New-York tribune., 1919-08-18
Government Still
Owes Two Billions
On War Contracts
Liquidation of All Except
Ordnance Deals To Be
Completed by End of the
Month, Board Predicts
NeU York Tribuns
1P1Sh1rUt0n Ryrcru

WASHINGTON, Aug 17.-While
more than $2,0O0,0OOOO0 on war con-
tracts remains unpaid by the govern
ment, large portion of which are for
ordnance for the army, the War De-
partment Claims Board Ro-day an
nounced that within another month the
contracts Of all departments, except
Ordnance, will be completely met, so
rapid is the liquidating machinery now
functioning
1t is frankly admitted by War De-
partment officials that the payment OF
contractors who engaged in the manu-
facture of ordnance for the army is
proceeding slowly. Hope was ex-
pressed to-day, however, that by the
end OF the month virtually all the pre-
llmlnary work toward settlement of
these war bills would be completed,
and within another month the actual
payment of the numerous firms in
volved in the ordnance industry would
be accomplished.
Progress of Liquidation Shown
Recent statistics compiled by the
War Department show the task Of
contract liquidation has progressed as
Nitrate division contracts. 81 per
cent paid.
Engineer corps contracts, 95 per
cent paid.
"Chemical warfare contracts, 81 per
cent paid.
Signal corps contracts, II per cent
paid.
purchase and storage contracts, 70
per cent paid.
"Air service contracts. 60 per Gems
paid
"Ordnance Department contracts.
% per cent paid"
The total bill Of the army for sup
plies contracted for by those seven
purchasing agencies amounted to ap-
proximately $500 900 900. Of this
amount more than Sl.70O, 100000 is the
sum representing the liquidated por-
ton. In citing these figures Claims
Board officials assert progress has been
fairly rapid, when it is considered that
at least month was occupied in set
ting up the machinery by which the
claims were to be paid.
During the last three months the
board has lquidated approximately
10000 contracts, averaging more than
250 each week, with a total weekly
payment of amounts ranging from
$5,000,000 to $4,000 900
Eighty Per Cent Wound Up
1t was stated at the War Department
to-day that contracts liquidatcd up un-
til August 1 totaled so per cent of the
number outstanding at the conclusion
of hostilities.
"Suspended contracts awaiting liq-
uidatlon." said statement issued by
the Claims Board, amount to S2,O12,-
635 900, of which rs per cent pertain
to ordnance, 10 per cent to purchase
and storage and 10 per cent to the air
service. Assuming that future lquda-
tions in each bureau can be effected
at the same rate OF cost as has OBJ
tanned in the past, payments of about
1926 6,398000 will be needed to secure
the relinquishment of contracts still
outstanding"
AS a further indication of the prog
ress made by the department in pay
ment of contractors. it was stated to-
day that on May 10 1851 contracts.
representing value of SS40, ,557 900,
had been Hquidated. On July 2G the
total number OF contracts liquidated d
had jumped to 1896, with the pay
ments aggregating the sum OF Sl,733,-
S72 ,00O. The total value of all war
contracts amounts to S3.746 ,5O7 900.
and the total number of contracts
originally outstanding was 24,925