Evening star., 1924-04-08
WEEKS EXPLAINS
CONTRACT CASES
Issues Statement to Clarity
Air Service Questions in
/: Daugherty Probe.

Secretary Weeks today issued the
status of the air service war contracts
now under investigation by the Senate
committee, in order, he said, to clear
up the misunderstanding that appears
TO exist generally" on that subject
"At the time of the change of ad-
m'nistration, in March of 1921" said
the Secretary of War, "the air service
claims board had virtully completed its
work of passing upon war claims. In
connection with the settlement of the
remaining cases which were taken up
after / had assumed the office of the
Secretary of War. attention was
directed to some of the earlier negoti-
:tted settlements which had been made
by the prior administration. 1t was
felt that it would be for the best in
tereStS Of the government to re-
examine number of them and, in fact,
Gen. Menoher, chief Of the air service,
recommended 4 re-eXamnation of a
number of these earlier settlements.
The recommendation was held for
discussion with his successor as /
had decided to select another officer
As chief of the air service. Gen. Pat
rick, shortly after taking charge of
the air service. made substantially the
same recommendation as Gen. Menoher
/ approved the recommendation and di-
rected him To proceed at once with
the examination.
Speed Vital to Firms.
In fairness to the previous admin
fstration. it should be stated that
certain of the negotiated settlements
on contracts for aircraft and engines
were made hurriedly, because of an
earnest desire on the part of the gov
eminent that these contractors re-
sumo their peace-time activities as
soon as possible.
Upon examination of all contracts
made by the air service during the
war. it was found that no further in
N"Stigation was necessary in the
;.'cat majority of cases. 1t was APP
parent. however. that a thorough
audit was essential in thirty-tWo OF
the major contracts, which involved
the largest amounts of money, in
order to ascertain with eXaCtneSS the
sums which should have been paid to
the contractors.
Asked Special Audit.
Very few employees in the air serv-
Ice were competent to make the kind
of an audit which these contracts
called for and the funds availa bic
were exceedingly small. | authorized
the use Of all available funds, and
called the attention of the Congres-
Sional appropriation committees to
the situation that had. developed. rs
a result the annual appropriation
bills authorized the sum of S2j,000 to
pay the cost of the audit. AS many
skilled auditors were put to work rs
could be secured with the money pro-
vided and the audit has been prose
cuted as rapidly as possible
The contracts themselves had to be
most carefully examined in .sonn-c-
ton with the audit, as the propriety
Of some of the amounts allowed in the
tentative settlements hinged upon
the Interpretation of ontract clauses.
The contractors were notified when
ever the work on their contracts had
progressed to the proper point. They
were then permitted to present evil
dencc and submit arguments and
explanations on the sums allowed in
the original settlements. This in
vulved much work on their part and
the War Department properly allowed
them the necessary time for its per
formancc.
After the contractors bad presented
their side of the case those in charge
of the audit drew Up a. summary of
their conclusions. These included
ittmized statements setting forth the
sums which in their opinion had been
allowed improperly to the contractors
in the original settlements and show
ing in some cases unallowed sums
to which the auditors believed the
contractors justly We're entitled.