Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-12-16
LACK OF VIGILANCE
IN ADJUSTING WAR
CLAIMS CHARGED
Mr.. Graham Tells House
U. S. Was Deprived of
Large Sums.

Representative Graham, republican,
Illinois. chairman of the select commit
tee Investigating expenditures by the
War Department, in speech today in
the House reiterated charges he made
recently that interests of the govern
ment In many war claim settlements
have not been sufficiently guarded, add
ing that in many cases the government
has been deprived of large sums of
money to which it rightfully is entitled"
Large sums have been allowed con-
tractors through unfair salvage values
for raw materials. ana government offi-
Gals. charged with the responsibility of
adjusting claims. have not exercised
sufficient vigilance in protecting gov
he urged submission or all claims set
tied or pending with the War DEPART
ment to an impartial board for review
and final settlement.
Quotes MT. Bakers Report.
From Secretary Bakers report of
settlement" Chairman Graham said
the original answer was erroneous ana
the committee instructed an accountant
to review the figures given by the Sec
rotary After an extended Investiga-
uon the accountant reported that the
amounts expended by the War Depart
on balance from s171,5S23 as a mini
mum to 1S4.945.93S as a maximum
Fifty per cent of informal con-
tracts suspended by the armistice
have been adjusted with damages to
the War Department., Representative
Graham continued. an investigating
the various matters it has not been
possible to find anywhere a complete
record of the transaction. There were
private conversations by the various
and so-called technical experts with
merchants and business men and with
claimants, as a result of which claims
were allowed and large sums of
money paid. When it is attempted to
ascertain the exact basis of these set
Elements no record is to be found"
Loss on Can Company's Contract.
On the settlement Of the American
Can Company's contract, the speaker
per cent on sse7,7s2, the cost Of tin
plate, or s147,514 more than it should
have lost
Representative Graham attacked the
method of sale by the War Depart
copper held when the armistice was
signed. Copper producers. he said,
were paid large sums in excess of cor
rect amounts due for government cop
per during the war
1t appears that the producers in the
sale of their product through the
United Metals Company secured great
and substantial profits, and in the
purchase of the surplus copper from
the government through this same
single agency gained control of the
market and made substantial profit &
upon the same second time. The COP
per producers were. by combinations
agreed to by the government. enabled
to secure large profits which they
otherwise would not have secured
The government also made it possible
for certain copper producers to main
tain and largely increase the price of
copper to the public since the signing
OF the armistice by disposing OF it's
surplus to combination Of such pro-
ducers."
Settlement Of the claim of the
Standard Steel Car Company. MT
Graham also charged, was made with
out an audit, and approximately ST.
100000 was paid to the claimant on
the final settlement.
The committee is convinced" he
continued, that the alleged settle
ment is unjust and unfair to the gov
eminent and that in it's making the
interests of the government have not
been properly defended That il ia
also tinctured with fraud there can
be little doubt. That large amounts
of property have been disposed of in
this settlement which the government
should have retained is also obvious.
1t is equally apparent that certain
States who were charged with direct
responsibility in the matter failed
to do the things they should have
done to protect the interests of the
government or connfved and confed-
Grated with the claimant or were SO
careless Of their duties as to call for
the most severe criticism"