Pine Bluff daily graphic., 1918-11-01


 Cine charges against Col. Deeds and the officers charged with dealing with concerns in which they were interest ed.)
 II agree wit the conslusion reached by Judge Hughes that thre is no evl- dence upon which it fairly can be charged that any member of the air craft boards including MT. Howard Coffin, General Squire, Colonel E. A. Deeds. Colonel k. l.. Montgomery, Colonel s. b. Waldron, MT. Richard F. Howe, MT. Harry B. Thayer, Ad- miral Taylor and other naval officers has been unlawfully interested in any contract or transaction relating to air craft production. Indeed as to this charge there has at no time been ground for question involving any of these gentlemen except Colonel Deeds"
 Of the $619,OOO,OOO originally ap- propriated for aircraft production, disbursements reported down to uJne 30, 1918 including advances for build- ing of plants and outlays of the sales department, similar expenses amount ed to $43O, 100000 and $276,0O0,OOO of the appropriation remained unexpend- ed at the end of the year. Of the $155,- O00,000 spent for airplanes and en- zines, $zo,000,O00 was for overseas manufacture; $21 100000 in advan- ces to contractors and $1 1,697,0 for experimental and development work. Thls left only $106,0O0,O00 spent for production in the United States. Of the latter amount $57,000,0O0 was paid under fixed price contracts, and $49, 100000 under cost-plus contracts.
 Official estimates place at $24,0O0,- 900 the loss to the government on ac- count of the condemnation of two types of planes, the Bristol fighting machine and the SJ-1 training plane, including about $6,500,00 on the Bris- tol and $17,500,000 on the SJ-1.
 Taking up the question of faulty organization of the signal corps at ter the declaration of war Mir. Hugil es declared Major General Geo. 0. Squier had neither training nor eX- perience for such large industrial enterprise"
 Referring to Colonel Deeds, MT. Huhges cited Colonel Deeds own tes- tlmony that he was stockholder and officer in number of Dayton, Ohio, concerns which either directly or in- dicetly were concerned in the airplane production activities about that city. He was an organizer but not stock holder in the Dayton right Airplane Company and it was to H, B. Tal- bolt, an officer in this company, the report says that Colonel Deeds sent information on a ruling of the judge advocate general relating to the ap- praisal of contracts after he had been commissioned in the army. Other con- fidential communications sent to Ial- bolt and other businsss associates in Dayton while Deeds was acting in an advisory capacity to officers in charge of contracts, are quoted For commun- icating with Talbott after be became an officer, the investigation by court martial was recommended.
 MT. Hughes also disputed parts of Colonel Deeds, assertions in letter to the aircraft production board that being commissioned he had severed his official connections with and trans ferred his stock in these concerns:
 The United Motors company of New York; the Dayton Engineering Laboratories company; Dayton Metal Products company, and the Do- mestic Building company of Dayton He transferred stock ill the United Motors corporation to his wife, the report says it was shown, and books accounts showing the time of the transfer of other stock in some cases. says the report, were dated back to August 2S. when Deeds was appointed a colonel. although not actually made until later. Since it is not proven, however, that Colonel Deeds trans acted any business with these firms tefOre he transferred his stock, no criminal charges are made against hin:.
 Colonel Sidney D. Waldron, assist chief of the equipment division of the signal corps was shown, the re- rCrts says, to have been a stock lc;der in the Packard company, but 1t does not appear that he took part iny any proceeding involving govern menl dealings with the concern Colonel Robert L.. Montgomery also held stock in companies holding con- tracts for manufacture of airplanes or parts but he did not deal with tlHcm in his capacity as an officer.
 Lieutenant Colonel Vincent, for whom criminal prosecution is rec commended. was shown, the report says to have authorized payment of sums to the Packard company while he was a stOckhOlder.
 Lieutenant Coolnel Geo. w. MiNter, a stockholder in the Curtiss Aero plane and Motor corporation, it is charged had charge of inspectors in that company's plant. Major Howard C. Marmon, a signal corps officers also is cited for his connections with the Nordyke and Marmon Company of Indianapolis, which held a contract for Liberty motors but since he had transferred his stock to his mother, the report holds there is insufficient ground for criminal charge against him.
 One of the most regrettable incl dents of the dalay in production, f,1Nt, thC rpnOrt tbat Dn ,ooD,,,+