HUGE ARMY CONTRACTS

Dominion, Volume 10, Issue 3192, 17 September 1917, Page 6

HUGE ARMY CONTRACTS

£700,000,000 FOR SUPPLIES DURING THE WAR

REMARKABLE FIGURES

Remarkable figures, showing the scope and magnitude of transactions relating to supplies for the Army, are quoted in an interesting memorandum recently submitted to the House of Commons Public Accounts Committee by Mr. TJ F Win tour, Director of Army Contracts. Tho department is responsible for the provision of tho stores and supplies required for the Army, with the broad exceptions ot munitions, mechanical transport aeronautical supplies, and certain railwaj and engineering stores. The value of purchases during the war has been ovei A' 700,000,000, which includes 000 on behalf of the Allies. Tho present an-' nual value of purchases is about .£350. 000,000, including about ,£100,000,000 for the Allies. Among the purchases during tho war are included: Cloth 105,000,000 yards FlanjieU 115,000,000 yards Knives, forks and spoons 35,000,000 Bacon ■, 400,000,0001b. Cheese 167,000,0001b. •fim ...» 260,000,000 tins Preserved meat 500,000,000 rations Boots _ 35,000,000 pairs Smoke helmets 25,000,000 Horse-shoes 40,000,000 Reducing the Cost. Considerable redactions in cost are effected by the methods in operation. During the twelve months ended April 30 last, for instance, the cost of contracts for miscellaneous stores in one section to the value of ,£8,300,000 was investigated, and reductions were made amounting to ,£400,000, or 4.7 per cent. Particulars are given of tho purchase of the homo and Australian wool clips of 1916, the expenditure amounting to ,£6,500,000 in the .one case, and in the other. There is no doubt (says the memorandum) that this control ■-of British and colojnial wool has resulted in great economies to the State. Not only has the effect of war conditions on the market prices of raw material been largely eliminated, but the fixed prices of raw materials have enabled the department to control the costs of production at every stage. An estimate of the eionomies effected as compared with the prices' which the department would have to pay for the manufactured article, had the industry not been dealt with n'eng these lines, is put at over i13.000.C00. Tha Army requirements of leather are enormous. Tho control exercised by the Department has undoubtedly been the only means by which supplies can be assured. Tho price which the Department atiows for British hides is sd. per lb. below the corresponding world prices. Since 2,500,000 hides (averaging 601b.) are purchased per annum, the saVing here alone is over .£3,000,000. As regards jute, flax, and hemp, of which enormous quantities are required, it is estimated that the savings effected have amounted to .£1,000,000, and .£1,750,000 respectively. Food contracts of which details are given include thoso relating to tea, preserved meat._ and jam. Contracts are now made direct with the growers in India and Ceylon, through their representatives in London, for the purchase of tea f.o.b. Calcutta and Colombo, the Government providing the freight. The purchases in 1917, including Admiralty requirements, will probably amount to 60.Oflrt,0OOlb. The price to "be paid compared with tho London market prices (ex <luW Is estimated to show a saving of about 9d. per pound, hut it must bo remembered"that tho market price includes the cosfi of insni-ance, whereas the Government carries its own risk. A change has recently been introduced in the niacin/* of clothing orders to secure a "continuity of work." The firms nn tlie- War Office list have teen, carefully revised in the light of their performance?;', and thoso now on the list compete for continuous contracts for a steady weekly nutout determined bv their 1 respective productive capacities, the contracts being terminable by four weeksnotice on either side. For the Allies. Among the commodities purchased bv the Department in 1916 for the Allied Armies were the following:— Boots '9.000.000 pairs Sandbags .....; 109.000,000 lute cloth ..' 39.000.00fl metres Socks 4.2P0.000 pairs Blankets 2,165,000 In addition, leather, cloth of all ?:inds, foodstuffs, underclothing, portahV. houses. tools, hospital equipment, and other thing' have been provided in various quantities.