Evening star. [volume], November 01, 1918, Page 4, Image 4

About Evening star. [volume] (Washington, D.C.) 1854-1972

Image provided by: Library of Congress, Washington, DC

                
Mammoth Cloak
and S?it House
316 Seventh St
NAVAL RESERVE WOMEN
Suits, $25 | Capes, $35
We Are the Official Contractors for the
Naval Reserve Women.
If you have not been measured by the Navy tailor
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| delivery or take your measurements for three days'
i delivery.
! HUGHES AIRPLANE
REPORT OUTUNES
CAUSESOF DELAY
Recommends Criminal Pro
ceedings Against Three
Army Officers Named.
FAULTY ORGANIZATION
BLAMED FOR MISTAKES
Error* Detailed and Huge Profit*
of Various Manufacturers
Mentioned.
The mistakes, failure* delays and
I wastages of the airplane production
' program under the administration of
'the old aircraft boards before the re
organization of last May are detailed
jat length in the report of the investi
gation conducted by Charles E.
Hughes and Attorney General Greg
ory, which was before the country to
day after having been made public at
the White House.
While the report acknowledges the
successes and achievements of the new
administration in aircraft, headed by
John D. Ryan, it deals unsparingly
with the shortcomings of the old or
ganization and recommends court
martial proceedings for one Army of
ficer concerned and criminal prose
cutions for three others.
Chief Blame for Failures.
The chief blame for the failures is
charged by the Hughes report to de
fective organization in the Army
Signal Corps and the lack of compe
tent direction of the work by the re
sponsible officers of the corps.
The report finds that there were de
DDRINGtheCivilWarmany
women were reduced to
wearing congress-gaitered
shoes with black serge tops.
That won't happen during this
war. Our helpful women are wear
ing shoes giving the longest service.
TMKMMllUutMM
The
PRINCESS
PAT
SHOES
These are woman's most sensible
occupation-shoes for her busiest
times. They are long-lived shoes.
Pot on one. Note how neat the
toe looks and how snog and warm
the high upper is. Take a few steps
and notice how light the heel makes
the whole shoe feel.
As time goes on, you are certain
to be more and more occupied at
home, in business, for the Red Cross
or in war-work of one kind or an
other. This occupation-shoe
can't save you steps, bat it
can make every step lighter.
lays is getting aintlaae "SSfiJE??
the allies and pnputut specifications
for their production; that plana fre
quently war* changed. to the embar
rassment of contractors; that some
manufacturers well qualified by or
ganisation and experience could not
get orders, while others apparently
with few qualifications, if any,
succeed in getting them, and that
there were confusion and waste In tne
plants.
Enormous Profits Made.
Profits In some Instances, Mr.
Hughes reports, were enormous, al
though Attorney . General Gr?K?ry
points oat that *0 per cent of these
profits revert to the government in
the form of war taxes, and expresses
the belief "that no such profits were
allowed as to Justify a charge of bad
faith."
The Dayton-Wright CoiT>?ration, the
report says, with a capital of J1;???'???
and government flnanctng to tne ex
?A8??hr.Jsaff'K
Ford Motor Company, On contracts lor
5,000 Liberty motors, the report esti
mates. will make a profit of more than
*5,000,000 on an investment ol not
more than *11.800,000. The Fisher
Body Corporation, with an investment
of *8*0,000 and government financing
of *2,000,000, the report ?? e?""
I mated to make a profit ot $*.600,000.
The Packard Motor Company, with
calculated Investment of *11.808,000
and a contract for 8,000 Liberty mo
tors, is estimated to be about to rea
lise profits ot *?.450.#?0 on seventeen
months' work. The Lincoln_ Motor
Company, with paid-in <cWi1t?] n(S,f i
*850.000 and Investment of *7,150,000,
of which *3,4*0,000 represents Items on
wnich the government pays 40 per
cent depreciation, is estimated to
have in prospect or in hand profits of i
*7,1*0,000.
How Bad Organisation Hurt.
Pot a whole year after the coun
try entered the war, the report says,
the equipment division of the Signal
Corps of the Army was badly or
ganized, with "a host of sections and j
departments will ill-defined functions,
creating disorder and confusion rather
than sustained, well directed and ex
pert effort."
Hundreds of flying cadet* the re
port says, were held at training
camps during the early months of the
war without facilities for training
because there was a failure in deliv
ery of training planes.
Where Chief Waste Was.
