The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1920-04-12
Criminal Prosecutions Demand
ed in Report on Erection
of Camps and Canton
mentS.
COST PLUS SYSTEM
Loss of Four Millions to Government
in Building Of Camp Dodge at
Des Moines,
Iowa.
IBy Herbert-W. Walker, United Press
Staff Correspondent]

[By Herbert-W. Walker, United Press
| Staff Correspondent
WASHINGTON April 12.-Criminal
prosecutions by the department Q.
Justice and suits to recover $7800o,-
600, alleged to represent the govern
ment losses through fraud, waste and
extravaganza in the cost-plus system
Of contracts for building the sixteen
national army contonments, we're &c
manded today in report to the mousse
| by the subcommittee on camps ana
cantonments of the war department
expenditures committee
! The report, which is the result OF
nearly a years investigation, recoHi-
imends an amendments to the consul
tuition making profteering in war time
/ treason and legislation to prohibit all
| cost plus contracts. Representative
! Mckenzie, Illinois, and Representative
Mccullough, Ohio, republican mem
hers of the subcommittee, signed the
report, while Representative Doremus'
Michigan, member, in minority re-
port, declared there was found very
little" evidence of fraud and had the
cost plus system not been adopted
'the Germans would have been in Far
is before our soldiers reached the pat
tie lines"
! OF all camps and hospitals built
during the war at cost OF approx
mately $780, 100000, the majority re-
port estimates that the alleged loss
to the government from fraud and ex-
Itrayagance due to the cost-plus sys-
fem ranged from 80 to so per cent.
The committee auG@ed the contracts
of the sixteen national army camps
and claims that the loss to the gov
ernment was s7S,O00,000 out of a to-
tai of s2O6, 100000. Skilled contrac-
tors have gone over the accounts and
determined these figures, which should
he recovered for the treasury, the re-
port says. :.
Responsibility for the losses is
placed on Secretary OF war BAKER
who is said by the majority OF the
subcommittee to have approved tne
contracts both as head of the war de-
nartment and the council OF natlonal
defense.
The majority report gives scores OF
instances of alleged waste in the cost
nlus system and specifically charges
a. Bentley and Sons Company, VINO
held the contract for Camp Sherman,
Chilicothe, Ohio, with receiving 1llegai
payments to the extent or Slo9'5 '5'I:''.
"Some of the most glaring examples
of waste of public funds are found at
Camp Sherman and Camp Grant, LII.
nois," the report claims.
A table is given showing the amount
the. war department paid for the SIX
teen national army camps ana lhe
proper cost as determined by the com
mittee. It shows the following al
legged losses:
Maede. Md, s7,o73,327; Camp Upton,
N. Y, s5,s40,911? Camp Grant, ~,
s5.57O,O76: Camp Pike, Ark. s5,132,-
O31; Camp Custer, Mich, s5,oS6,649;
Camp Sherman, Ohio. s5,O34,o95;
Camp Dix. N. j., s4,9s1,5o3; Camp
Jackson, S. c. s4,sSs,4s3; Camp De.
vens, Mass, s4,6s1,339; Camp Fun
ston, Kans.. s4451, 1897; Camp Gordon,
Ga, s4,422,99; Camp Dodge. Iowa
is3,93S,745; Camp Lewis. Washn.,
s3,5O7,s39; Camp Taylor, Ky, s3,ss9,-
225: Camp Travis, Texas, $3,346,173.