by the contractor for itself and on its own account and for and on account of all persons, firms, associations, and corporations furnishing labor and mate rials for said rifles, and this contract is upon the express condition that no liens or rights in rem of any kind shall l'e or attach upon or against said rifles, machinery, or equipment, or the materials therefor, or any part thereof, or of either, for or on account of any work done upon or about said rifles, machinery, equipment, or material, or of any materials furnished therefor or in connec tion therewith, nor for or on account of any other cause or thing or of any claim or demand of any kind, except the claims of the Government; provided, however, inasmuch as the contractor is not advised as to patents which may be in force governing the manufacture of the rifles covered by this agreement, the Government agrees to hold the contractor harmless against all damages, costs, or other expenses arising from claims for infringement against the contractor due to the manufacture of rifles hereunder. Article 16. For the determination of the actual cost as defined above a "compensation board," composed of not more than six nor less than three officers of the Army, shall be appointed by the contracting officer. This board shall ascertain, estimate, and determine the actual cost in accordance with article 12 hereof, and the decision of said board or a majority thereof shall be binding on both parties to this contract, subject to the approval of the contracting officer. Wherever possible, it will lay down in advance the methods to be followed in estimating and determining the actual cost, and where this can not be done it will act within three months of the date of the receipt thereof on any claim submitted by the contractor. It will determine the methods to be followed by the contractor in preparing bills and by the inspectors in certifying to them, and will determine the items which must be referred for its decision. Article 17. Within 90 days from the termination of this contract the contracting officer shall cause to be removed from the plant of the contractor all materials, appliances, equipment, or other personal property of whatsoever nature belonging to the Government or for which it may be responsible, such removal to be effected without working any substantial or unnecessary damage to the building or premises of the contractor, and during such occupancy of its plant after the termination of this contract, the contractor shall receive a rental on the basis heretofore provided. All or any materials, supplies, or other property purchased or acquired for use in the manufacture of rifles, the cost of which shall have been or must be reimbursed by the Government and which shall remain on hand unused or unconsumed, shall become the property of the Government and be removed by it under this article. Article 18. The contracting officer may cancel this contract at any time in respect of further performance thereof by notice in writing to the contractor, but in case of cancellation the contractor shall receive full reimbursement on account of all expenditures theretofore made or liabilities incurred up to the date of such cancellation, to make up the "actual cost" as defined in article 12 of this contract, to such "actual cost," there shall be added 10 per cent for profit. Article 19. If any doubts or disputes arise as to the meaning of anything in the contract, drawings, or specifications, or if any discrepancy appear between said drawings or specifications and this contract, the matter shall be referred at once to the Chief of Ordnance, United States Army, for determination. If. however, the contractor shall feel aggrieved at any decision of the Chief of Ordnance, he shall have the right to submit the same to the Secretary of War, whose decision shall be final. In witness whereof the respective parties hereto have hereunto set their hands and seals the day and year first-above written. Signed and sealed in the presence of WINCHESTER REPEATING ARMS Co., First Vice President and General Manager. Attest: Attest: ARTHUR W. EARLE, Secretary. UNITED STATES OF AMERICA, By WILLIAM CROZIER, Chief of Ordnance, United States Army, Contracting Officer. NATHAN HAZEN. AGREEMENT FOR THE EXECUTION OF THE RIFLE CONTRACT. Agreement made and concluded this 12th day of July, A. D. 1917, by and between the Winchester Repeating Arms Co., of New Haven, Conn., a corporation organized under the laws of the State of Connecticut, by J. E. Otterson, vice president and general manager, party of the first part (hereinafter called the contractor), and the United States of America, represented by William Crozier, brigadier general, Chief of Ordnance, United States Army (hereafter referred to as the contracting officer), acting by authority of the Secretary of War, party of the second part. Whereas the undersigned parties have this day executed a certain contract entitled "A contract for the manufacture of rifles," contemporaneously herewith and upon the express conditions of this agreement: Now, therefore, in consideration of the execution of said contract, said parties do hereby agree and covenant to and with one another as follows: (A) The specifications, drawings, and sample rifle referred to in said contract having not as yet been finally approved by the Chief of Ordnance, it is stipulated that said specifications, drawings, and sample rifle shall not be attached to said contract until approved by the Chief of Ordnance, and when approved shall form part of said contract as though attached thereto at the time of the execution thereof, subject, however, to modifications and revisions as provided for in said contract. (B) It is further stipulated that, upon