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 completion of so large a quantity of the war construction after
the armistice enabled the Construction Division to go through the
demobilization of its industry without accumulating large stores of
surplus materials. Although in form, at any rate, the Division dealt
directly only with contractors who took the various jobs, actually the
Division itself procured the lumber, cement, brick, structural steel,
roofing, hardware, and the like, for the builders. The demand of the
war construction upon the supplies of building materials was so great
that nothing less than a centralized stimulation and control of the
entire market could have procured the materials in the quantities
needed. The Construction Division’s Procurement Division located the
supplies and then arranged each building contractor’s deals for them,
even stipulating the producers, quantities, and the prices which
must be paid for materials. This last was important, because the
war builders worked under a sharply safeguarded cost-plus contract
form, and therefore the Government was keenly interested in what the
materials cost. In addition to procuring supplies for the contractors,
the Procurement Division also purchased equipment for the war
buildings--heating, ventilating, and power plants, fire extinguishers,
refrigeration equipment, boilers, engines, and machinery of many sorts.
Its purchases ran at the rate of $2,000,000 a day in the early autumn
of 1918.
After the armistice and after the temporary suspension of effort
requested in order to give the Construction Division time in which
to take stock of its position, the production of building materials
and supplies of which the Government would be able to make no use was
rapidly terminated. The Procurement Division was made up of experts in
all branches of building construction, and therefore this Division was
made over after the armistice into the Construction Division Claims
Board for liquidating its war business under the direction of the War
Department Claims Board. In six months practically all the terminated
contracts had been finally settled by this organization, at an average
cancellation cost of 5 per cent of the face value of the contracts.
The termination of supply contracts and of contracts with constructors
of buildings not needed by the War Department after the armistice,
left the Construction Division with large quantities of supplies on
its hands. But these were by no means surplus supplies. The completion
of a large quantity of war construction after the armistice saved the
Construction Division from having to solve the problem of disposing of
much surplus. Supplies accumulated for the terminated jobs were simply
diverted to those ordered completed and thus utilized.
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