The Birmingham age-herald., 1918-11-01
Delays and Wastes Due to Defective Organization,
 Document Says
RYAN MANAGEMENT
 IS NOT CRITICIZED
No "Graft" Is Reported, But Pro- ceedings Against Certain Officers Is Strongly
 Recommended

Washington, October 31.
 the aircraft investigation, con- ducted during the last five
 months by Charles F. Hughes
 and Attorney General Gregory,
 was placed before President Wilson today by the Attorney
 General and immediately made public.
 Delays and wastes of the production programme, the re- port declares, were due chiefly to the defective organization of the aircraft production and the serious lack of competent direction of that work by the responsible officers of the sig, nal corps.''
 .
 ment of aircraft affairs since the re- organization Of last May, which placed John D. Ryan in charge The civilian pefsonnel of the aircraft board is exon erated of any wrongdoing.
 Attorney General Gregory, in a letter transmitting the report to President Will son, says he Is in substantial accord with the finding by Mir. Hughes.
 The report finds no graft in the gen. erally accepted sense, but makes recom- 1iendations for proceedings against army officers held guilty of dealing with cor porations in which they were interested.
 The chief waste from the original ap- propriations of S691 ,S51 ,S66, the report
 says. was in the abandonment of two types of airplanes-one of them the Bris- tol-and a failure to salvage, aggregat
 ing about s24000,000. The figures show < that last May of the great appropria- ton, 10,O00 actually had been dis bursed and that up to October 1 the ex
 pendture had reached about $l40,000, 000 for all aviation purposes This did not in-
 c1ude expenditures of the sales depart 1nent, which buys material and resells it to manufacturers, and for advances for building plants. Contracts let, however, committed about GOO of the fund.
 The figures are given in answer to the general charge that the sum had all
 been expended with practically no re- suits.
 The Attorney General concludes in his letter of transmittal that mo such prof.
 it's have been allowed as to justify a aharge of bad faith"
 RECOMMENDS COURTMARTIAL Col. E. A. Deeds, the storm center
 about whom ragged most of the charges which brought on the investigation, the
 report recommends, should be brought h.fn 11,t ,rtt tol fn,. Tidential war department information on the aircraft situation to former business
 assistants in Dayton, Ohio, and for be-
 ing sponsor last February for gross mis-
 leading statements to the effect that
 ssthe first American-built battleplanes
 are today en route to the front in
 France"
 Criminal prosecutions of three army officers are recommended on the ground that they transacted business with cor porations in which they were financially
 interested. These officers are: Lieut. Col J. G. Vincent, former vice presluent of the Packard Motor Car company. now ' in charge of the airplane engineering di- vision of the aircraft production bureau; { Lieut. Col. George W. Mixter. stock
 holder in the Curtiss Airplane and Motor
 corporation, production manager of the
 aircraft bureau, and Second Lieut.. Sam
 uel B. Vrooman, Jr., inspector of pro- peller lumber and stockholder in the S N B. Vrooman company of Philadelph- "a, X which sold mahogany to the government K for airplanes.
 VI Mr. Hughes concluded his report with the statement: Tt is not within the province of this report to make recom- mendations with respect to administra- tive policy, but 1t should be said that under the direction of MT Ryan and MT. Potter there has been improvement Hon made in gratifying measure"
 William c. Potter, to whom MT. Hughes referred, is assistant director of aircraft production.
 GENERAL RECOMMENDATIONS The general conclusions and recom- fnendatons by Mir Hughes follow: "The evidence diseloses conduct which. although of a reprehensibe character, cannot be regarded as affording suf- 1 ficient basis for charges under exist ing statutes, but there are certain ac- counts shown, not only highly improper In themselves, but of especial signifi- canoe which should lead to disciplinary measures The evidence with respect to l Col Edward A. Deeds, should be pre- sented to the Secretary of War to the l end that Colonel Deeds may be tried by courtmartial under articles 95 and 96 of | inc articles of war for his conduct D in acting as confidential advisor of silis for mer business associate, II. F. Talbott, of 1 the Dayton Wright Airplane company, and in conveying information to MT. Talbott in an improper manner, With re .nect to the transa ction of business be- 1 tween that company and the division of the signal corps of which Colonel Deeds | was the head and @ ia giving to the l representatives of the committee on pub lie information a false and misleading statement with respect to the progress ~r aircraft production for the purpose