The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1918-11-01
HUGHES REPORT in
Aircraft Statement Tells of In
efficiency in System.
COurtmartial Is Suggested for
Officer in Department.

| OA1NNA AA DCHsAA sA~ASAAs
| Washington, Nov. 1.--Secretary of
War Baker was considering today the
| recommendation of Charles E. Hughes
| that the war department consider the
advisability of communicating Colo
mel Deeds. aircraft leader. The Hughes
report of investigation into the air
craft situation placed in Bakers hands
late Thursday was studied by the Sec
rotary and decision as to courtmar-
tial was expected soon.
| The report was generally viewed
| here as milder in its conclusions tnan
the senate air probe findings.
| Hughes held Deeds was guilty or
nothing criminal, but considered he
| had done things unbeconing an Off
Ger in giving war department data to
men with whom he was formerly asso-
ciated and that he had advised the
committee on public information in
correctly, as to the air program.
Criminal Action.
| At the same time Hughes recon-
mended criminal action against Lieut..
| Col. J. G. Vincent, former packard
Motor Car company vice president;
Lieut.. Col. G: w. Mixter and Second
Lieut.. Samuel B. Vrooman. Jr., for al
| legged violation of statutes providing
that government officers shall not
have business interests in concerns
with which they have official contact.
About $24.OOO.O0O was found to
fhave been lost thru abandoning two
types of airplanes and falling to do
salvaging.
| In answer to claims that the original
vast appropriations have been squan-
| dered. Hughes pointed out that the
expenditures and Commitments up to
October l were less than the original
grant.
Defective Organization,
1.-THE defective organization of the
work of aircraft production and the
serious lack of competent direction of
| that work by the responsible officers
of the signal corps" said the conclu-
| sions, ito which the delays and waste
| were chiefly due, were matters for
| administrative correction thru unifica-
ton of effort under competent con-
| troll
He held the reorganization under
John G. Ryan has caused marked i'm
Vast profits in airp1ane production
were revealed but none was held to
be in bad faith. The Dayton-Wright
company, it was estimated, should
make over 100000 on contracts up
to next March; the Ford Motor COM
pany over 100000 on contracts to
|
on contracts to January.
| Attorney General Gregory's supple
! mental letter held that more than half
of these profits were taken in taxes
| by the government. Hughes, himself.
| pointed out that manufac turers figured
on a liberal profit margin and that
! there was small incentive to economy
| under the cost accounting system.
Hughes found that there had been
some bad organization work and that
in some cases contracts were given to
poorly equipped plants over well
that contracts withdrawn from the
Enge1 Aircraft company were re-
awarded after Secretary of War
Bakers brother had resigned from the
| concern.
Neither political party found much
campaign material in the Hughes re-
port. One phase eagerly seized upon
| by politicians was that Hughes showed
Henry Ford persisted in employing
men of German origin. Gregory's re-
! port added that the result of Ford s
! factory had been fully up to require
| ments.
The Report
Washington Nov. 1.-The general
! conclusions and recommendations by
| Mr.. Hughes follows:
1.-THE evidence disr!oses conduct which.
altho of n reprehensihle CHARACTER cannot
| be regarded as affording a sufficient basis
| for charges under existing statutes, but
there are certain acts shown. not only
special Significance. which should lead to
| disciplinary measures. The evidence with
respect to Col. Edward A. Deeds, should be
end that Colonel Deeds may be tried by
court martial under articles 80 and 96, OF
articles i Of war for hts
his former business associate. II. f. Tai
bolt of the Dayton Wright Airnlane com
Talbot in an improper manner. with re-
| spect to the transaction of business be-
tween. that company and the division OF
| was the head and
"t2) In giving to the representatives of
and misleading statement with regard to
| the progress of aircraft production for the
purpose of publication. with the authority
"The absence of proper appreciation OF
the obvious imnropriety of transactions by
or corporations in which they are inter
ested. compeIs the conclusion that public
policy demands that the statutory provi-
strictly enforced 1t is therefore recon-
| mended that the officers found to have had
| transactions on behalf of the government
| with corporations in the pecuniary profits
! of which they had an interest. should be
prosecuted under section Al Of the criminal
| .'The federal trade commission should be
requested to report upon the proper cost OF
end that upon the coming in Of its report
! the question of the propriety OF further ac-
ton with respect to the transaction of the
Mahogany Manufacturers and Importers
! association may be determined.
! at is recommended that the representa-
| tives Of the department of justice should
keep in touch with the progress of the re-
audit of accounts. SO that it may be ad-
vised Of the complete enforcement Of the
rights Of the government in final settle
| ment Of accounts. and that the government
has been fully protected against. unneces..
sary loss thru waste and the absence of
| suitable factory supervision.
| Permit me also to suggest that special
division, subdivision OF the present