such approval by the Chief of Ordnance of the specifications, drawings, and sample rifle, the contractor will use his best endeavors to the end that the deliveries of rifles provided for in article 9 of said contract shall be made in such numbers and at such dates as may be required by the Chief of Ordnance. (C) It is further stipulated that the specifications and drawings submitted on or about June 1, 1917, which are attached to and form a part of this agreement and which have heretofore been the basis upon which the contractor has proceeded in the performance of the work covered by said contract, shall, until the specifications, drawings, and sample rifle referred to in paragraph “A” of this agreement be approved by the Chief of Ordnance, govern the manufacture, inspection, and delivery of rifles, and form the basis upon which payments to the contractor shall be made by the United States. (D) It is further stipulated that the cost of all materials and supplies (but not of machinery) furnished by the United States Government shall be added to the contractor's approved bills and considered as a part of "actual cost" for the purpose of determining the basis on which to calculate the 10 per cent of profit and for this purpose only, and is not to be otherwise considered as a part of "actual cost" as the term is used in articles 12 and 14, or elsewhere, in said contract. (E) It is further stipulated that this "reasonable rate of interest" provided for under subdivision "C" of article 12 of said contract shall not exceed 6 per cent per annum. (F) It is further stipulated that the tax clause in paragraph "B" of aricle 12 of said contract is understood to except and not to apply either to any franchise tax or to any Federal tax on income, capital stock, profits, munitions, or the manufacture thereof. In witness whereof the respective parties hereto have hereunto set their hands and seals the day and year first above written. Signed and sealed in the presence of— WINCHESTER REPEATING ARMS CO., By J. E. O'HERSON, Vice President and General Manager. Attest: Attest: UNITED STATES OF AMERICA, ARTHUR W. EARLE. Brigadier General, Chief of Ordnance, United States Army, Contracting Officer. NATHAN HAZEN. THURSDAY, AUGUST 16, 1917. CONVERTING NATIONAL GUARD CAMPS INTO CANTONMENTS. (See pp. 335, 406-420, 501, 568.) STATEMENT OF HON. NEWTON D. BAKER, SECRETARY OF WAR, ACCOMPANIED BY BRIG. GEN. TASKER H. BLISS, ASSISTANT CHIEF OF STAFF. The CHAIRMAN. Mr. Secretary, it developed in the investigation of the estimates that approximately $74,000,000 was requested to convert the National Guard camps into cantonments, and the committee understood from your statement that the guard would occupy them for only three or four months and probably after that they would not be required. It was desired to obtain such information as was available as to the necessity or desirability of this expenditure. Secretary BAKER. The original intention, Mr. Chairman, at the time these estimates were made was to convert all of the National Guard encampments into cantonments, on the theory that a much greater length of time would be required by those troops in their American camps. Later information and fresh studies of it and fresh information from the other side changed our mind about that to this extent: We now feel that a very much briefer residence in these camps by the National Guard can be foreseen, and for that reason we think it is not wise to convert the entire sixteen national guard camps into cantonment form of construction. We can not say with certainty the maximum length of time that any of the National Guard camps will be used, and it is not impossible that weather conditions may make it highly desirable to change some of them into cantonment form of construction, although that does not now seem likely; but it is determined to frame and floor the tents to some extent and make some other improvements that will make them a little more permanent and comfortable than if they were simply tents cast on the march. So that the original intention is not now adhered to. I sent you a letter, Mr. Chairman, on that subject which you probably got. The CHAIRMAN. It has not yet arrived. Secretary BAKER. Perhaps I can just read that into the record. (The letter referred to follows:) Hon. J. J. FITZGERALD, AUGUST 11, 1917. Chairman Committee on Appropriations, House of Representatives. MY DEAR SIR: Referring to my recent hearing before your committee on the urgent deficiency bill, now under consideration, in which I stated in effect that it was not the policy of the War Department to convert the 16 National Guard divisional camps into cantonments, I desire to make further statement for the information of your committee as follows: It is not expected that these camps will be occupied by the National Guard for any extensive period, and therefore the expense of converting them into cantonments would be unwarranted unless they were to be occupied by other troops. It is expected that some of the camps may be occupied part of the winter and others until spring. It will therefore be necessary to prepare some of the camps for winter occupancy. It may also be necessary to construct other cantonments than those occupied by the first draft of the National Army, in case a second or third draft for the National Army should be necessary before the first draft has completed its training. In case such additional draft should be required the cantonments for its shelter would be required in the territorial districts from which the draft is made, and therefore the present camp sites of the National Guard would not be suitably located. While it is not desired to convert the National Guard camps into cantonments, funds for the construction