Show RED TAPE TIES I CANCELING OF I BIG CONTRACTS Vl War Tar ar Departments Department's Program Halted by Decision of Comptroller Washington ton Nov NOY 23 The The governments government's govern O ments ment's maturing program for cancelIng canceling cancel canci ing big bis war Wl orders with the tho minimum o 0 of disturbance to bu business lne's conditions condition was as thrown Into conru confusion lon toda today by i n decision of or of or the treasury that thit thousands t C orders order placed by telegram telephone or mall mail mallare are arc not legally leg binding anti that consequently consequently con con- tho they ma may not be be recognized con I through the tho negotiation of or terminating contracts without 1 special 1 legislation b by Con Congress Congre gress Officials estimated that I hundreds hundred of or dollars In tn contracts contract are Involved I At the tho same came time Secretary Baker Baiter announced that the war ar department will direct Its own canceling of or conI contracts contracts con con- tracts tract Iii In n a spirit of fairness and hopefulness hopefulness hope hope- I to all concerned Compromise Attorney General Gregory will be bo boto to pass on this apparent conflict between the tho hw an as strictly Interpreted by Comptroller Warwick whoso hoo authority au au- grows out of or his supervision ton of oC payments from rota the tho treasury ut and the dc desire of ot the war at department to terminate ter ter- minate minato contracts contracts both bolh both those backed up b by formally signed docu documents and antl tho those undertaken on Informal agreements agree agree- ments monte monte-b monte monte-by by making some Rome sort ort of oC a n. lump sum payment to the contractor I If legislation l IB is found to be bo oary ertry It i Is said that an attempt will be mn made e to rush it l through h Congress Immediate Immediately Im Ins- mediate mediately to avoid holding up the tho governments government's gov go great In Industrial tu trl l demobilization tion lion and readjustment plans Comptroller Warwick ban haa explained that a n. contract t to be legal must bo ho reduced to writing with tho the names of the parties signed at tho the en end and thata thata that thata a sl signing b by proxy is considered b by this office as not permissible Contracts Contract Authorized Thousands of or contracts have ha b been en signed In this manner b by proxies of oC the army officers duly dub authorized by the secretary of oC wEIr The name of oC the tho of offIce officer of- of fleer fIce- In the these o cases were cre typo typewritten written at the en end of or the contract and a n. minor official actually signed on behalf of or the authorized contracting officer The only documents man many manuC manufacturers have to support their contracts consist of letters Instructing them to proceed with certain orders for war materials a at t certain prices or on the basis of a I. I percentage of or profit bearing the signature signature sig siJ- nature of oC a a. subordinate officer beneath the typed name of or tho the real contracting It was v explained that In th thrush the rush of or war preparations this system t m was necessary In tho the Interest o of speed The comptroller found round other faults with the proposed contract inasmuch as It failed tailed to reserve resene to the government govern govern- ment meat ri rights to recover reco over ocr payments or to credit t the e value alue o of materials remaining re remaining re- re property of or the contractor General Policy Outlined I Secretary Baker Issued a n. statement of oC the war departments department's general policy in canceling war supply contracts He lIe made mado it clear that tho the department t proposes proposes proposes pro pro- poses to do Its own canceling Instead of oC leaving the task to the tho war Industries industries Indus indus- tries board hen It becomes necessary ary In the public Interest to discontinue the production production production pro pro- of at supplies or materials which Ire are no longer needed by the army Secretary Baker Daker sal said negotiations for prompt settlement of contracts will be bo undertaken b by tho the war department In Ina Ina a a. spirit of or fairness and hopefulness to all concerned It Is expected that th contractors on their part will undertake e to furnish definite statements which will facilitate facilitate radii radii- tate prompt pa payment ment of or the thc obligations of or tho the government o War nr Department Paramount An erroneous Impression prevails pre that the res responsibility of or reduction or cancellation of or contracts rests in the tho war industries board This Is not tho the case The tho war department I Is the principal principal principal prin prin- cipal in tho the matter of or Its adjustment adjustments though It may whoa when It seems advisable advisable advis ls able ble advise with the tho war Industries board or other governmental agencies on matters of ot general Jeneral policy To prevent pre too violent dl dislocation of oC Industry accumulation b by tho ho war department of ot either Ither raw mat material or finished product will be distributed v when hen and where hue liquidation of such supplies will least Interfere with the tue return of or Indu Industry tr to normal condi condi- lion |