The Washington times., 1920-04-12
ARNYPROBERS'
CHARGE CHI GRAFT.
Millions Wasted in Building
Camps, Says Report-Urges
Suits for Recovery.

With sweeping condemnation of
. the co.t-plus system OF war time con-
struction OF army camps and a rec
, onme ndatIon 10 legal officers OF the
y, government to Institute proceedings
| aKainst contractors for recovery or
! punishment, the report. submitted TO-
! day TO the House by a special war
\ Department expenditures inyestlsat-
ing committee bristles with state
ments as to alleged waste. extrava'
gahce, graft. Incompetence, and du-
pile estion OF work. "
''Ip the Judgment Of the commit :
tee" the report concludes. enough
,Srregularities and fraudulent practices
Jhave been uncovered by the testi-
lmony to warrant the recommendation
htkat Congress refer the report ana
Tho testimony taken TO the Depart
ment of Justice with the request or
4 direction that a complete and thor
tough investigation be made OF all
Icantonment and camp construction
IproJects to the end OF bringing TO
book those responsible for the losses
to the government, and FRAUDS
Through which they occurred. both by
SrecoverIes and merited penalties.
The report recommends perma-
inent law prohibiting for the future
sthe letting OF any contracts for gov
ernment projects under the cost-plus
system, and an -amend dment to the
{ Constitution so amending the defini-
tion of treason as to include that
form Of unconscionable taking or the
; nations resources In time OF war,
which is. commonly known as profit
eering,
An engineering and construction
work for the army. says the report,
should be placed under the Corps OF
Engineers OF the Army. In a war
emergency men employed to direct
work of a military or quasi military
character. such rs !eQuipping troops
or providing facilities for them,
should be temporarily commissioned
in the army. A fixed definite 1respon-
J sibility should be fixed. Power OF the
Secretary of War to suspend REQUIRE
nents for advertising for construc-
tion proposals should be revoked.
Thesreport states that out of an sx-
psnditure Of 100000, 900 for the con-
structiou OF the sixteen national army
Cantonments more than S'SooO,oVo
should have been saved. In addition
there were national guard and special
camps apd hospitals bringing the totai
cost OF the construction to $l,2O0,Ooo'-
600. The report estimates there was
from 80 to so per cent loss because OF
paytment of Justice should be able to
recoyer more than $50,000OOO by
civil suits against contractors on the
national army contracts.
Camp Sherman, OF Chiilicothe, ONO,
is held up as the glaring example or
the awful waste of public funds. Out
Of an expenditure OF 'Sl3,oOO,opo on
this project the committee, estimates
that SIS, 900, 900 might have been saved
if. the contractors had been neid III
check from their riot of extravagances
or an estimate of 50,o0o.ooo feet OF
lumber. used at Camp Sherman II rs
aimed uthat at least 1z50Q,0oo feet
were wasted. Much Of this LUMBER
was burned wantonly. Roofing ma
terials. were piled in the sun ana
ruined, or later burned. Tons OF nails
were thrown away. Various forms of
frauds were practiced to get money
from the Government. -
FINAL responsibility for.,eal the
, waste, extravaganza. Sraft, ana Nio-
lations OF law Is placed by the re-
port on Secretary of War Baker, Col.
william A. Sterrett and the emergency
construction committee of the Council
of National Defense. This report ID
signed by Congressmen Mckenzie,
illinois, and McCulloch, Ohio, Repub :
lieaps. The Democratic member OF
the committee. Doremus, Michigan
disagreed and filed a minority report.
Denying any but petty graft and
, defending the cost-plus system OF
! construction in the face of the emerg-
epy, Doremus holds that the Secretary
of War, in view of the emergency tnat
eYisted in 1917 was justified in adopt
ing this system, and that, had II not
becn sdoptcd, American troops would
have persisted with cold or disease in
the winter of 1917 and the German
army would have been in Paris before
American soldiers could have entered
the battle line.