Every evening, Wilmington daily commercial., 1919-12-16
COP. WAR COST PROBERS
CHARGE CARELESS WASTE
Claims Not Sufficiently Guarded /;
Government Deprived OF Large
Sums, is Charge.

Washington, Dec. Representative
Graham, Republican, Illinois, chairman
of the select committee investigating ox-
pendtures by the War Department, IN u
speech today IN the House, reiterate
charges he made recently tbat interests OF
the government IN many war claim set
Elements have not been sufficiently guard
ed, adding that "in many cases the gov
eminent has been deprived OF large sums
Of money to which it rightfully Is entitled. .
Large sums have been allowed con
tractors through unfair salvagc values
for raw materials, and government Of.
ficials charged with the responsibility o.
adjusting claims have not exercised SUI
ficient vigilance in protecting government
interests, MIR. Graham charged. He urged
submission of all claims settled or pend
ing with the War Department To an ltn-
partial board for review and final settle
ment.
Iron Secretary Bakers report Of
settlements" Chairman Graham said,
"the original answer was erroneous
and the committee instructed an account
ant 10 review the figures given by the
secretary. After an extended investiga-
ton the accountant reported that the
amounts expended by the war depart
ment, as given by Secretary Baker, are
off balance from sl7i ,5S2.37 rs a mini-
mum to s1s4 ,945, ,03S, as a maximum.
Fifty per cent of informal contracts
suspended by the armistice have been
adjusted with damages TO the war dr.
partment, Representative Graham con
tinued. taIn investigating the various
matters it has not been possible 10 ind
anywhere o complete record OF the tran
action. There were private cOnversa-
tions BY the various and so-called tech
nical experts with merchants and business
men and with claimants, AS result Of
which claims were allowed and large
sums Of money paid. When it is attempt
cd 10 ascertain the exact basis OF these
settlements no record is to be found. On
the settlement Of the American Can Com
pany's contract the speaker said, the
government lost fully IL per cent on
500, 732, the cost Of tin plate, or Sl47,-
SID moro than it should have lost
Representative Graham attacked the
method Of sale by the war department q
100, 100000 pounds Of surplus copper held
when tho armistice was signed Copper
producers, he said, were paid large sums
in excess Of correct amounts due for gov
ernment copper during the var.
1T appears that the producers, IN the
sale Of their product through the United
Metals Company, secured great and sub
stantiaI profits and, in the purchase Of the
surplus copper from the government
through this same single agency, gained
control Of the market and made sub
stantial prof1ts upon the same q second
time The copper producers were by com
binations agreed 20 by the government
enabled to secure large profits which
they otherwise would not have secured.
The government also made it possibie Tor
certain copper prod ucers 70 maintain
and largely increase the price Of copper 10
the public since the signing of the arTnIs-
tire by disposing Of is surplus to COM
binatIon Of such producers.
Settlement Of the claim Of the stand
ard Steel Car Company, Mr.. Graham also
charged. was made without an audit and
approximately 81 200, 900 was paid TO the
claimant on the final settlement.
The committee is convinced. ne
continued. that the alleged settlement is
unjust and unfair to the government and
that in its making the interests Of the
government have not been properly de
Tended That il is also tlnctured with
fraud there can he little doubt. That
large amounts Of property have been dis
posed Of in this settlement which the
government should have retained L also
obvious It is equally As apparent that
cert tain officers and agents OF the United
States who were charged with direct re-
sponsibility in the matter, failed TO do the
things they should have done To protect
the interests Of the government, or CON
nived and confederated with the claimant
or were so carelessof their duties as TO
all for he most vecre criti 4 sm.