The ohief actual wastes from the
original appropriation of *640,000,000,
whidh subsequently was increased,
the report says, was in the abandon
ment of two types of airplanes?one
of them the much discussed Bristol?
and the failure to take advantage of
salvage from the abandonment. This
waste is computed as amounting to
| *24.000,000.
Three Officers Blamed.
While there is no charge of "graft,"
the report recommended that criminal
proceedings be brought against three
Army officers on charges of dealing
with corporations in which they were
financially interested. They are:
Lieut. Col. J. G. Vincent, former vice
president of the Paokard Motor Car
Company, and now in charge of the
airplane division of the air<*aft pro
duction bureau; Lieut. Col. George W.
Mixter, a stockholder In the Curtiss
Airplane and Motor Corporation and
production manager of the aircraft
bureau, anu Lieut. Samuel B. Vroo
man, Jr.. inspector of propeller lum
ber- and a stockholder In the S. D.
Vrooroan Company of Philadelphia.
Court-Martial Becommended.
Recommendation also Is made that
Col. Edward A Deeds, a member of
the original aircraft board, and the
subjectof much criticism that brought
on the inquiry, be brought before a
court-martial for sending confidential
War Department information to for
mer business associates at Dayton,
Ohio, and for sponsoring "a grossly
misleading statement" last February
about progress of production.
The report exonerates from any
wrongdoing the civilian personnel of
the aircraft production board.
Praise for Ryan, and Potter.
No criticism was offered of the
management of aircraft affairs since
the reorganization of last May, when
John D. Ryan was placed in charge
of production. In concluding his re
port Mr. Hughes said that "it should
be said that under the direction of
Mr. Ryan and Mr. Potter (William C.
Potter, assistant director of aircraft
production) there has been improve
ment in organisation and progress
ti.n been made in gratifying measure.'
Charges Brought Out.
Mr. Hughes declared the charges
substantiated, in part, were:
Delay In getting planes from the
allies and in preparing specifications
for their reproduction. v iv ,
Frequent changing of plans, both of
airplanes and liberty motors.
High profits to manufacturers, both
of planes and engines.
That in pushing for speed in pro
duction. confusion and waste occur
red in plants.
That some manufacturers well quali
fied for production were not given con
tracts, while others poorly prepared
were given orders, and
That many plants engaged in air
plane manufacture lacked knowledge
and experience.
Of the original appropriation of
*691.581,868. the report showed that
disbursements reported to lut June
*0, including advances for building
olants and other expenses, amounted
to *4*0,000,000, and *276.000,000 of the
appropriations remained unexpended.
Of the total expenditures *155,000,000
went for manufacture of airplanes and
engines at home and overseas.
Number of Planes Delivered.
As to actual performances, the re
port showed that to last June 30 6,171
airplanes had been delivered by man
ufacturers, ot which 5,618 were train
ing plahes and 5*3 combat and bomb
ing plants. Motors delivered to that
time totaled 12,633, of which 2,390
were liberty motors, the original pro
gram for which called for 17,000 by
that time.
Up to October 11, the report said,
? *74 planes had been completed, of
which 5,187 were for elementary
training, 2,137 for advanced training
and 2,*50 for observation and bomb
In*- also 24,672 engines had been fin
ished, of which 9,689 were liberty
motors. Of the liberty motor Mr.
Hughes said; "It now appears conclu
sively established that the liberty en
gine is a great success for observa
tion and bombing planes."
Pooling of Patent Bights.
Discussing charges that through the
nooUng of aircraft patent rights In
the Manufacturers' Aircraft Associa
tion leading contractors hindered
progress of invention and restrained
trade. Attorney General Gregory, in
his letter of transmittal, said: t
"Whatever may be said of the
charge that this arrangement tends to
discourage future inventions, one of
its results was to enable the govern
ment. through contractors, to secure
the use of all necessary patents at a
fixed cost and with little friction. It
was not entered into until the At
torney General had given an opinion
that it did not conflict with the anti
trust law. I And no basis for the-sug
gestion that in bringing it about the
members of the aircraft board were
actuated by any unlawful or dishonest
motive."
Mr Hughes explained that he would
Ml deal with the question of the legal
ity of "ll* agreement, and said it would
require a more exhaustive examination
i( the patent situation than he made
to ascertain whether the patent rights
contributed to by the Wright-Martin
Aircraft Corporation and the Curtiss
Aeroplane and Motor Corporation justi
fied the arrangement to pay *2,000,000
to these concerns.
