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
The Dent Law gave all such claims a legal footing, but that act
was not in force until March 2, 1919. Meanwhile, however, the War
Department’s liquidation machinery had taken up the settlement of the
informal contracts along with the others. The district boards had
determined for many of them what part of the work had been completed,
what amounts the Government should pay for materials delivered, what
reimbursements the producers should receive for expenditures made in
preparation for production, and in many instances had reached complete
agreements as to final lump-sum settlements. When the Dent Law went
on the statute books, these agreements needed only final approval to
become operative; and therefore the settlement of the informal claims
proceeded with great rapidity after the passage of the enabling act.
The Dent Law conferred upon the Secretary of War power to adjust the
informal contracts on equitable terms, with the proviso (already
adopted as policy in the settlement of the valid contracts) that
no prospective profits should be paid. This power the Secretary
delegated to the War Department Claims Board, with two exceptions.
Invalid contracts made with Canadian producers were to be adjusted
by the Imperial Munitions Board, a branch of the British Ministry
of Munitions, which had acted as the agent of the War Department in
procuring army supplies in Canada. All contracts with other foreign
producers--they were principally French and British producers--were to
be settled by various foreign agencies and representatives of the War
Department.
The informal contracts with American producers were of two sorts--those
of which there was written evidence and those of which there was
no written evidence. The former were known as Class A contracts
and the latter as Class B. The Class A contracts were contracts
apparently formal but improperly executed, or procurement orders, or
correspondence setting forth the contract terms. The Class B contracts
were agreements wholly or in part oral. The Class A contracts presented
no difficulty to the War Department Claims Board, and they were put
through to settlement by the regular procedure. It required the taking
of testimony to establish the terms of Class B contracts, and the War
Department Claims Board, with its subsidiary boards, had its hands too
full with the regular routine of liquidation to add to its business
this new, voluminous work; and therefore it in turn delegated the duty
of establishing the terms of the Class B contracts to the Board of
Contract Adjustment, the creation of which was noted above.
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