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The Garden Island. (Lihue, Kauai, H.T.) 1902-current, December 26, 1922, Image 6

Image and text provided by University of Hawaii at Manoa; Honolulu, HI

Persistent link: http://chroniclingamerica.loc.gov/lccn/sn82015411/1922-12-26/ed-1/seq-6/

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Who Got the Money?
r.iTTCT pr Tjnf 1 qr iaiFi51TI BiHP ilTF 1C 'trim ;iFrrjT-Trr.r:Tr7,-.i;-i.-rT.- rxi.Tiymfc ipincrt.rTt-nirignr "iiE'ui'-i' JifBL.i."
(From American Legion Weekly)
(Continued from last week)
This Increase was sorely needed
and it Is not half enough. The sec
tion now has 150,000 contracts In
hand, which is not all it hopes to
have by any means. It took two
years to audit 15000 of these, selec
ting generally simpler and smaller
contracts. At this rate it would re
quire 20 years to firish the job. At
the pace the section is poin now,
though it has only 14 years of vcrk
ahead of it. Doubling the force in'iBf.t
cut this into seven years. Hut if ve
wait that long legislation will be
necessary to lift the statutes of
limitation or debtors will go free of
payment and crooks free of jail. The
principal Air Service contracts are
not In tl hands of the section, tho'
a concerted move is gathering to
place them then:. At present they
are being checked by auditors 'n the
Air Service. It is urged that the
audit section, which was not con
cerned wit'i tho making of any con
tracts, should take over the Air
Service transactions as we!l as all
records of the liquidation piriod dur
ing which the j,avrnmenfs losses
were greatest. With this additional
work coining on tho budget allowed
the section leaves much to bo desired.
In addition to recovering millions
for the Treasury tha contract audit
section's work throws a penetrating
light in the situation which sur
rounded Uncle Sam, the world's
greatest, richest ar.d easiest custi
mer, when he strode into the mar
kets of his citizen:! and spent fif
teen billion dollar. It was not t.n
idle shopping tour. !t was a buying
expedition forced by war, a war
which meant life or death, a war
which victory alone could stand be
tween the keepers of those marts
and ruin at tho hands of a German
indemnity collector. One would think
that common decency, and if not
that the instinct .f self preservation,
would have prompted those who
sold war materials to u.k i fair
price and nothing more. Such was
not the case and to what extent
the findings of tie contract audit
.section is evidence that requires no
interpretation. The government paid
extortionate prices and the contract
ors reaped exorbitant profits, ae ev
eryone knows ,and that was bd
enough. But now we learn trat on
top of that, either by accident or by
design, Uncle Sam was mulcted for
many millions more. Several thou
sand contracts, closed and settled,
are reopened as if by chance, and
1116,000,000 is found to be due the
government, Pick up almost any
contract almost anywhere, shake it
and the money rolls out tho pub
lic's money.
"The findings of the contract audit
section," said Congressman Roy O.
"Woodruff of Michigan in a speech
in the House, "form a positive and
tangible basis for action by the De
partment of Justice." This statement
has been borne out by tho subse
quent indictments in the lumber and
Old Hickory powder .plant sale cas
es on evidence produced by the con
tract audit section. Mr. Woodruff
went on to predict that there ulti
mately would be recovered by iue
army auditors "$750,000,000 which
was wrongfully nud fraudulently
taken from the government by those
war contractors whose operations
have, incident to the audit of their
contracts, indicated unmistakable
criminal dishonesty."
A few typical cases handled by
the contract audit section will dis
close the nature of some of the re
velations that are being made almost
dally. Karnes of firms are not giv
en because the collections have not
been made.
A manufacturer had two contracts
for the same product. In one contract
he was to use government mater
ial, in the other contract . his own
material. He used government ma
terial in both contracts, pocketing
the difference of $700,000. The case
Is now a subject for correspondence
between the audit section and the
A contractor purchasing supplies
and delivering them on his own con
tracts with the government was re
imbursed on the basis of certifi
cates made by the government in
spector at the point of purchase. The
contractor substituted forged certi
ficates for the original ones there
by increasing the amount paid him
by the government.
A contractor drew large quanti
ties of material from the govern
ment to be accounted for in finish
ed products. An audit revealed $1,
371.3C8 worth not accounted for. The
case is being prepared for trans
mittal to Department of Justice.
A contractor manufactured copper
shell bands from government ma
terial.. The contract provided for
all scrap should be the contractor's
property. The contractor adopted a
novel method of manufacture. He
rolled the metal into sheets and
punched out the circular bands like
doughnuts. Each sheet yielded more
scrap than it did metal for the
A contractor who had been fur
nished with material for use on
a contract had a surplus on hand
when the contract was completed.
Ho sold the government its own ma
terial for a good stiff price and
then purchased it hack for a figure
considerably less, thus getting the
material for nothing and a good lit
tie rest-egg besides.
