Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-11-01


manufacturers we'll qualified by or.
ganizatfon and experience could not
get orders, while others apparently
with few qualifications, II any, did
succeed in getting them. and that
there were confusion and waste In the
Enormous Profits Made.
Prodts In some instances. Mr..
though Attorney General Gregory
points out that 90 per cent Of these
profits revert to the government IN
the form Of war taxes. ana expresses
allowed ~ to Justify = charge Of bad
faith"
The Dayton-wright Corporation. the
report says, with a capital of $1.000,00O
and government financing to the ex.s
tent Of t1.4os, has prospects OF
Ford Motor Company, on contracts for
5000 Liberty motors. the report esti-
mates. will make q profit of more than
$5.000,000 on an investment Of not
more than $11.s00.oo0. The Fisher
Body Corporation. with an Investment
of 100000 and government financing
Of 100000. the report says, is esti-
mated to make q profit OF $3.500,000.
The Packard Motor Company: With deh
calculated investment Of $l1,sos.ooo
nAbo . OOalIdbCS LUZ VyVVV ASAoOA nv
tors. is estimated to be about to rea-,
lice profits Of $3.50, 900 on seventeen
months work. The Lincoln Motor
Company. with paid-in capital OF
$S50.0oo ana investment Of $7.150.000.
Of which $3,4s0,oo0 represents items on
which the government pays 40 per
cent depreciation. is estimated to
have tn prospect or in hand profits OF
How Bad Organization Hurt.
For a whole year after the coun-
try entered the war, the report says.
the equipment division Of the Signal
Corps of the Army was badly or
ganized, with "a host Of sections and
departments will ill-def1ned functions,
creating disorder and confusion rather
than sustained, well directed and ex-
pert effort"
Hundreds Of flying cadets, the re-
port says were held at training
camps during the early months of the
war without facilities for training
because there was failure in deliv-
cry Of training planes.
Where Chief Waste Was.
The chief actual wastes from the
original appropriation Of $s4o.0oo.o0
which subsequently was increased.
the report says, was In the abandon
mont OF two types OF afrplanes-one
Of them the much discussed Bristol
and the failure to take advantage Of
salvage from the abandonment. This
waste is computed as amounting to
$24. 000.0 900.
Three Officers Blamed.
While there is no charge Of graft"
the report recommended that criminal
proceedings be brought against three
Army officers on charges Of dealing
with corporations in which they were
financially interested. They are:
Lieut.. Col. J. G. Vincent former vice
president of the Packard Motor Car
Company, and now in charge of the
airplane division OF the aircraft pro-
duction bureau; Lieut. Col. George w.
Mixter, stakeholder in the Curtiss
production manager Of the aircraft
bureau, and Lieut.. Samuel B. Vroo-
man, jr., inspector Of propeller lum-
ber- and q stockholder in the S. D.
Vroon1an Company Of Philadelphia
Court-Martial Recommended.
Recommendation also is made that
Col. Edward A Deeds, d member Of
the original aircraft board, and the
subjectof much criticism that brought
on the inquiry, be brought before
ourt-martial for sending confidential
War Department information to for
mer business associates at Dayton,
Ohio, and for sponsoring "a grossly
misleading statement" last February
about progress OF production.
The report exonerates from any
wrongdoing the civilian personnel Of
the aircraft production board.
Praise for Ryan and Potter.
M cri$;c}an, voo oHorod ~ +ha
management Of aircraft affairs since
the reorganization Of last May, when
John D. Ryan was placed in charge
Of production. In concluding his re-
port Mr.. Hughes said that ut should
be said that under the direction Of
Potter. assistant director of aircraft
production) there has been improve
ment in organisation and progress
has been made in gratifying measure"
Charges Brought Out.
Mr.. Hughes declared tho charges
substantiated. in part, were:
Delay In getting planes from the
allies and in preparing specifications
for their reproduction.
Frequent changing Of plans, both Of
airplanes and liberty motors.
High profits to manufacturers, both
Of planes and engines.
That in pushing for speed in pro-
duction, confusion and waste occur
red in plants.
That some manufacturers we'll quail
fed for production were not given con-
tracts, while others poorly prepared
were given orders. and
That many plants engaged in air
plane manufacture lacked knowledge
or the original appropriation Of
$691. 581 1856. the report showed that
disbursements reported to last June
80. including advances for building
plants and other expenses. amounted
to $3.50. ooo. 900. and t27s 900. 900 Of the
OF the total expenditures $155,000,000
went for manufacture of airplanes and
engines at home and overseas.
Number Of Planes Delivered.
AS to actual performances, the re-
port showed that to last June 80 6.171
airplanes had been delivered by man
ufacturers, Of which 5.e1S were train
ing planes and $50 combat and bomb
time totaled 1883, Of which 1850
were liberty motors, the original pro-
gram for which called for 1900 by
Up to october II. the report said.
training, 2.1s7 for advanced training
and 1850 for observation and bomb
ing; also 24,672 engines had been I'm
ished, Of which $3.50 were liberty
motors. OF the liberty motor Mr..
Hughes said: TT now appears conclu-
siveiy established that the liberty en-
gine 10 . great success for observe
ton and bombing planes"
Pooling Of Patent Rights.