The Oklahoma City times. [volume] (Oklahoma City, Okla.) 1908-1984, 1918-11-29
MANY CONTRACTS
STILL UNBROKEN
Department Plan for Cancel
ing Orders Void,

WASHINGTON, Nov % Govern
ment war contracts involving hundreds
Of million OF dollars were rendered
doubtful in status today by a decision
Of Comptroller Warwick OF the treas
ury, that order, have not been legally
executed unless actually signed by re
sponsibe government contracting
Igents and the contractors.
The war department submitted to the
comptroller form Of cancellation
agreement under which it was proposed
10 abandon without unjust los, 10 CON
tractor, thousands ot war supply con
tracts. lie refused to approve the agree
ment holding that the department may
rot agree with contractor on an ar
bitrary sum. to cover Liabilities unless
specific authorization for this is given
IN previously existing contract
A large proportion Of war orders
were given informally by telephone, tel
egraph or letter it is said In such
cases the comptroller held new lcRiS-
lation win be necessary to permit fran
ing OF agreements for cancellation
In the confusion and haste OF war
many manufacturers proceeded with
tremendous orders OH tclegraphic in
structlons Of subordinate army officers
and the termination Of hoSthtiCS found
them unprotected by legal contract. The
authority OF the comptroller who has
rendered their position questionable,
grows out OF his supervision OF all pay
ments by the treasury on order OF other
departments
What Department Seeks.
I'm submitting the tentative form for
standard cancellation contract, Sec
relary Baker explained that 1T is i'm
portant IN the interest Of labor and
the industrial security OF the country
that these plants (reierring manly to
muniton iac,urlc,D be returned to COM
mercc work as speedily as practicable
and so far as possible without break
in their coutinuou, operation and EN-
ployment OF labor
Secretary Baker cuntlnu,
"The war department believe, that
many such contractors are wiling "a
iorero the prospective profits on the
remainder OF the work contemplated by
the contract and terminate the existing
contract ON . basis which would amount
substantially 90 compensation Tor eN-
pendturcs for expenses incurred and
profits not to exceed 10 percent on the
cost OF the unfinished articles on hand
"a basis more favorable 10 the govern
ment than the terms OF the contract
would permit IT they can secure
promptly q substantial portion OF this
sum 80 a, to release their working cap
i,al ior wi,,hlug back TO commercial
work
To Protect Contractors
The department, therefore. desire, {,
enter into supplementary contract, viii
such contractors by which a sum wei
within what 1t Is certain would hay
20 he pad by the government on sucI
ba,is oi adjustment will be paid immc
dialely to the contractor on his ConScn
10 a termination OF the original con
tyac. and a release TO the government
from all it, obligations hereunder, tn,
department. agreeing to pay substantial
" such additional sum as the secretary
Of war may determine will compet,
payment to the contractor on such basis
OF adjustment
Comptroller Warwick held that NJ
blanket 4orm OF contract could be de
WScd 10 cover all cancellations. II,
Ierl4rpd thlY fateI iuyolNtup Dul,
equitable claim, cannot I've settled b,
executive officers without new ieglS
aton.