Arizona republican., 1918-11-01

much less, and that through it's share in this saving, he contractor would be able to derive an increased profit from economical management. It is appar- ent however, that with a large fixed profit guaranteed. the incentive to economy is not SO strong as when the entire venture is at the contractors risk"
 The fixed profit per plane varied with different concerns.
 The Dayton Wright company. with contracts for 4,000 de Haviland planes, to be completed before next March. the report said, should make profits of $6,- 100. 900 and s250, 900 additional under minor contracts. This company was or ganiZed shortly after the declaration of war with paid in capital of s1,00O.0OO. The government financed the plant to the extent of S1, ,405, ,000, represented by loans.
 Criticises Ford Company The Ford Motor company. with con- tracts for 5000 Liberty motors which it expects to complete by the end or January. should make a profit of So,- | 375. GOO. MT. Hughes declared. Its fixed profit, the report says, is more than | $500 an engine, which it can produce at less than S3.200. with the addition of more than s400 per engine as the plants share of the "bogey.' This bogey is set at 5000 for the Ford plant. the company's investment IS said l to be not more than S11,S0o,0O0.
 The Packard Companys proflts on | 6 OOO lihertv motors to be completed py next January. prohab1N will be S6,450,- 900 earned in 1T months, sad the re port. Other profits on minor orders may raise this to SS,0OO,O00, It was sald' The investment represented IS caicu- lated at s11, ,S08,0o0.
 Attorney General Gregory,s comment on these showings was as follows:
 eIt has been charged that eXoroltani n,of;ts +o contractors have been al- lowed. On their face they appear to De unusually liberal, but when 1t IS remem- hered that 60 per cent of them must De maid to the government as income and excess profits taxes, and that most ol the net profits are upon capital invested in huildings and facilities which may ol may not be capable of profitable use TOT an indefinite period after the terinlha- tion of the contract, my cohciusion is that no such profits have been aiioWeo as to justify a charge or pad lalth'
 els Of peeu CSSNS
 Referring to Colonel Deeds, MT Hughes cited Colonel Deeds own tes. timony that he was a stockholder ane officer in a number of Dayton, Ohit concerns which either directly or 1ndi' rectlv were concerned in the airplan' production activities about that city He was an organizer, but not a stoch holder in the Dayton Wright Alrplan' company, and it was to H. E. Talbott, al officer in this company, the reports says. that Colonel Deeds sent lntorma tion on a ruling of the judge advocate general relating to the appraisal Of con tracts, after he had been commlsslonet in the army"
 Lieutenant Colonel Vincent, fo whom criminal prosecution IS recon mended, was found. the report said, t' have authorized payment of sums U the Packard company while ne was stockholder.
 Refers to Ford EmpIoye
 MT. Hughes in his report referred U the retention by Henry Ford Of Car Emde as chief of his drafting depart ment, despite charges of pro-Germal utterances against Emde. After near ing complaints against Enlde, MT Ford's reasons for keeping Emde wer set forth in minutes of the proceeding saying:
 He (Mr. F'ord) felt that it was time of sacrifice that in tn next few years every man would b. called upon to make some sort of sacri flee and that possibly Mr. Emde, Ger man born. was making his sacrifice nov when making drawings for the Libert. motor to be used ultimately agans Germany
 MT Hughes added that this indicated a 'laxity at the Ford plant with respec 10 those of German sympathies whicl was not at all compatible with the in terests of the government"
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