List of projects built by the Cantonment and Construction Divisions of the Army, with expenditures to June 30, 1919-Continned.

st of projects built by the Cantonment and Construction Divisions of the Army, with expenditures to June 30, 1919—Continued.

rojects on which the Construction Division did not handle the funds, doing supervision only.

Included under Camp Meade.

This amount also includes the expenditures made by the Division of Military Aeronautics on 13 procts on which the Construction Division later did construction work.

SECTION 42.

SELECTION OF PROJECT SITES.

The selection of sites for the cantonments and camps was made by boards of officers appointed by the department commanders. Sites for other projects were selected by the respective bureau, corps, or military agency of the Army requiring them, as follows:

The Quartermaster Corps selected the sites for its camps, depots, warehouses, expeditionary depots, interior storage depots, and other

facilities. These were usually located on main railroad transportation lines or at terminals where supplies could be collected and stored ready for shipment to camps or to the overseas expeditionary forces. Later the Department of Purchase, Storage and Traffic selected the sites for Army supply bases and port terminals built along the Atlantic coast.

The Ordnance Department selected the sites for proving grounds, arsenals, bag-loading plants, bomb plants, depots, housing, incendiary products, and some manufacturing plants making munitions, including nitrate plants, sulphuric and picric acid plants, toluol recovery plants, shell making and loading plants, and many others.

The Chemical Warfare Service selected sites for its gas plants and gas-defense work.

The Artillery Corps selected camp sites for the field and heavy artillery.

The Engineer Corps selected sites for its camps and schools.

The Signal Corps selected sites for its warehouses, depots, and

camps.

The Tank Corps selected sites for its camps and manufacturing plants.

The Motor Transport Corps selected sites for its repair shops, storage buildings for spare parts, crating shops, training camps, and garages.

The Medical Corps selected sites for general clearing, debarkation, embarkation, and miscellaneous hospitals, Medical Corps camps, and Veterinary Corps camps.

The General Staff selected sites for permanent posts, interior Army recruiting depots, remount depots, and war prison barracks.

The majority of these projects were built on leased ground. The sites of some of the larger projects, such as artillery camps, proving grounds, Army bases, etc., were purchased.

The Ordnance Department selected also the sites for a large number of projects, of which the majority were extensions to existing manufacturing plants, and were, therefore, located either on Governmentowned or leased sites adjacent to such plants or on the property of the manufacturer, who was to undertake the operation of the plant on completion. The Government expended several hundred million dollars for manufacturing plants, and installed equipment on ground much of which it does not own or control.

In many such cases the Government now has three alternatives: To buy the site at the owner's price.

To sell the buildings to the owner at his price.

To remove the buildings from the premises. This procedure in most cases is impracticable, as the cost of demolition and restoring

the site would be as much or more than the salvage, and, in addition, the owner of the land usually finds ground for a claim.

In some cases the manufacturers with whom contracts were placed for construction and production through their control of plants, processes, or patents, or because of other reasons, were the only available sources from which the Government could secure certain essential war materials. However, it is difficult to understand why the officials drawing the contracts under which these plants or extensions were built did not protect the Government's interests by agreement, option, or purchase of sites. The value of the site was usually inconsiderable compared to the expenditure by the Government for the improvements it made or paid for thereon. Had this been done the Government would now be able to sell or lease these properties on terms much more favorable than it can now obtain, being practically without rights and at the mercy of the landowners. The board believes that this situation warrants careful inquiry and the taking of such steps as will, in the future, enable the Government to act promptly in an emergency without having to lose the use or title to its property. This may call for legislation.

SECTION 43.

LAND AND REAL ESTATE.

Prior to the war all matters pertaining to the purchase or rental of real estate were handled by the construction and repair division of the Quartermaster Corps.

On May 20, 1918, the following memorandum was issued by the Secretary of War:

The Office of the Director of Purchase, Storage and Traffic shall have sole charge of carrying out the purchase, lease, rental, condemnation or requisitioning of real estate and buildings for the use of the War Department recommended by the operations division, General Staff, and all such questions shall be referred to it for necessary action after approval.

Pursuant to this order the Purchase, Storage and Traffic Division issued instructions on June 22, 1918, as follows:

The chiefs of the several bureaus, corps, and other agencies of the Military Establishment shall report directly to the purchase and supply branch, Purchase, Storage and Traffic Division, any contemplated requirements for real estate or rentals, at the earliest possible date and in as complete detail as possible. *

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In those cases where specific property is desired by the several bureaus, corps, and other agencies of the Military Establishment, it is hereby directed that all requests for the purchase, lease, rental, condemnation, or requisition of real estate and building, shall be presented directly to the purchase and supply branch, Purchase, Storage

and Traffic Division, and that such requests shall furnish specifically and in detail the following information:

(a) Exact location and description of the property wanted.

(b) The need and necessity for the property.

(c) When and for how long the property will be required.

(d) Probable cost; copy of estimates or appraisals, if any. (e) Names of owner or owners, or lessor.

(ƒ) Maps, diagrams, or surveys thereof, showing dimensions. (g) Full legal description of the premises, if possible.

(h) Special conditions, if any, of lease or purchase.

(i) If purchase is requested, state why lease would not be satisfactory. Propositions thus reported will be fully considered by the purchase and supply branch, Purchase, Storage and Traffic Division, in conjunction with the operations division of the General Staff, and if approved by the operations division and by the Secretary of War, the Director of Purchase, Storage and Traffic will proceed to acquire, or direct the acquisition of, the property and will supervise or direct all negotiations relating to such transactions, including the preparation of all leases and other papers in connection therewith.

On July 2, 1918, a supply circular was issued by the Purchase, Storage and Traffic Division, directing

That all bureaus, corps, and other agencies of the Military Establishment transfer to the purchase and supply branch, Purchase, Storage and Traffic Division, all papers and files relating to real estate and rentals transactions.

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It is further, directed that all bureaus, corps, and other agencies of the Military Establishment transmit to the purchase and supply branch, Purchase, Storage and Traffic Division, the names of all persons, both commissioned and civilian, who have been engaged in the preparation and filing of such papers, to the end that such personnel as may be necessary may be transferred or detailed to that office.

On August 26, 1918, "the supervision and direction of all requirements and the procurement and production activities, including real estate of the several bureaus, corps and other agencies of the War Department" were placed in control of the Purchase, Storage and Traffic Division by General Order No. 80, and on August 27, 1918, the Purchase, Storage and Traffic Division issued supply Circular No. 80, reorganizing itself, and creating among others a facilities department, whose duties were "responsibility for and authority over procurement of real estate."

In the memorandum of the Director of Purchase, Storage and Traffic to the General Staff, dated July 18, 1918, subject: "Reorganization of Army supply system," page 5, it is stated:

The purchase of real estate, and the construction, maintenance and repair of buildings and facilities is thought to be a direct function of storage and supply. Whether this opinion is approved or not the function should be found in one self-contained unit or organization located either in the division of operations or the division of supply.

Although the reorganization as outlined in this memorandum was approved by the General Staff, with the exception that "the portion of the plan which puts construction under Purchase, Storage and