The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-12-30
DIPLOMATIC IRll9aRIES
CONFRONT 0tlALs|
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s%As3s fTsstEssstt
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Governmcnt I'm Difyhanet<D 0SaE QuN
ton of Legality OF WAR Supply
Contracts. !.

Washington, Dec. Dip1eAfnk1c
difficulties confront the UnHe6BtA&A&A
government as result of the control
Ter of the treasury's recent ruhn1
questioning the legality of formal Ssup-
ply contracts let by the Faft defAxtsI
ment The international complies
lions arise from the contrpller's a.. h
cision preventing payment sof monaUa
on agreements made with foreigus
governments.
This angle Of the war contrA01
tangle was revealed today when S0c.}
rotary Baker and other officials OH
the war department appeared' befofNS
the house rules committee tosurge III
special rule to allow immssiiHte cOn-l
sideratton by the house of the Dcn4i
bill giving the secretary of war au.t
thority to adjust the claims. sOppoaa-
ton developing in some Quarters. I'll
was feared. would prevent the n1ea1-
ure from being taken up.
Following today's hearing the corn
mittee decided to report out q speciats
rule for Thursday. January 2, whdnf
it is expected a quorum of raeHlbersS
will he back after the holiday reces4i
The special rule would allow foutI
hours of debate evenly divided bel
TWEEN the Democrats and RenhbIi-1
cans. IL is hoped to pass the Till
that day.
Ninety per cent of the cpRtract1s
for supplies ordered in Englsndl, fhSf
committee was told, were let throu6n{
the British governments !. Theys{11dtedf
States had virtually no direct dealinG1i
with private contractors The, REitisnI
government distributed the ordNrAI
among government controlled Ana
private factories :, .sss Nj NJ
Under these conditions the cons
tracts of necessity had 10 b9 fnformalf
Secretary Baker complainant EoFma8
contracts with foreign gavernmen8
could not be entered into except byt
means of a treaty. '}s@s.
The emergency allowed no time t0H
go through the formalities' Of neg0sf
tiating a treaty. s.sf
n Aholyt SO ner eents Of the war @ups&
Plies ordered ia FRANCE, s we're gcnlfsj
tracted for through the French gcvss
eminent s
Englands profits from AmericaxE
contracts were larger than tnUM -
asked by France, said Edward Rs 6tets
tinius. former assistant secretary an
war. who was in charge Of suppHe1P
for the American expeditlonary IorcA&
The British government recOgni1a4f
the equitable right to claim q pronT.s
he testified.
War materials produced In FranceNk
government owned plants We're TUT
nished this country at cost.
The value of contracts placed IN
FRANCE, said Mr.. Stettinius. .Woule
reach two billion francs. Tens "a
millions Of dollars will be saved tn aMsX
justing the cancelled orders under a.
proposed legislation, it is cdamed.
The war department, Secretary H
ker said. also mas contracts In s1tAH
Spain and Switzerland which arr An
yolved in the controllers ruling, T.
contracts with neutrals were let on
strictly business basis, he .nAiNtA
The Dent bill permits suk1ttfM
contracts providing for .ad1uatnAa
OF foreign claims. - e.-ee9. - sa
Discussing the domestic phase, He
rotary Baker said -speeds is ilnposfA1
in order that the industries Anoce91
may embark upon peacertime aeeaxS
ties - $50 sAS @sas
General Pershin0 has c1hl0ta sGl
this legislation is ,TryvT neceasA
said the secretary =. s3sss
Assistant Secretary OF WArf4sr0SEe
said the war depart nent- had xaCAty1g
numerous telegrants from ssnlAnufn41
turers holding Terminated sc0ntAee4
Some of them said they faHsr An1
ruptcy within one week atId Us14G
said this danger would sonfront The
within two weeks se-sF-
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