New-York tribune., 1920-05-19
Charges Contract Failure

Charges Contract Failure
Charging the Air Nitrates Corpora
tion, builders of the Muscle Shoals
plant, with failure to perform it's con
tract the majority recommended to
Congress that no further sums be paid
it on account, and that civil suits be
instituted for recovery and tF&t the
whole question of pay be threshed out
in the court of claims. 1t also was
recommended that the government
pursue such remedies as might be de-
c.ded by the Attorney General
After asking Congress to sell ma
terials stored at the Toledo and Gin
clnnati plants and retain the Sheffield
Ala, plant the committee recon-
mended that it lease the deserted
villages built for officers at Sheffield at
cost Of Sl2,O00,0OO
The principal recommendation by the
majority related to the big Muscle
Shoals plant, costing S7O,OOo,O0o Being
too valuable to scrap, the majority
recommended that II be leased and con
Verted into fertilizer plant for the
sale OF products direct to farmers, with
the right of the government to take
it over in time OF threatened war.
The majority charged that the
nitrate program cost the government
Sl16,194,974, that no nitrates were pro
duced prior to the armisticp, and that
it ributed nothing toward winning
the war.
The minority replied that if war et-
penditures We're to be Judged by the
unexpected end of hostiities, three
fourths of the nations efforts we're
useless, 3,000.0 .0C0 men more than We're
necessary we're called to the colors
and Congress made itself "rjdicuous'
IN passing the last draft act
More Plants Were Planned
Had the war continued. said the ma
iority, MIR. Baruch planned additional
plants that would have cSst $20O00O,- :
600. The minority said the cost was
roblematical, but that thc Adminis-
tration would have provided the IA
tons necessities 'and soldiers on the
firing line would have had the absolute
assurance that they were not being
sent to shambles for lack OF ammu-
nition."
The nitrate program was character
ized by the majority as "onc of the
misdirected efforts" This, the minor
lty said was inconsistent with any
sound line of reasoning.'
II there was necessity for the manu-
facture of nitrates, the majority said
nation was in the midst Of war was an
apt illustration of the "neglect of the
Administration to put into effect laws
for protection and preparedness. This
meant, according to the minority,
criticism OF the President for not
"While we were at peace hastily en-
barking on war supply program
There was no national necessity, the
majority found, for such a vast build
ing program, adding that Chilean
nitrates should have been bought and
stored. The minority replied that the
majority in one breath called it mis-
directed and in the next declared there
was no national necessity at any time.
Answering the maioritys charge that
the excuse Of danger of German sub
marines cutting off the Chilean supply
was ''Tisionary,' the minority reported
that the submarine menace was an ele-
ment which it was the solemn duty Of
the government to regard.
Says No Profit in Job
The cost Plus system was condemned
by the majority. The minority said 1t
was the only practicable way Of get
ting speed and action.
Excessive waste of labor and mate
rial, amounting under ordinary circum-
stances to criminality,' was charged by
the majority. Admitting waste, the
minority declared il was not wilful.
President Frank s. Washburn, of the
sir Nitrates Corporation, said to day in
reference to the reports, that the cor
poratlon made no profits whatever from
the job. is S5 per cent of is fee was
taken by taxes and the remaining Is
per cent went ITO expenses which the
government could not pay, He also
attacked the methods of the majority
of the investigating committee