Even as the ordnance industry was being stopped, the Government was coming to an understanding with the ordnance contractors as to the settlement of their claims. To this end, in most of the manufacturing districts the board members traveled from city to city, addressing large meetings of the contractors and explaining to them the general liquidation policy adopted by the War Department. In its broad outlines, this policy was as follows: The Government would take off the contractor’s hands at cost all materials which he had specifically purchased for his contract, but which he had not used. The Government would reimburse him for all work done on his contract, for all materials used, for all money paid out in wages, and for all legitimate overhead expense, the Government in return taking over all materials in the various stages of their completion. Further, the Government would regard as proper costs whatever it cost the contractor to terminate and settle his subcontracts, and would pay these costs. Finally, in specific instances the Government would pay money in amortization of the cost of machinery and tools bought especially for war use, the sum to be proportioned to the amount of work completed. And whatever else the contractor was out of pocket legitimately, the Government would pay. When the various costs were brought together as a lump, to this sum the Government would add 10 per cent as profit. It would, moreover, allow 6 per cent interest on money which the contractor had invested in materials, reckoning from the average time of purchase to the date of the settlement; but it would not allow 10 per cent profit on this investment in addition.