The Story of the Cantonments
So much for a few contracts that
have come to the notice of the army
auflitors. Let us now look at a few
other contracts which have not as
yet been favored with the atten
tions of this clean-up squad. Let us
first turn to a group of contract?
with whose results every soldier and
nearly every citizen is familiar
the sixteen great cartonments in
which the national army was mobil
ized and trained. These cantonments
cost $200,032,020, which figure has
been subject to most searching in
vestigation by the House commit
tee on war expenditures headed by
Represenative William J. Graham of
Illinois. The evidence fills thousands
of closely printed pages, and con
dudes with the finding that waste
extravagance and graft in the con
struction of these cantonments have
robbed the taxpayers of the United
States of $7S,500,000, or an average
of close to $3,000,000 per cantrn
ment. In other words, what the com
mittee figures the sixteen camps
should have cost is in tho neighbor
hood of $128,100,000.
Before we touch on the details
of some of the cantonment, pbwder.
nitrate, ammunition and other con
tracts, it may be wortli while to
sketch in a word the means by
which the various industries were
able to run "corners" on their par
ticular commodities and activities
when Uncle Sam entered the mar
ket as the world's greatest customer,
W'hen the war came the cabinet
was designated as the Council of
National Defense, and under it op
erated a large advisory commission
which was charged with establish
ing contact with the various indus
tries. The leaders of all lines were
approached. These industries had
powerful and compact organizations
ard their job was to sell. The gov
ernment had no such organizath n,
and in the stress of war was able
to form only the merest makeshift;
and the government's job was to
buy. Hence the advantage was with
tho seller with his vastly superior
organization, and close groups of
lumbermen controlled the lumber
problems, construction men the con
struction problems, steel corpora
tions the steel problems; powder
plants powder, meat packers meat,
leather dc alers leather, and so on.
Competition gave away to the clos
est combination, directly contrary
to the legal economic policy of the
United States since the enactment
of the first of the anti-trust laws in
lSOO. An unorganized and unprepar
ed government stood at the mercy
of an organized and prepared series
of industrial groups; a war was on.
we had to take what wo could get;
there was no way out and there
you are.
While official criticism has been
visited upon those in tho govern
ment service who handled the can
tonment construction, which the Gra
ham committee says cost the gov
ernment $78,500,000 more than it
should have, whatever the waste,
whatever the extravagances and
fraud, whatever the unreasonable
concessions wrung from the United
States by an organized industry, in
this instance tho fact remains that
with some few exceptions tho camps
were built and built on time. If as
much could be said for some of the
other war efforts these paf;es would
tell a different story, perhaps.. The
draft law was enacted in May, 1317.
and the government's camp commit
tee went to work. It spent ?2u !.
000,000, and tho Graham investigat
ors says this $7S,500,0u0 too much.
Nevertheless when the first of Sep
tember rolled around there stood
the camps and the new army had
a place to sleep. It was the same
army, let It be said, that fought in
France without an American fighting
plane over its head, though a bil
lion dollars was spent to provide
such planes; the same army that
advanced to battle under barrages
allied shells fired from allied guns
though the Liberty bond buyers
gave up three-quarters of a billion
dollars to the shell makers and half
a billion to tho gun manufacturers.
(Continued next week)
Now on Display are More Extensit
Than Eil
Remembrances for Young
Toys, Dolls and Holiday Specialties
Undressed Do'Js, Jointed Dells, Character Dolls, Bisque Dolls, Drowsed
lions, .lu.i'niu' iitiou.;, Painting and Drawing Books, History Books, Travel
Hooks, Ficliou Hooks, Games, Dominoes and Blocks, Checkers, Metal Cou
nt mil ion and Wood Toys, Tinker Toys, Iron and Steel Toys, Kitchen Cab
inet and Toy Dishes, Tea Sets, Cooking Sets, Metal Toys, Celluloid Toys,
Wooden Toys, Animals and Stuffed Toys, Friction Toys, Mechanical Toys,
l ull Toys, Musical Toys, Savings Hanks, Marbles, Tops, Horns, Harmonicas,
Drums, Top Guns, Air Rifles, Drawing Slates, l'aiuts, Halls, Tree Decora
tions, Tree Ornaments, Trees, Celluloid Rattles and Toys, Rubber Toys,
Children's Chairs and Rockers, Automobiles, Velocipedes, Hand Cars, Kid
die Cars, Harrows, Carts, Wagons, Rocking Toys, Papeteries, Albums, l'eucil
Sets, Decorated Christmas Paper, Tags, Cards, Seals, Labels, Christmas and
New Year's Greeting Cards and Folders, Christmas Tree Caudles, Paper
Garlands, Tinsel, Hells, Artificial Snow, Toy Pistols, Shoo Flys, Soap Blow
ers, Teddy Hears, Santa Claus Masks, Telephones, Pistol Holsters and
Belts, Cboo-Choo Cars, Jump Ropes, Toy Brooms, Baby Swings, Go-Carts,
Bicycles, Garden Tools, Sand Fails and Shovels, Tool Chests, Iron and
Steel Trains, Roller Skates, Etc., Etc.