High Salaries Criticised.
?paid officers ot seme airplane
plants and charged to operating ex
penses. which were paid by the gov
ernment, were criticised by Mr.
Hughes. He referred particularly to
officers et the Sexton Wright Airplane
Company, H. B. Talbott, er? who re
eeived (35,000; C. F. Kettering, who
S?S-U!i*S?,L
These men, business associates of
OeL Deeds, also received large sala
lies from other Dayton bM with
which they *?re connected. "B*?
more extruriliarr,* nH Mr. Hash**
"was the salary of 9*M00 a. year paid
by the Standard Aircraft OerporatiMU
at Elisabeth and Plainfleld. N. J? to
Its president. Harry B. Minole, a New
York lawyer." These salaries. It was
explained, are subject to reduction by
the government.
Discussing various causes of waste.
Mr. Hughes said: "The most serious
waste in connection with service
planes was in the work and materials
thrown away, on the Bristol flsbter,
which was in the course of production
at the plant ot the Curtiss Aeroplane
and Motor Corporation and was finally
condemned in July, HI*." Money loss
incurred in this machine was calcu
lated at about IfcMO.MO.
Cause of .Waste 1a Material.
Engineering chances and faulty
workmanship were the leading causes
of waste in material. Mr. Hughes
found too little attention was paid to
salvaging scrap material.
Labor conditions, he said, "generally
were unsatisfactory." He referred to
the lack of stability of employes*,
forces, saying, at the Packard plant,
foh instance, the labor turnover was
between 400 and 590 per cent a year,
"which would mean 40,00t to 40.0M
men coming and going In order to
maintain an organization of 10,604 to
11,000 men. Criticism also was given
the Wright-Martin company for seek
ing draft exemption for many ot its
employes at the New-Brunswick, N. J.,
plant, who had few qualifications for
the work in which they were classed
as expert* Conditions in this plant,
however, are said to have Improved
lately.
Padded Fay Bolls Blamed.
Since the government paid manufac
turing caste, Mr. Hughes says, the
tendency in many plants was to pad
pay rolls.
At the Curtiss plant near Buffalo.
Mr. Hughes said, "there is abundant
testimony, with picturesque detail,"
showing that 'large numbers of em
ployes were kept on the pay roils
when they were not needed; through
an utter lack of a decent system men
and women were paid when they did
not work; employes were able to leave
the factory without being detected
and remain absent for hours, while
recorded on duty; employes would
ring one another's time cards; men
who were without work enough dur
ing the day to keep them busy were
employed overtime at Increased ratee;
men were brought to the plant Sun
days when there was virtually noth
ing for them to do, and for many
months there was such demoralisa
tion at this plant that it became the
subject of contemptuous gossip
among the employes in the commun
ity."
Referring to the government's pur
chase in November, 1917, of the Gen
eral Vehicle Company's plant at Long
Island City, N. Y., to make engines,
Pttty Ormft
DBring the hiyettlftt'on Attorney
General Gregory reported a cum el
petty craft *ai discovered In an of
fice of the Signal Corps, fostered by
a etvUiaa employe, "tending to es
tablish , dishonest Inspection on a
rather small scale .in one ,of the least
Important plants." A graad jury is
investigating.
Criminal charges asade against the
three Army officers, if substantiated,
would involve imprisonment of net
more than two years and tee of not
more than $1,000.
The Jaw specifies that "no officer or
it of aay corporation, Joint stock
_taay or assartstlon. and no mem
ber or scent of any firm, or person
directly or indirectly Interested in the
pecuniary profits br contracts of such
corporation. Joint stock company, as
sooiation or Arm, shall be employed
or act as an officer or agent of the
United States for the transaction of
business with such corporation. Joint
stock company, association or linn."
Pro-German at Ford Plant.
Mr. Hughes in his report referred to
the retention by Henry Ford of Carl
Emde as chief of his drafting depart
ment. despite oharges of pro-Gorman
utterances against Emde. After hear
(Continued on Tenth Paget)
Honest Advertising.
For the protection of its
readers, The Star carefofly
censors all advertising sub
mitted for publication, and, so
iar as is possible, bars all false
and fraudulent statements.
Readers are requested to as
sist The Star in protecting the
public and all legitimate adver
tisers by bringing to the at
tention of the paper any state
tnent that they might find to he
fraudulent. v
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