Newark post., 1919-04-09
BY NEWTON D. BAKER,
Secretary of War.

the 18th of November there were out
of contracts in the War Department.
The signing of the armistice made it,
of course, obvious that very large
part of the war material thus under
contract would not be needed, and the
first question which the war depart
ment had to face was that of the cam
collation. of those contracts.
1t was clear that if We simply took
a knife and cut off all the manufacture
ing facilities that were engaged in
work for the War Department, sharply
on the 18th day of November, we
would close factories in every state
and city of the Union, which would
throw thousands of wOrkmen out Of
employment; and. therefore, that it
was imperative that reasonable time
be provided for those industries to re-
organize themselves on peace basis.
Therefore, a plan was devised by
which, as the first step, we cut off
overtime employment so as to reduce
production without producing disor-
ganization. The next step was to view
this vast mass Of contracts in an eff
fort to find out how far the military
necessities of the country would per-
nit them to be reduced and how rapid
ly they might be reduced.
We have so far suspended opera
tion upon contracts which would have
cost five billion eight hundred and
twenty-nine millions of dollars TO COM
plete: so that in the matter of saving,
the War Department has suspended
operations under contracts or has de-
termined to cancel contracts which,
in net effect, covered production to
the extent Of S5,SOO,0OOO0O of war
materials.
That does not mean, of course, that
that entire sum will be saved. 1t Is
involved in something over 10000 sep
arate contracts, and of those contracts
we have already settled 1900, effecting
saving to the Government on the
1900 already settled of S151,OO0,0OO,
while paying to the contractors, who
still had some equity in the matter
of new facilities created or materials
in process of manufacture, the sum OF
S29.OO0,O0O
The hope of the War Department
is that. without disOrganizing industry,
without turning workers into the
street, without cOngesting the labor
market, and thereby disOrganizing the
industrial situation, we will be able
to save very large part of this total
of nearly S6,0OO,OO00O0 involved in
contracts for the production of war
materials.
Obviously, with 10000 contracts to
readiust or cancel, either in whole or
in part. It would have taken more
than a lifetime, if we had undertaken
by some central bureau here in Wash
ington to review each contract separ-
ately and make a special determine
tiOn about it.
So, instead of that, district boards
have been established all through the
country in the various bureaus of the
War Department dealing with war sup
plies. so that a manufacturer In any
city, whether of ordnance or quarter
master material does not have to come
to Washington for adjustment OF his
contract. He goes to the local dis
trict board.
If he and the district board car
agree upon the terms Of the cancella
ton or modification of the contract
that agreement is written in the form
of a recommendation and sent dOwr
to Washington for the Board o
Claims, and is here passed upon by th'
Board of Claims of the bureau or di
vision of Ordnance, Quartermaster
Signal Corps, or whatever it may be
Now, if they cannot agree there is an
other agency set up in Washington
known as the Board of Contract Ad
justment, composed Of three eminen
men. So the contractor does not hav
to take the judgment of 1.-THE local dis
trict board, but he can lay his matter
before disinterested tribunal here il
Washington. OF course, he does no
have TO accept the decision of tn
Board of Contract Adjustment If h
prefers he can go to the Court o
Claims and start litigation which is
however, always unfortunate, becauS
of the legnth of time it takes but tina
remedy is not closed to him.
We have had this thought in mint
from the beginning, that the most i'm
portant thing the War Department
could do, so far as industry and com
merce are concerned. is to bring abou
= speedy adjustment of these claims
n order that the people of this countr,
Who are engaged in industry and com
merce may know exactly what the,
can expect in the way of paymen
from the Government, just how mucl
hey can rely upon in opening up thei
new business or reorganized business