Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-11-30
QUESTION STATUS
OF: WAR CONTRACTS
Comptroller Holds That All
Should Have Been For
maily Executed.
WILL REQUIRE LEGISLATION
Question Arises m Preparing
Form for Cancellations by
War Department.
fBy Associated prcs.1


WASHINGTON. November oo-f:ov-
ernment war contracts involving hun
dreds of millions OF dollars. were rem
dercd doubtful in status to-day bv a
oeclsion OF Comptroller Warwick OF
the Treasury that orders have moi
peen legally executed unless actually
signed By responsible government
contracting agents and the contractor
Ihe War Department submitted to
the comptroller u form Of cancellation
agreement under which 4, was pro
posed TO abandon without unjust loss
to contractors thousands OF war supDjv
contracts He refused 10 aDDrove The
ngre,ement. holding tha, tile depart
~ an arbitrary sum TO cover liabili-
yes unless specific authorization for
f.n, .nix Is given in previously existing
large proportion of war orders
,syasrasH,. mfyrs siven n informally by, telephone.
framing OF agreements for canccila-
MANY PROCEEDED on
TELEGRAPHIC INSTRUCTIONS
In the confusion and haste Of war
many many e,iann manufaGturers a' proceeded with
instructions of subordinate army OIL
GERS. and the termination of hostilities
pama tpsc.s 'hTm rhe unpr6tsf,ed by legal con
,,rIolier, who has rendered their nosi-
ton questionable. grows out of his SUI
ury On order of other departments.
In submitting the tentative form for
retary Baker explained that III is i'm
portant IN the interest of labor and
the industrial security of the country
that these plants 1referring mainly TO
muliition tactories) be returned to
I;2nim1erciai ;,iin1 work as speedily as .prac-
. ,icao & ana SO far as possible without
ttf,,
ana employment Of labor"
Ss.Gretary Baker continued:
The department. therefore desires
10 enter into supplementary contracts
With With such contractors by which :. sum
such basis Of adjustment will be pa i'll
Immediately TO the contractor upoa his
consent To termination of the origi-
mel contract and release to the gov
eminent from All its obligations
N ,aerenmder, the department. agreeing
sum ns the Secrctaryfof War 1av de-
termine viii complete payment to the
ment"
DECLARED 40 BLANKET
FORM COULD he DEVISED
;, Comptreller Warwick held th,i 10
devised TO cover ali cancellations. lie
deGiared that cases involving, only
lation.
W nen OTlS mai contracts contained
no terminating clause. the decision in
fers that IL is doubtful whether Il new
contract could be made allowing more
than actual cost OF materials on hand
less their salvage value. In other
words. IL is questionable whether al
lowance could be, made for profit
growing out OF the cance lla:ion.
Secretary Baker issued to-day
general policy cancelng. war supply
contracts and aiding in the restorat ion
OF industry TO normal basis. He
made IL clear that the department
proposes 10 do its own camceing in
stead OF leaving the task TO the war
public interest 10 discontinue the pro-
are no longer needed by the army
Secretary Baker said. "negotiations
for prompt settlement on contracts
Will be undertaken by the War Depart
ment in spirit Of fairness and hope
fulneSs TO all concerned
1T is expected that contractors on
their part will undertake to furnish in
the manner prescribed definite state
ments which will facilitate prompt
payment of the obligations of the gov
ernment."
The comptrollers decision sets forth
that an army officer, with responsible
ty for negotiating contracts. has no
legal power TO decide on a sum 10
which a contractor is entitled for can
collation. OF an order even though this
sum is agreed upon with the con
tractor