Specialties in Grocery Department
Burhaius Clam Boulliou, Libby's Boullion Cubes, Whole Clams, Minced
Clams, Clam Chowder, Cream Cheese, Edam Cheese, Chili Cheese, Swiss
Cheese, Limburger Cheese, Maclareu Cheese, Jack Cheese, Grated Cheese,
Kelly's Mango Chutney, Daw-Sen Chutney, American Biscuit Co.'s Crack
ers and Cakes, Arnott's Cakes and Cookies, Marshmallow Cream, Anchovies,
Anchovy Haste, Caviar, Fish Flakes, Luncheon Uaddies, Kippered Herring,
Carlo Herring, Heardsley's Boneless Herring, Rick's Mackarel, Red Alaska
Salmon, Findon Haddock, Kippered Snacks, Imported Sardines, Smoked
and in Oil, Sardines in Tomato Sauce, Sardine Haste, Rubidoux Tuna, Fan
cy Blue Flag Crabs, Red Jacket and Sea Crest Lobsters, Blue Point, Mary
laud and Parrot Oysters, Duubar and Boiled Shrimps, Canned Apricots,
Blackberries, Cherries, Fruit Salad, Grapes, Loganberries, Peaches, Pears,
Pineapples, Raspberries, Strawberries, Dried Apples, Apricots, Currants,
Dates, Figs, Peaches, Prunes, Raisins, Rosario Marmalade, 1XL Jams,
Kellys Papaia and Pineapple Marmalade, Libby's Peach, Apricot, Straw
berry and Blackberry Jam; Pauls Apricot, Peach, Loganberry, Strawberry
and Raspberry Jam; 'Thee" Blackberry, Peach and Plum Jam; Assorted
Jellies; Marasca Cherries; Underwood's Deviled Chicken and Ham; IXL
Liver Paste; Enchilades and Tamales; Pate de Fois Gras; R&R Boned
Chicken; Heinz Mince Meat and Plum Pudding; Libby's Mince Meat; R&R
Plum Pudding; Olives; Chow-Chow; Relishes; Condiments; National Bis
cuit Co. Crackers and Cakes; Pickles.
In the Tobacco Section
CIGARS: Americus, Alhambra, Burns, Caswell Club, Champagne, Chan
cellor, El (.'amino Real, El Dallo, El Palencia, El Tovar, Jean Valjean,
La Corregidora, La Insular, Optimo, Owl, Vamp, Van Camp, "J.D.", Van
Dyke, Yoga del Rey.
CIGARETTES : Camel, Caporal, Capslain, Chesterfield, Fatima, Herbert
Tareylon, Home Run, Lit Marquise, Lucky Strike, Melachrino, Milo Violets,
Murad, Old Mill, Omar, One Eleven, Pall Mall, Phillip Morris, Richmond
Straight Cut, Three Castle.
SMOKING TOBACCO: Blue Hoar, Cross Cut, Craven Mixture, Curve
Cut, Dukes Mixture, Durham, Edgeworth, Five Brothers, Good Smoke, Her
bert Taeyton, Imperial Cube Cut, E. C. C. Mixture, John Cotton,' Prince
Albert, Red Indian, Tuxedo, Union Leader, U. S. Marine, Velvet.
Pipes, Pouches, Cigar and Cigarette Holders, Cigarette Cases.
Imperial Candy Co. Gooqs
In Decorated and Fancy Boxes
Sweet Meat, Milk, Opera, Smart Set,
La Supreme, Brazil Nut, Glace Nut,
Black and White, Societie Girl, Fruit
and Nut, Scenic, Mountain, Imperial
Red, Imperial Girl, Caramel Nougat,
Swiss Milk, La Rose, Chewing, Milk
and Vanilla, Chocolate Cherries, Al
gonquin, True Fruit.
Almonds, Wain
berts, Hazel
Glassies, Sanded Lemon Drops, Asso
get Mixed, Spiced Jelly Hearts, Bun
ton Baked Beans, Spiced Jelly Drop
ed, Cinnamon Balls, Peanut Squares,
Almond Top Chocolates, Tingaling C
colates, WTalnut Nougatine, Dusty RI
colates, Honey Nougat Chocvates, LI
Drinkable Things,
Appleju, Budweiser
Beverage, Diamond
Apple Juice, Creme
tails, Cliquot Club
Ginger Ale, White
"Phez" Loganberry
Cocoa, Chocolate,
Beverage, Wielan
"A" Cider, Mart
de Menthe, Marti
Ginger Ale, Rooi
Rock Ginger Al
Juice, Pinectar,
Coffee, Tea.
New Lines of Mens, V
Shoes Jus
By every Arrival of he
Lihue Store
Kauai's I

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