Republican farmer., 1918-11-08

Washington, Nov. 1.-The mistakes, failures, delays and wastages of the a1rplane production program under the administration of the old aircraf+ board, before the, reorganizat3or of last May. are detailed at I4agth in the ------c7ss ot the tI4y-s.9e55s alton 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 successes and achievements of the new administration in aircraft, head ed by John D. Ryan, it deals unspar- ingly with the shortcomings of the old organization and recommends court martial proceedings for one army off, cer concerned and criminal prosecu- tions for three others.
 The chief blame for the failures is charged by the Hughes report to de- fective organization in the army sig nal corps and the lack of competent direction of the work by the respon- sible officers of the corps. The report finds that there were de- lays in getting airplane models from the Allies and preparing specified tions for their production; that plans frequently were changed to the em- barrassment of contractors; that some manufacturers well qualified by or ganiEation and experience could not get orders while others apparently with few qualifications, if any, did succeed in getting them, and that there was confusion and waste in the plants.
 Profits in some instances, MT Hughes reports, were enormous, al though Attorney General Gregor, points out that sixty per cent. o these profits revert to the governmen in the form of war taxes and ex presses the belief that no such prof its were allowed as to justify a charg <. of bad faith"
 The Dayton-Wright Corporation 4he report says, with a capital of $1, 0Oo, 900 and government financing t tile extent of $1, ,4O5, 900, has prospect of Nproits of more than $6,000,00( The Ford Motor Co.,, on contracts fo 5000 Liberty motors, the report est mates, will make a profit of mor than $5,OOO,OOO on an investment ( not more than $11, 800, 10000. Tn
 
 vestnent of SS6O, 900 and governmer financing of $2,00O,000, the repol says, is estimated to make a profit ( $3,5O0,000.
 The Packard Motor Co.,, with ca culated investment of $11, ,808,00 an a contract for 5000 Liberty motor is estimated to be about to realii profits of $6,45O,OO0 on seventee months work.
 The Lincoln Motor Co.,, with pa in capital of S850000 on an inves ment of $5OO,O0O, of which $25O,0t represents items on which the go ernment pays 40 per cent. depreci ton, is estimated to have in prospe or in hand profits of $7,150,0O
 For whole year after the count entered the war. the report says, u equipment division of the Sign Corps of the army was badly orga ized with "a host of sections and partments with ill-defned functio creating disorder and confusion rat CT than sustained, well directed a expert effort.'
 Hundreds of flying cadets the I port says, were held at training cam during the early months of the W without facilities for training becau there was a failure in delivery draining planes.
 The chief actual wastes from t original appropriation of $G4O,00 O00 was subsequently increased, { report says, in the abandonment two types of airplanes, one of tn, the much discussed Bristol, and [ failure to take advantage of salva from the abandonment This wa was computed as aggregatlng s2 100000.