South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-03-23

llOi VI HDSllllleSs Wnllb many OF
them did not contain such provisions
most OF them debut the quest
ton we had TO consider first was how
to go about cancelling these con-
tracts.
1T was clear that IL we simply
took knife and cut off all the man.
ufacturing facilities that were en-
gagged in work for the war depart
ment, sharply on the 18th day of
November. we would close factories
in every state and city in the union.
which would throw thousands Of
workmen out Of employment; and
therefore, that il was imperative that
a reasonable time be provided for
those industries TO reorganize them
selves on a peace basis. Many of
them had taken out the tools with
which they had manufactured ar
ticles for civilian consumption, and
had put in their stead special tools
and machinery for the war depart
ment's work; and. therefore, il was
at once apparent that the retooling
Of factories would be necessary. IN
less we were to precipitate a perfect
~ chaotic condition in the industry
of the country.
Bore Prosperity i'm Mind.
Therefore, a plan was devised
by which. as the first step. we cut
off overtime. The secretary of the
navy and I agreed upon that as the
! first step. We cut off overtime en-
| ployment, so as TO reduce production
without producing disorganization.
The next step was to view this
vast mass of contracts in an effort
10 find out how far the military nee
essities of the country would permit
them TO be reduced and how rapidly
they might be reduced.
THE net effect of that effort is
what I want 10 get into your minds,
rather than the details of it. We
have so far suspended operations up
on contracts which would cost So
| $4,000 to complete; so that in
the matter of saving, the war de-
| partment-and 1 am, of course.
dealing only with the bureaus of the
war department--has suspended op-
erations under contracts or has de-
termined to cancel contracts which
in net effect, covered the production
TO the extent of $500, 000, 900 of
war material. That does not mean
of course, that that entire sum will
be saved. II is involved in some
thing over 10000 separate contracts,
and of those contracts we have al
ready settled $500. effecting a saw
ing to the government of s151, 1000
| 900, while paying TO the contractors
who still had some equity in the mat
ter Of new facilities created or ma
terials in the process of manufacture
the same of 100000
] That process of settlement began
on the 18th day Of November, and
( IL is proceeding still rapidly; and the
hope Of the war department is that,
without DISCRIMINATION of industry
without turning workers into the
street, without congesting the labor
market. and thereby disorganizing
the industrial situation, we will be
able to save a very large part OF the
total OF nearly $4,000. 100000 which
at the time Of the signing of the
iarmistice was involved in contracts
for. production of war materials.
Proves Monster Task.
Now the process-and l think
this may be important. although ]
! feel that it is not especially inter-
esting. because you may be asked
questions about 1.-THE process of
settlement of these questions
obviously with 5000 contracts
to readjust OF cancel, either in whole
or in part. it would have taken
more than the lifetime of the
lyoungesta man here. if he lived as
long as we wish him to live. if we
had undertaken by some central bu-
reau here in Washington to review
each contract separately and make
o special determination about 1t.
Those 10000 contracts would, of
course. have taken great many
years TO solve in any such way. SO
instead of that. district boards have
been established all through the
country in the various bureaus Of
the war department dealing with war
/ supplies, so that a manufactures in
any one Of your cities. whether of
! ordnance or quartermaster mate
rial does not have TO come TO Wash
lington for an adjustment of his con-
tract. He goes to his local district
1 board. and there he surveys with
them the obligations he has as
sumed those which the government
has assumed with him, the equities
which he has growing out of the in
crease in his plant facilities or his
stock Of raw materials. or those in
process of manufacture, and takes
up all the legal and equitable con-
siderations that are involved in the
cancellation OF his contract.
Process OF Appeal.
"If he and the district board can
agree upon the terIns of the cancel
lation or modification of the con-
tract, that agreement is written in
the form of a recommendation ard
sent down 10 Washington for the
board Of claims. and is here passed
upon by the board Of claims in the
bureau or division OF ordnance
quartermaster. signal corps, or what
ever il may be. which is organized
here in Washington TO pass upon
claims OF that kind. Now. If they
cannot agree there is another
/ ]