New-York tribune., 1918-02-01
Secretary Bakers
Brother Got Contract
For $921,OOO in Aeros
By c. w. Gilbert

WASH NGTON, Jan. 31.-The SEN
ate Military Affairs Committee devel-
oped to-day the fact that Secretary
Bakers brother. H. D. Baker. of Cleve-
lahd. got contracts to manufacture
spare parts of airnlanes The amount
or the contracts was 1921, 900. II. D.
Baker was former employe of the
city of Cleveland. He had no expert
ence IN manufacturing airplanes. When
ne hrst sought a contract he had no
plant for the making of airplanes or
their parts. Failing to get contract
on this basis, he associated himself
with A: J. Engel. who had had expert
ence with the Curtiss company and who
had a small organization and was MAX
ing flying boats. Having a plant, he
got contracts. The contracts we're
made by the Signal Service Bureau of
Thc War Department. and therefore by
subordinates of the Secretary of War.
When this information was brought
out Secretary Baker issued a state
ment saying that when he heard of
the transaction he ordered the con-
tracts cancelled, but subsequently he
sent representative, Eugene Meyer,
Jr., to Cleveland, and his brother with
drew from the company. The Secre-
tary said that his brother made no
profit out of his connection with the
company, receiving on his retirement
only the money he had put into the
venture, with interest and reasona-
bic salary for the time he had devoted
to its affairs.
Colonel Deeds, who told the story
OF Mr.. Bakers contracts under cues
tionlng from Senator Frclinghuysen,
said that the Engel company. of which
IL. u. Baker was president, was doing
good work in the performance Of its
contracts
Secretary Baker gave no date for
his brothers severance of relations
with the company. OF the three con-
tracts which the Engel company has
tor aircraft parts, the first was made
in October and the last only few
days ago.
That committee has been severely
critical Of contracts that we're held
by persons connected with the govern
ment, especially with the Council of
National Defence, on held by members
Of their families. 1t has been opposed
to the policy of secrecy with regard to
contracts which was pursued by the
War Department, and which made Dos
s'ble this contract with II. d. Baker.
When Secretary Baker was on the stand
on January 10 he was asked about this
policy as follows:
Senator Mcclellan: "Mr. Secretary,
mental policy-that policy of secrecy
about contracts 2"
Secretary Baker: eyes, sir; I
thought it was necessary under the
circum stances, Senator"
Senator McKellar: do you still
think it is necessary
Secretary Baker: ~ am inclined
to think it still may be necessary
The official stenographic report Of
the proceedings to-day follows:
Senator Frelinghuvsen: "What con-
tracts has the Enecl Aircraft Com
pany, at Niles, Ohio?"
Colonel Deeds: "The Engel Aircraft
Company has contracts for spare parts
for airplanes. There are three con-
tracts, of small size. one dated Octo-
Der rs, another January 8 and another
January %"
Senator Frelinghuysen: "How much
in amount arc they" 90
Colonel Deeds: 1921 ,000."
The Chairman: "Altogether?"
Colonel Deeds: "Altogether; the
total of it,
Senator Frelinghuysen: "Well, that
company was organized for the pur-
pose of making spares, was it not?'
Colonel Deeds: ut was organized
for the purpose of making AIRCRAFT, I
think. Mr.. Engel, of that concern, was
a former employe Of the Curtiss COM
pany and had small organization that
had been building flying boats in n
small way. I think he was sent as n
representative of the Curtiss company
at one time to Spain and to some of
the other foreign countries to help
them get plane production started He
had had quite little experience, and
some company was organized around
that experience that took over truck
company, very large plant the pho
tographs Of which we have here, for
the making of aircraft"
Senator Frelinghvvsen: "Who or
nzed the company"
Colonel Deeds: The company is
composed of II. D. Baker, president
and A. J. Engcl, engineer"
Senator FrclinghYysen: "Is Mr.
Baker brother OF the Secretary Of
War"
Colonel Deeds: eyes, sir"
Senator Frelinghuysen: "Who made
this contract with Mr.. Baker,"
Colonel Deeds: "That was made
through the regular channels Of the
equipment division"
Senator Frelinghuysen: "And did
you have anything to do with it?"
Colonel Deeds: "Well, as chief of
the equipment division ! would be re-
sponsible for the work. The plant was
inspected by Major Sheppler and