New-York tribune., 1920-11-01
Baker Denies
Huge Losses
On War Sales
S4.675,342.8 .88I.15 Saved to
Taxpayers by Disposing of
Goods and Settling Claims
incident to Hostilities
Tells of Transactions
SAYS Newspaper Charges I'm
founded; y. S. Prepared
for Force of 100000

WASHINGTON, Oct. 31-The War
Department to-day answered charges
that the government had sustained
great loss through the sale OF surplus
war supplies with the claim that it
had Saved more than s4,6I5,3 ,SS1 10
10 the taxpayers OF this country
through the sale OF such supplies and
settlements of claims"
The department made public state
ment of several thousand words in
which it took up in detail charges
made recently in number Of news
papers. Chara cterizing these charges
Ns "unfou ndcd,' the statement said
mat to have proper understanding
Of the situation it must be rcmem-
oered' that the department in making
Its purchases of war materials was
contemplating field force Of 5,00O,-
600 men,
Huge Sales Overseas
Declaring tina, how long it would
be necessary to maintain this force in
the field was a question which could
lot be answered, the statement said
hat had the war CONTINUED another
year the supplies on hand at the sign
lng of the armistice would have been
totally inadequate'
a..
statement added, there would have
been a repetition of the conditions
which existed in the Spanish Ameri-
can War"
The statement asserted that sales
p1 VAr materials over seas aggregated
ESH-. S22.225.S2. France it was stated
purchased goods for S532 800 .o00 and
N addition waived customs duties es-
iima'ed at approximately Sl50,00O, 900
and further assumed the payment Of
$4,000 claims against the United
States arising out Of the American
occupation and use OF installations
and lands.
AS result, therefore. Of the work
Of the United States LIQUIDATION com
nlsSlon the statement said, "the
" ar Department saved to the taxpay-
ers from the sale of surplus Of WAY
materials in Europe $972e23,225 So.
plus the claims for damages which
would have been entered against the
government.
"Thus the claim that the property
whlch mad cost this country $780,
"ss,3V2 was disposed of to the French
government ior $500 900 600, payable
IN ten years. Is entirely erroneous"
Saving Through Sales
In addition 20 the supplies sold over
seas the department said coniprneut
valued at SOP 600 600 was returned to
-he United States
a 20 sales in this country, the de-
partment asserted that the sales d.
vision mad disposed OF property which
cost the government Sl.132 .06747692
and that The return to the United
states had been 1899 37S.417.42.
The statmcnt asserted that "to re-
duco the high cost Of living" the War
department in the last year and q half
nsd sold approximately $4,000 900
worth OF food supplies at 60 per cent
o. their cost value
With reference TO the charge that
sugar was sold to France for two cents
pound, the statement declared that
s,0Oo.o00 pounds Of sugar was sold to
taat country at - cents pound and
100000 pounds 70 the American Relief
Association at the same price.
at is therefore apparent" the state
ment continued. that at no time did
be War Department sell any sugar to
any foreign government at two cents
per pound
L. S. Guns at From,
4 10 the settlement of claims "iu-
volNing both formal and informal con-
tracts terminated by reason Of the
cessation Of hostilities," the statement
said the total amount of such claims
or The value Of the uncompleted por-
Ton ct the contracts amounted to So