Middletown transcript., 1919-04-05
~ NEWTON D. BAKER.
Secretary Of War.

Secretary Of War.
When NE armistice was signed On
the 18th Of November there were out
standing some seven billions Of dollars
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
fr.t question which the war depart
ment bad to face was that OF the can
collation. of those contracts.
It was clear that if we simply LOOK
a knife and cut off all the manufactur-
ing facilities that were engaged 10
work for the War Department. sharply
IN 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 II
was imperative that reasonable time
;,e provided for those industries to re-
organize themselves on a peace basis.
Therefore, a plan was devised by
which, a. the first step. we cut OF
overtime employment so as to reduce
production without producing disor-
ga1fization. The next step was to view
this vast mass Of contracts in an Ct
fort to find out how far the military
necessities Of the country would per
nit them to be reduced and how rapid
" they might be reduced.
We have 80 far suspended opera
ton 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 $5,SOO,OOO,0O0 Of war
materials.
That does not mean, of course. that
that entire sum will be saved. 1t Is
involved in something over $4,000 sep
arate contracts. and Of those contracts
we have already settled 1900. effecting
a saving to the Government on the
1900 already settled Of 51,OOO,WD,
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 81
$29,OOO,OOO.
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 he able
to save a very large part of this tota
of nearly $8,OOO,OO0,OO0 involved II
contracts for the production Of wal
materials.
Obviously, with 10000 contracts t.
readjust or cancel, either In whole o.
in part. It would have taken more
than a lifetime, II we had undertaken
by some central bureau here in Wash
ington to review each contract separ
ate]v and make special determine
ton about it.
So, instead Of that, district boards
have been established all through tn
country in the various bureaus Of TN
War Department dealing with war sup
plies, So that a manufacturer In an!
city, whether Of ordnance or quarter
master material does not have to com
to Washington for adjustment OF hi
contract. Tie goes to the local did
trict board
If he and the district board Cal
agree upon the terms Of the caDcella
ton or modification of the cOntrac
that agreement is written In the furl
of a ton and sent dow
to Washington for the Board q
Claims, and is here passed upon by tn
Board Of Claims of the bureau OF d
vision Of Ordnance, Quartermaste
Signal Corps or whatever 1t may b.
Now. il they cannot agree there is al
other agency set up IN Washington
known as the Board Of Contract Al
justment, composed Of three emineE
men. So the contractor does not hav
to take the judgment Of the local di
trict board, but he can lay his matter
before disinterested tribunal here
Washington OF course, he does AZ
have to accept the decision Of th
Board Of Contract Adjustment II b
prefers he can 60 to the Court {
Claims and start litigation which /
however. always unfortunate, becaul
of the tegnth Of time It takes Bas TIT
remedy Is no. closed to him.
We have haG this thought II min
from the beginning that the most in
portant thing the War Departmer
could do, % far as industry az. con
mercs are concerned, is to, bring abo,
q speedy adjustment Of these claim
in order that the people Of this conntr
who are engaged in industry anG con
mercs may know exactly wha, the
can expect In the way Of paymer
from the Government just how mue
they can rely upon II opening up the
new business or re0ryanized bushes
)nc & speedily set about doing II