of cantonment shelter will undoubtedly be needed, and also for fitting out a number of the National Guard camps for winter occupancy. The cost of preparing a National Guard divisional camp for winter occupany will be approximately $308,613 per camp. The number of cantonments which will probably be required in the next five or six months can not now be stated. I therefore have to request that the sum submitted in the deficiency estimate under the item "Construction of cantonments at National Guard camps," as it appears in the urgent deficiency bill now before Congress, be allowed to remain as necessary for the purposes cited above. Very respectfully, NEWTON D. BAKER, The CHAIRMAN. Mr. Secretary, the estimate does not come in that form. It is divided among a number of separate items aggregating all told, my recollection is, about $74,000,000, and the impression I had from some statements made was that these National Guard camps had been located so far south as to enable these men to be trained regardless of the season of the year without any change. Secretary BAKER. That is true. The CHAIRMAN. Then what particular change is necessary for winter occupancy? Secretary BAKER. The training was with reference to weather conditions out of doors marching long distances and pitching temporary camps on large maneuvers in the field and had not anything to do with the form of residence which could be used for their more permanent occupation. The CHAIRMAN. I do not understand it yet. Secretary BAKER. We put 40,000 troops in a camp, and that is their home. They may be there three months; they may be there six months; they may be there nine months or a year. Now, where men are living in a place like that, it requires a more permanent form of residence construction than if that division were ordered to take a march of a week's duration and maneuver over a large area when they would simply pitch their tents from night to night. If they are going to be there throughout the winter, they ought to have a home to which they can return which will be more comfortable, easier heated, etc. The CHAIRMAN. Did not the estimate for these camps include provision for wooden floors in these tents in the permanent camps? Secretary BAKER. I do not know that it did; but if it did, it was an underestimate. The CHAIRMAN. That is not the information before us. The information before us is that the additional expense is due to the fact that in a cantonment they put in a very much more extensive system of sewerage and water and lighting, and so forth, which is not true in the camps. Secretary BAKER. I could not answer that. If the Quartermaster General has told you that the original estimate included the item. of flooring for these canvas tents, then, of course, his information is accurate about it; and if the money has been spent in putting in sewerage systems and water systems in the cantonments, then the use of it in that way has created the deficiency. The CHAIRMAN. No; it has not been done yet, because I inquired about that from them. The work of converting these camps into cantonments has not yet begun. Secretary BAKER. That is true; and is not to be done. The CHAIRMAN. So that extensive systems of municipal work have not eaten up the appropriation. Secretary BAKER. We are talking about different things, Mr. Fitzgerald. The CHAIRMAN. No. Secretary BAKER. I was answering about something which evidently was not in your mind. You were asking me whether this money had not been used The CHAIRMAN (interposing). No; whether the original estimate for the National Guard camps did not include the cost of flooring for the tents. Secretary BAKER. And I say it may have; I do not recall; but if it did, and if that money has now been expended for enlarged needs in sewer systems and water systems in the cantonments-not in the camps but in the cantonments-then that would account for it. The CHAIRMAN. No; that situation does not exist. We have those figures separately. In the National Guard camps and in the National Army cantonments and the cantonments for the Regular Army there are accommodations for about one million and a quarter men, and in view of the conditions in mind as to the training of these men is there necessity for accommodations for any greater number of men during this year? Secretary BAKER. We will not have need in the United States- Secretary BAKER (continuing). For housing more than a million and a quarter men, in addition to those men in the Regular Army whose housing is provided for in Regular Army posts and quarters. The CHAIRMAN. Well, I will have to change the question. In the National Guard camps and in the cantonments for the National Army there are accommodations for between 1,000,000 and 1,100,000 men. Now, will there be need for accommodations for more men than that during the coming year? Secretary BAKER. I think not; unless there should be some need arise for smaller cantonment construction for special corps of special kinds of troops which it may be found necessary to organize. This appropriation, however, would be available for the creation of suitable housing in France, would it not; or it ought to be made so. The CHAIRMAN. That comes under a different heading. Another matter that has come up in connection with the estimates is in regard to equipment. It has developed that the complete equipment to be furnished by the Quartermaster General for the men to be called will not be available by the 1st or 15th of September, and the committee would like to have some information in that regard. I do not know whether you are familiar with the details or whether the munitions beard, which is supervising the contracts, should be asked for that information. One question which arose was whether |