The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-17
BAKER TO OPEN
new INQUIRY ON
SUPPLY FRAUDS
Revelations by The New
York Herald Stir Secre-
tary to Action.
CALLS FOR TESTIMONY
Says Charges Tend to Shake
Public Confidence i'll Integ-
rity of Government.
MAKES GENERAL DEFENCE
Points to Enormous Size of
Task and Danger of Dump
ing Stores on Market.
MAKES GENERAL DEFENCE
Special Despatch to THE Nrw YORK Hna,uD.

New York Herald Bureau.
Washington, ID. C., Nov. I6.
Secretary of War Baker, at last
aroused to action by the exposures
made by THE New YORK HERALD in
regard to the disposal of surplus war
stocks by the War Department, is
sued a long statement tonight, max
irg a very general defence of his de-
partment and openly deploring the
fact that the exposures have been
made.
According 10 Mr.. Baker, publication
Of these facts and accusations may
tend to shake the confidence of the
country as to the integrity Of its
Government" He suggests that any
one having any suspicion Of wrong
doing should tell the War Department
about il ana let the department in
vestigate the matter, then publish
the facts when all the facts are
known"
Mr.. Baker promises In his statement
that all the accusations thus far made
will be thoroughly investigated" His
statement in full follows
"A newspaper in New York has for
some days being publishing series OF
articles making accusations of wrong
doing against the surplus property di-
vision Of the War Department. 1t is OF
course impossible for the War Depart
ment to engage in newspaper contro-
versies with regard to every suspicion
or accusation, responsible or irrespon-
sible. which may be circulated about the
vast transactions involved in the cleanup
of the war. Every such accusation, how
ever. can be and will be thoroughly in
veatawate6a and the Department invites
those who have any knowledge of irreeu-
larity or wrongdoing to place their in-
formation at its disposal so that COM
plete and searching inquiries can be
made.
stores Planned for 100000.
"The particular series of articles now
appearing made charges Of two kinds:
First. that the War Department bougat
too many supplies, and second. that
irregularities. favoritism and profiteer-
posing Of surpluses.
with regard to the quantities pur-
chased by the War Department, It must
be remembered that as late as October
1918. the War Department and the high
command in France expected the war to
last through the campaign Of 1919 we
were therefore. engaged In increasing
the army so as to have an overpowerinS
force on the western front In the spring
oe 1919.
"On the 11th of November. 1918, we
had 3 500. 900 in our army at home and
overseas. In France we had more Amer
lean soldiers than there were British
soldiers; in a few months we should
have had more American soldiers than
there we're French soldiers in France,
and had the campaign OF 1919 been nee
eesary the American Army would have
been greater in numbers than the COM
bined French and British armies in
France. Our purchases Of supplies there
fore looked to an army Of 5.O0O,O00
men. Happily the armistice intervened,
saving tens Of thousands of lives and
billions Of dollars which would have
otherwise been expended.
Feared to dump" stores.
."rbe early arrnistice and the rapid
demobilization Of our army left the War
Dspartfnent with vast accumulations OF
materials. Had this material been
dumped rapidly on to the market Indus
try In tho United States could not have
made the rapid change from war time to
peace time production and there would
have been unemployment on large
scale our demoblized war workers and
returning soldiers would have been job
less and the economic condition OF the
country prostrated. The policies which
we're pursued encouraged the resumption
Of industry, and America Us the only
actively engaged in war which
has up TO this time attained fun en-
ploymcnt conditions
"Tho expenditures smade By the War
Department and the salvage Of surplus
war materials represent striking hgurcs
The total appropriations from April 8,
1917. 20 June 80. 1920, for War Depart
rnent expenditures were s25552,369.55S.
or this slG.159,245,576 was expended
balances OF $I6l5t4lbb49
we're turned back 10 the Treasury De-
ductlng the balance on hand and octual
moneys turned in prior 10 June 30. 1920
from the sales Of surplus property and
other recoveries. the net cash outlay TO
June 80. 1920. Is t15,774.t63.S6J
Credit sales, cash from sales not yet
turned into the Treasury ana sales 5til
TO be made will undoubtedly reduce this
last net figure 10 about ti350O 100000.
In other words, Congress provided with
an unstinting hand for the supply OF our
soldiers and the War Department took
every step in It's power to prevent
shortage In any necessary war material
and built It's plan 20 meet the great army
I'm process OF formation
There was no shortage our soldiers
we're well fed. well clothed, well equipped
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