The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-18
Food, Clothing and Other
Necessities Go at Loss
and More Bought.
HUGE STOCKS PILE UP
Brokers' Purchase With
out Cash and Sell Before
Delivery.
BUILDING NEEDS THERE
Investigation by New York
Herald DisclOses Extrav-
agance on Colossal Scale.
BUILDING NEEDS THERE

How fortunes In useful materials are
being permitted to go TO waste In
army warehouses while the public
cries for them In vain; how wanton
extravaganza continues 10 mark pur-
chases made for the War Department;
how fayorite profiteers are allowed by
the Democratic Administration to reas
golden harvests through army sales,
Is revealed in reports which THE NEw
York HERALD has investigated care
fully and has found to be supported
by an abundance of evidence.
Just how much profiteers have made
through selling articles to the Gov
eminent already in stock In great
abundance. and through the purchase
of Surplus" stocks at ridiculously
small rates and subsequent resale at
profits amounting in GONE cases to
1000 per cent. il would be impossible
to estimate
Some idea, however, OF tho great
profits reaped by favored ones may bs
obtained from transaction by which
large concern OF this city, according
to admissions made by its own err.
ployees. purchased 100000 raincoats
from the Government at 25 cents each
and resoid them to chain raincoat stores
here at ten times that amount. or $3.50
each. thus making n profit OF s675.000,
or 500 per cent. on its investment. And
this same concern had sold rreviorsiy
these same raincoats TO the Government
at good profit over and above the cost
of manufacture.
Friend Of Cabinet Member.
This same concern also is said to have
bought back from the Government
100000 yards OF olive drab shirting at
loss to the Government of from IL to
IL cents yard. or from 100000 to
$4,000 on the whole lot. In trade
gossip It is said that the head OF this
concern ia SO we'll known 10 a member
OF the Presidents Cabinet that he can
walk into his office In Washington at
any time without knocking"
Another instance along this line 10
that of a former Lieutenant in the army
who received his discharge from the
supply base at Fifty-ninth street and
First avenue. Brooklyn. and promptly
went into business as n dealer in army
surplus goods. He Is said on good
authority 10 have purchased 100000
knitted neck mufflers at so cents each.
although the price paid for them by the
Government was 81 so each From this
same base 2,75o.ooO packages OF candy
were sold to local candy broker at
one cent each. and resold by him 10
dealers at q profit equal 70 many times
his investment
Despite the fact that innunerable in
stances OF this kind are reported, II In
by no means easy TO get goods out OF
the army bases at such rates. and one
must stand IN" we'll 10 enter into any
negotiations. An amazing thing about IL
all is that many OF these brokers put no
cash at all into the deal They merely
purchase the goods upon condition that
they are to pay FOR II when they have IL
carted away. Then they resell Il TO
others at enormous profits. and these
others pay the dealer before he pays
the Government. Thus. many men have
cleaned a rich harvest with no invest
ment at all a no assets 10 begin with
other than the necessary influence.
Building Materials wasted.
But this kind Of wholesale waste Is but
one phase OF the situation which exists
under supervision OF the War Depart
ment to-day. Instance are reported
where large fortune In materials Of all
sorts ana descriptions is being allowed
TO lay In idleness In army storehouses
throughout the country.
In the three huge buildings at the
army supply base In Brooklyn there are
az the present time acres upon acres OF
building materials that never win be
used by the army. and which II offered
at public sale. would he OF considerable
help in the present housing crisis. There
are plumbers supplies In quantities alto
gether too large for the needs OF the
present army.
There are In this same warehouse
paints and Varnishos enough 90 supply
all of the Interior decorators in this city
and enough surplus iess OF nails 20 sup
ply the whole building trade There are
tools which cannot be purchased on the
market and OF which workingfnen are In
great need.
Electric supplies Of every sort are iy-
ing about In the greatest abundance and
there is little or no likelihood. according
60 men at tho base. OF the Government
having any Use for the greater part Of
them. There are ladders. hammers. chis-
els, wrenches and every kind of article
the carpenter. steamtltter OF other house
hold worker could want boarded there
despite the fact that the scarcity and
cost OF these same things on the general
market arc such that & is reflected In the
cost OF all household repairs and I'm
Canned Foods In Abundance.
Employees I'm these buildings say that
n YOU walk through every floor you viii
have walked twelve miles. and the visitor
does not doubt their word. yet floor after
floor ls crannied rom end 10 end tith
Just the things that the public nee,f 70