United States. Navy -- History -- World War, 1914-1918; World War, 1914-1918 -- Naval operations, American
MANY MILLIONS SAVED BY REFUSING TO PAY EXORBITANT PRICES--"NAVY
ORDER" PREVENTED EXTORTION--OVER THREE BILLION DOLLARS EXPENDED
WITH NEVER A HINT OF GRAFT OR EXTRAVAGANCE--COMPETITION ADHERED TO
IN WAR--FEEDING AND CLOTHING 500,000 MEN A BIG TASK, ACCOMPLISHED
WITH SIGNAL SUCCESS--SAVING IN HUGE SHORE CONSTRUCTION.
The Navy spent over three billion dollars for war purpose without a
suggestion of extravagance or graft. To be exact, Congress appropriated
$3,692,354,324.71. Of the amount $334,360,000 were returned to the
Treasury, in February, 1919, and additional sums later by the sale of
excess supplies and vessels that were no longer needed.
The rule of the Department, "A dollar's worth of Navy for every dollar
spent," was adhered to in war as well as in peace. Early in 1917 steel
was contracted for at 2.90 for Navy ships when the price was soaring
in the market. Coal and oil and copper were purchased at reasonable
prices or commandeered. Manufacturers of torpedoes and smokeless powder
and other makers of munitions were held to reasonable profits. Where
munition or supply dealers wished more than a fair profit, a "Navy
Order" was placed.
The history of the "Navy Order" should be told, for it was the weapon
that saved the Navy from profiteering. Competition prevailed through
the war in all purchases except where the supply was inadequate for war
necessities. In some cases the exigency of war demanded commandeering
orders. Such orders were sometimes required because excessive prices
were quoted, but often because the only private concerns which could
manufacture the article needed were under contract for all their
output. If they furnished the government of their own will, they were
liable to the parties who had contracted for their product. In such
instances, a commandeering order was necessary both to obtain a war
necessity and to protect the manufacturers.
In the naval appropriation act a provision was early inserted, drawn by
Chairman Padgett, giving the power, when agreement could not be reached
as to the price for something essential, to commandeer it--whether
ships or land or munitions or supplies--and pay 75 per cent of the
appraisement, leaving to the owner the right to contest in the courts
the reasonableness of the compensation so fixed. That provision later
became applicable to all war agencies of Government. It was not often
invoked. The knowledge that the power was there and the declaration by
the Secretary of the Navy that he would invoke it when any excessive
price was demanded, and its use in some notable instances, made
profiteering on the Navy not easy, and it was seldom undertaken.
"Certain coal operators are demanding excessive prices for coal," said
an officer of the Supply Department when coal was necessary to bring
back soldiers and munitions from Europe and carry on naval operations.
Public-domain text, read in full here on John Shaqi.
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