Demobilization : $b our industrial and military demobilization after the armistice, 1918-1920Crowell, Benedict
History
Demobilization : $b our industrial and military demobilization after the armistice, 1918-1920
Crowell, Benedict
United States. Army. American Expeditionary Forces -- Demobilization; World War, 1914-1918 -- United States
From this outline it will be seen that the War Department, in striking
a balance with war industry, set up within itself what was essentially
a system of courts, with a regular procedure and process of appeal
and--for such the decisions of the War Department Claims Board came to
be--a body of laws and precedents. The court system, however, had the
advantage of flexibility, simplicity, and rapidity of action, being
hampered by none of the rules and customs that circumscribe the regular
courts. The war department courts, if we may call the claims boards
that, were courts of conciliation. The claimants partook of their
benefits voluntarily. They might, under certain conditions, at any
time appeal to the regular federal courts; but there they faced years
of litigation before they could reach final settlement. This gave the
war department system a great advantage, which the Department utilized
to obtain advantageous terms for itself; yet it must be said that the
entire liquidation was conducted in a spirit of desire to make the
contractors whole for all their expenditures.
We are now in a position to understand the unavoidable injury done
to the holders of the informal contracts during the first months
after the armistice. When the Comptroller of the Treasury ruled
that the informal contracts were invalid, he foreclosed the War
Department from making any advance settlement payments to these victims
of patriotism and haste. Many of them were as heavily obligated
financially as the holders of the valid contracts, and their solvency
was equally precarious. Yet not a dollar of government money could
they receive until the wheels of legislation had ground out authority
for the settlement of their claims. Some of their circumstances were
particularly distressing.
Early in October, 1918, one of the war department bureaus ordered a
certain manufacturer to produce 5,000 frames for army trucks on the
security that “formal contract will follow.” He was awaiting the
arrival of this document to justify him in making commitments for
materials when he received an urgent message from Washington beseeching
him to make early delivery of the frames. He yielded, and without
waiting for the formal contract spent over $500,000 for machinery and
materials. The armistice was signed before his formal contract was
executed, and then, with his production stopped, he was unable to
collect a penny of the money due him. Another man spent $400,000 in the
prosecution of a contract, only to find after the armistice that his
apparently valid contract had been improperly signed and therefore was
classed among the invalid contracts.
Public-domain text, read in full here on John Shaqi.
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