Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1918-11-01
Manufacturers Grow Fat
on Government Air.
craft Contracts.
SMALL CAPITAL;
GREAT RETURNS
HUGHES Report Names Dayton.Wr'snt
Corporation, Ford Motor Company,
Fisher Body Company, Packard
Motor Company and Lincoln Motor
Company az Profiteerins at Expense
Of Enormous.

Washington. Nov. 1.-The mistakes,
failures. delays and wastages OF the
airplane production program under the
administration of the old aircraft board,
before the reorganization Of last May,
are detailed at length in the investiga-
ton conducted by Charles E. Hughes
and Attorney General Gregory. which
was, before the country today after
having been made public at the White
House.
While the report acknowledges the
achievements of the new administration
had been made by John d. Ryan! it
tdcais unsparingiy with the shortcpm-
ings of the old organization and recom-.
mends court martial for one army Off
Ger concerned and criminal prosecution
of three others.
The chief blame for the failure is
charged to defective organization plans
and the lack of competent directors of
the work by the responsible officers of
the corps.
The report finds that there were de-
lays in getting airplane models from
the allies and preparing specifications
for their production: that plans were
changed to the embarrassment of con-
tractors; that there was confusion and
waste in the plans.
Government Now Shares Profits.
Profits, in some instances. Mr..
Hughes reports, were enormous, altho
Attorney General Gregory points out
that 60 per cent Of these profits revert
to the government in war profit taxes
and expresses the belief that mo such
profits were allowed as to permit the
charge of bad faith"
The Dayton Wright Corporation, the
report says. with a capital of $1,000.000
and government financing TO the extent
of $1,405, 900, has prospects of profits
OF more than 100000
The Ford Motor Company. on con-
tracts for 5000 Liberty motors. the re-
port estimates, will make a profit of
more than $5.000.000 on an investment
of not more than $11,s00.000.
Small Capital; Big Returns.
The Fisher Body Company with an
investment of 100000 and government
financing of $4,000, ,ooos the report says,
/, is estimated to make profit of $3,-
5000
| The Packard Motor Company, with
an investment of s11,S0s, 900 and con-
tract for 5000 Liberty motors, is esti-
mated to be realizing profits of S6.-
45O. 900 on seventeen months work.
The Lincoln Motor Company, with
a capital Of $s5D.0OO and investment of
| $7,150. 900, of which $3,460.0O0 repre-
| sent items on which the government
pays 40 per cent depreciation. Is esti-
mated to have in prospect or In hand,
profits Of $7.15O,000.
| For a whole year after the coun-
| try entered the war, the report says.
] the equipment division Of a single
corps of the army was badly organized
with host Of sections and depart
creating disorder"
| Wastase Of $4,000, 600.
The chief actual wastes Of the ori-
| sinal appropriations Of $64o.000,o00,
which later was increased. the report
says. was in the abandonment Of two
types OF airplanes-one of them the
much discussed Bristol - and the
failure to take advantage Of salvage
from the abandonment This was
computed as to aggregate $4,000. 900.
While there is no charge OF graft" "
the report recommended that criminal
proceedings be brought against three
/ army OFFICERS on charges Of dealing
] with corporations in which they ware
financially interested. They are Lieut..
Col. ]. G. Vincent, former vice-presi-
dent ofsthe Packard Motor Car Com
pany and now in charge Of the air.
/ plane division Of the aircraft produc.
tion board.
Lieut.. Col. George w. Mixter {
stockholder in the Curtiss Airplane
and Motor Corporation and production
manager Of the aircraft bureau.
Lieut. Samuel B. Vroonan, Jr., In
spector Of propeller lumber and q
stockholder in the 81 B. Vrooman
Company of Philadelphia.
Would Court Martial Deeds. 80
Recommendation also IL made that
Col. Edward A. Deeds member o.
- n :. lf1 1l rs Z lilf 4