The news scimitar. (Memphis, Tenn.) 1907-1926, 1918-11-01
HUGHES AIRCRAFT PROBE REPORT
PLACES BLAME FOR MANY errors

TLhULO DLHML
WASHINGTON, Nov. 1.-The long
awaited report on the aircraft inYesti-
CATION conducted during the last five
months by Charles e. Hughes and
Attorney-General Gregory has been
placed before President Wilson by the
| attorney-general and IL made public,
Delays and wastes Of the production
program, the report declares, were due
chiefly to the defective organization
OF the work Of aircraft production and
the serious lack Of competent direction
Of that work by the responsible off,
Gers OF the signal corps"
No fault is found with the manage
ment Of aircraft affairs since the re-
organization OF last May, which placed
John ID, Ryan In charge. The civilian
personnel of the aircraft production
board Is exonerated Of any wrongdolng.
Attorney-General Gregory, in a let
ter transmitting the report to Presl-
dent Wilson, says he lis in Substantial
accord" with the findings by Mr..
Hughes. -
The report finds no graft in the
generally accepted sense, but makes
| recommendations for proceedings
against army officers held guilty of
dealing with corporations In which they
were Interested.
The chief waste from the original
! appropriation Of 1851, S51 1856, the report
SAYS, was In the abandonment of two
types Of airplanes-oRe Of thsin the
Brlstol-and a failure to salvS ag-
gregatiug about S24, 600, 900. The figures
| show that last May Of that great APP
preparation $4,000, 900 actually had
| been disbursed and that up to Oct. J
| the expenditure had. reached Feabout
$40, 00O, 900 for. all aviation purposes;
| This did not include expenditures Of
tho sales department, which buys ma
| terial and ~resells, 1t TO manufacturers,
and for advances for building plants;
/ Contracts let, however, committed
! about $40, 600, 900 Of the fund.
Without Results.
The figures are given in answer 10
tho general charge that the sum had
all been expended with practically no
results.
The attorney general concludes in his
letter Of transmittal that mo such
profits have been allowed as to justify
a charge OF bad faith"
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
before a court martial for sending con-
fidential war department information
ON the aircraft situation to former
business associates In Dayton, o. and
for being sponsor, last FebruaAg, for
a grossly misleading statement to
the effect that the first American
built battle planes 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 corporations IN which they We're
financially Interested, These officers
vice. president OF the Packard Motor
Car company, now IN charge of the
airplane engineering division of the Air
craft production bureau Lieut.. Col
George W. Mixter, a stockhOldgf IN
the Curtiss Alrplane and Motol cor
aircraft bureau, and SecondykLleu
Samuel b, Vrooman, Jr,; inspector
propeller lumber and stockholder ifes
=, B, Nrooman LuInhtg comnanY
Philadelphia, which sold nlalatkaA
| the government for airplanes.
MIR, Hughes concluded his report
the statement that 1T Ii not W
the province Of this report to
recommendations with respect to-
| mlnistrative policY but II shoull
said that. under the direction OF
Ryan and Mr., Patter there has
improvement In organization and
ress has been made In gratifying
uTe,"
William G. Potter, 10 whom
Hughes referred, IL assistant d
of aircraft production.
Recommendations.
Tho general conclusions anf
mendations by Mr.. Hughes 3
'"The evidence diseiVSe4
which. although of a
character. can not be regafFsd as hfs1
| TnpAip.E Al ztITFf.iapA Ia ulu fa,N = ha Vcaa
under existing statutes, but there are
certain acts shown. not only highly
improper In themselves. but OF special
significance, which should lead TO dis
CiplinRry measures, The evidence with
respect to Col, Edward A, Deeds should
to the end that Col. Deeds may be
tried by court-martial under articles
95 and 30 Of tho articles of war for
his conduct % In acting az eonfiden- |
tial adviser OF his former business as
goclate, II. h, Talbot. Of the Dayton
Wright Airplane. company, and in con-
veying information TO Mr., Talbot In
an improper manner with respect to
the transaction of business between |
that company and the division of the
signal corps OF which Col. Deeds was
the head; and ca In giving to the rep |
resentatlves OF the committee ON pub |
lie information a false and misleading |
statement with regard to the progress
OF aircraft production for the purpose |
Of publication with the authority OF
the secretary OF war.
THE absence OF proper appreciation |
OF the obvious impropriety OF transact |
items by government officers and agents |
with firms or corporations in which
they are interested, oompels the conclu- |
sion that public policy demands that
the statutory provisions bearing upon
this conduct should be strictly en- |
forced. 1t Is therefore recommended
that the officers found to have had
transactions on behalf Of the govern
ment with corporations In the pteun- |
larry profits Of which they had an in
%terest, should be prosecuted under Soc
ton Al Of the criminal code,
THE federal trade commission should
be requested TO report upon the proper
lers, to the end that upon the coming
In Of It's report the question of the
propriety Of. further action with respect
to the transactions of the mahogany
manufacturers n importers assooi-
alton may be determined,
at IL recommended that the repre-
sentatives OF the department of JUS
tice should keep In touch with the
progress of the re-audit Of accounts
so that II may be advised Of the COM
plete enforcement of the rights OF the
government In final settlement of ac-
counts, and that the government has
been fully protected against unneces-
sary loss through waste and the alb
sence Of suitable factory supervision,
Division Needed.
Permit me also TO suggest that a
special division, or subdivision Of the
present bureau OF investigation, In the
department OF Justice, should be as-
| signed to the consideration OF suggest
| cd ~delinquoncica In connection with air
craft production 30 that the work al
ready done may be appropriately fol-
lowed up. In particular, it Is recon-
mended that the activities in relation
to spruce production, which being large.