The Bridgeport times and evening farmer., 1920-01-08
COMMITTEES EFFORTS ARE
 NOT SUCCESS
Attempt to Show Cost Plus System Costly Is g
 Failure
EXPENDITURE
 NOT EXCESSIVE
Practice Being Followed By Many Big Business
 Concerns

WaSn1nSCO1, U. L., Jan. i.-Ci- forts of the Mckenzie subcommittee of the House committee on Military Affairs to show that the "cost plus system of letting contracts for con struction of army camps was a costly experiment now promise to end in failure. The committee has developed little in support of that contention, and recent testimony be- fore the House investigators was that a large number of large business con- cerns throughout the country have adopted the policy since the war of letting construction contracts on the cost-plus. rather than lump sum, basis.
 The Mckenzie subcommittee is one of the several smelling com mittees' named by the Republicans of the House to investigate the con duct of the war and the administra- tion of Secretary Baker. This par ticular subcommittee is charged specifically with an inquiry into con struction costs at the various can tonments, and early in its hearings began to attack directly and indi- ] rectly the cost-plus contracts.
 When it became necessary at the | outbreak of the war to hurriedly construct more than two dozen Ma | tional Army and National Guard camps in various sections of the country, the construction division of l the Quartermaster's Department did not have sufficient organization to permit the government itself to build such a large number of cantonments. | Consequently, since time was the inn portant factor, the department called upon various contractors to put their l already perfected organizations at l the service of the government. Contracts with such builders were | made on a basis of cost, plus a fee | for the services of the skilled organ ! ization of the contractors. The Gov ernment paid for materials and car ried on it's own payrolls the organ | ization of the contractor. The Gov | ernment also had army officers 9t l each cantonment to see that the con tractors compiled with the specif- l cations.
 l On completion of the cantonment 1 the contra ctor and various sub-con. tractors received a fee, which was { small percentage of the total cost O
 the camp. It was stipulated that tht maximum fee in any case should no
 exceed S250,O00. As a rule, testi
 mony before the House committe,
 has shown that the army camp were constructed in a remarkabl! short period of time, and the cost
 plus system worked advantageously
 to the government and the virtua ] drafting of the contra ctor's organiza
 tions throughout the United State
 saved both time and money.
 One of the recent witnesses befor,
 the House Investigating sub-commif
 tee was former It Col J. Normal 1 Pease, who was constructing quarter
 master at Camp Gordon, Colona | Pease was commissioned in tht
 constructing division because of hi
 ability as an engineer and builder
 and was summoned to Washington tt
 accept the commission ,arly in tn,
 war. Since his discharge he ha 1 formed a connection with one of tn,
 greatest engineering concerns in thu / Uited States.
 Members of the House committe.
 asked It. Col Pease, who testified
 after his discharge and as q civilian
 if he did not regard the cost pIu
 system as a bad thing
 'I think the cost plus plan wa
 of advantage to the Government a
 Camp Gordon and elsewhere" sai,
 MT Pease. "Under the cost-plus pla,
 contractor is not forced to mak
 excessively high bids to take care o 1 possible set5acks and contingencies
 As an illustration, the terrain q
 Camp Gordon produced three dif