ARMY SUPPLIES

Dominion, Volume 12, Issue 111, 4 February 1919, Page 4

ARMY SUPPLIES

SMALL SURPLUSES ON HAND. The Defence Department, through the Department of Munitions and Supplies, presided over by the Hon. A; M.'Myers, has been disposing of the stores and clothing left on its hands at the time the camps were broken up. The amount of such material was considered to bo remarkably small by comparison with the enormous amount being purchased through the Department. The consumable goods, such as food and forage, were sold at the end of last year. Such material as clothing was offered for sale, but only a small r quantity has been posed of-'in this'way. Most of it has boon taken hack by the manufacturers, who will doubtless be able to get rid of it for rather better prices than those allowed by the Defence Department. It 18 possible that towards the end of this month there will be a sale of the rei mainder at auction. The . Minister states that no loss has been made by the Government in respect of contracts for supplies, which contracts have had to_be broken upon the cessation of hostilities. At that time contracts were in being by which the Government was committed to payments of, half a million of money. But there had been inserted in all the contracts for this year 1 a clause providing for just such a 'contingency, and under this olause the contracts were cancelled and the raw materials taken over by the Government. The value of these materials so held by the Government was .£IB,OOO. No compensation was payable in respect of the contracts. Similarly with contracts for the supply of food. Commitments under- the forage and food contracts amounted to some .£43,000. but the amount payable in compensation for the termination of these contracts waa only J687. ■