Evening star., 1918-03-31
WHAT THE GOVERNMENT Is DOING

i. IN DV4UV
institutions that the measurements
made in practice are referred back to
the standards of the bureau. Second.
limited amount Of testing OF. CONNER
cial electrical measuring instruments,
radio. magnetic materials. etc. is done,
chiefly for the purpose Of keeping the
bureau in touch with tho needs OF the
industries, Of developing methods and
an ef o types ans Ths tier oy
ernment services. both for obtaining In
formation to be used In formulating
specifications and for the testing OF
samples Of deliveries Of materials pur-
chased under specifications.
The research work has mainly to do
with methods OF measurement. the de-
termination Of the electric and mag
net1c properties Of materials. and the
development Of those phases of engi-
neertng science in which measurement
plays an important role. Electrical,
radio and Illuminating engineering in
terests are all served by these investi-
cations. The bureau also renders Inn
portant service, both directly and indi-
rectly. to manufacturing and other in
dustries Some of this investigational
work Is on the more fundamental as
poets Of the principles involved. so that
the results may be applicable to class
to the one specific problem under in
vesttgation. The work in measure
meM of lights of different coiors and
the corre1atfons of magnetic and me-
chantcal properties of iron and steel
are examples.
The research work in radio communi-
cation. magnetism, radio activity is
along lines quite similar to those in the
more purely electrical measurements.
Standards have been and are being de-
n mo- a y
beng improved and important special
problems OF significance to the indus
tries and In number Of cases of par
tlcu!ar importance to the government
are being investigated.
*
Too much good cannot be said about
the method of purchasing employed
by the bureau Of
Purchasing the supplies and ac-
Nays Supplies. Department. Con-
tractors, in general. who deal with this
branch of the Navy are satisfied that
they are getting a square DEAL" and
the Navy is. therefore, getting as many
competitive bids as it can handle.
1t has been the policy to recommend
that. wherever practicable, an esti-
mated cost be agreed upon in order
that complete community of interest
may be established by increasing the
profit up to certain maximum or de-
creasing 1t down to a certain minimum
through the sharing by the contractor
and by the government Of gains or losses
in actual cost as compared with the
estimate. In cases where the manu-
facturers are undertaking a line of
work which is new to them the fixing
nj cot ffCf o1fn ncff fYro fu6 c
however. difficult II not impossible.
In entering into a cost-plus-per-
centage contract, or into cost-plus-
fixed-perce ntage contract where the
centage on estimated cost. it is be-
coming more and more evident that
several elements-chief of which Is the
rapidity Of the turnover-must be
taken into consideration. Otherwise
the profits, supposedly fixed on rea-
unreasonably low when measured as
return on investment in plant, in
ventories and working capital Ten
per cent on cost will result in some
cases. due to the rapidity with which
the article can be turned out. in 100
per cent per annum return on invest
ment, or even more: and. conversely,
when the turnover is slow. it may be.
and frequently is, much less than 10
per cent per annum return on invest
ment.
In the manufacturing contracts it has
been specifically provided that federal
income and excess profits taxes are not
to be regarded as a part of the cost.
Inasmuch as these taxes are by their
nature an assessment on net profits
realized after all deductions have been
made for manufacturing expenses, and
inasmuch as the taxmakinv power
conferred upon the government pre-
sumably cannot be nullified by con-
tract entered into by an executive de-
partment. it appears doubtful whether,
even were the contract silent on the
subject. a manufacturer could recover
these items as part of the cost.
The director of the bureau of war
risk insurance and the commissioner
of military and naval in
Tnerr;,r surance have charge of the
administration of and are
ooio1eIs. given full authority. with
the approval of the Secretary of the
Treasury, to make rules and regula-
tions to carry out the most compre-
hensive and constructive plan adopted
by any government to relieve its SOL
diers and sailors from unnecessary
worry concerning the welfare OF their
families and dependents or the eS-
ira ordinary hazards of the service fhey
are called upon to render their country.
In ,he legislation passed by Congress
nroyision Is made for three govern
mental undertakings. with the admin
istration of which the bureau Of war
risk insurance, through the division of
military and naval insurance, is
charged
For one thing. provision Is made for
allotments and family allowances. This
means that the soldier and the sailor is
expected and required TO make proVi-
sion to the extent of his ability for
the support of his wife and children.
He must make truthful statement.
under severe penalty for any mis-
statement. concerning the existence
and status of such dependents. He
must allot not less than s15 per month,
and may be required to allot not more
than half his pay each month for their
support.
The government has provided a
schedule of allowances which 1t will
make to these dependents to supple
ment the allotment made by the man.
In addition to the compulsory allotment
the enlisted man may make voluntary
allotments for the benefit of certain
relatives other than a child or wife.
ment being made. the bureau is author
relatives in accordance with a pre-
scribed schedule. provided the total
payment to such relatives, including
what the enlisted man has voluntarily
allotted and what the government
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