New-York tribune., 1920-10-16
Millions Spent
Wastefully ON
W ar Contracts
Kitchen Utensils at SITS
Apiece and $4,000 foa.
Branding Irons That Never
We're Made Among Items
Shoe Loss $l,36O,lz2
Buildings Erected at Cost of
50, ,o87,2OO Sold Back to
One Firm for 100000

The following criticize is the third Of
series revealing achat the ineficieNcy
of the Administration cost the people
Of the United States in the conduct of
the World War.
How the War Department under Sec
retary Baker paid about $1,751 each
for ninety eight kitchen utensils or
dered from the Stein-Burn Camp and
Field Equipment Company of Chicago
as the price of cancellation of it's war
contract with that firm is shown in tes-
tlmony before the Congressional COM
mlttee which investigated war cXpcn-
dltures and way claim settlements.
record of contract cancellations
also show that the United States Treas
ury paid about $3,O0O.000 to a Pitts
burgh steel company for toluol and am
monium sulphate never manufactured.
and $4,000 to New York firm for cop
per branding irons which were not
manufactured.
Records show that the War Depart
ment contracted with the Stein-Bu
Company in August, 1913 three
months before the armistice-for fire
less cookers, bread boxes and cooks
chests The company bought a stock
of TIN and steel plating At the time
Of the armlstice the company had de-
Evered only sixty-six freess cookers
seven bread boxes and twenty-five
cooks chests. The War Department al
lowed the company its cost price on
the plating and then sold it back as
scrap iron. The Treasury paid the
company $171, ,6S706 for the ninety
eight kitchen utensils and good inten-
tlons.
Materials Sold as Junk
War Department contract with the
Standard Steel Car Company Of Ham
mond, Ind, for the construction of 964
howitZer carriages was q costly ven
ture. The company erected buildings
IN which to manufacture the product.
These cost the government 50 ,9S7 200
After the armistice the War Depart
ment sold these buildings back to the
company for $G00,O00. At that time
there were materials in the buildings
whlci had cost the government $5,55S,-
600. These materials were resold to
the company as junk for 100000. Up
to the armlstice not single hoWitzer
carriage had been delivered by the
company but the Ordnance Department
requested that eco of these be finished
Records show that the 900 carriages
cost the government $I85S2.42S.S8.
Edmund A. Russell, OF Lake Forest
Ill, chairman of the Chicago district
claims board for the War Department,
testified regarding the howitzer car
riage contract. He said that $4,000
was the price agreed upon by the car
company and the War Department for
each carriage, and the original con-
tract called for 964 carriages. The car
company was to receive fixed profit of
81 900 on each carriage regardless of
final cost
Representative Albert Jeffries. of Ne
braska, who intelrcgated Mr. Russell,
elected from the witness that there
was greet deal Of criticism regarding
this contract
Mr.. Russell-Ycs. sir, there was a
great deal of criticism.
Mr.. Jeffries About when was that
agreed to-
Mr. Russcll-August, 1913.
The witness affirmed that the armi
sticc caused the contract to be can
celed but the government neverthc-
less had the company finish two hun
dred carriages, which figured in final
costs about S23, 900 each or q little
moro than half the original estimate
on which $4,000 profit per carriage was
figured.
$4,000 branding Irons
In Augu It, 1918, the War Department
contracted with the Jones-Laugh
Steel Company Of Pittsburgh for the
companys estimated output Of 21,0O0
tons ot ammonium sulphatc per year
at $50 ton and $4,000 gallons of
toluol year at $50 a gallon. The
contract operated two years, making
the departments obligation to buy
$4,000 tons of the former and 100000
gallons OF the latter product.
When the armistice arrived, three
months later, the steel company had
not delivered a ton of sulphate or d
gallon of toluol. The company, how
ever claimed a loss of profit. The
War Department settled the claim for
$3.50 Ol0.39.
In September, 1918, two months be-
fore the armistice, the War Depart
ment contracted with Henry Moss &
Co. of New York for 195 900 branding
irons. The specifications required that
these irons should be made Of conner.
which was then scarce and expensive
One hundred aud ninety five thousand
branding irons were about one iron
for every two horses in the army.
The Moss company purchased 1882
pounds of copper. The asmstce eradi-
Gated the need for branding irons and
the contract was cancelled. The com
pany delivered its bill for loss of
profit The copper had cost the com
pany 3912 cents pound, and the War
Department compensated the firm at
that price The department then sold
the 80 Il cent copper back to the COM
panv tor II cents a pound. War Dc
partmcnt recosds show that the com
pany got $4,000 for loss of profit.
Secretary Ct War Baker reported at
the beginning Of the last session Of