CHAPTER XVI

BUILDINGS AND LANDS

One of the major industrial activities conducted in the United States

during the war was the construction of buildings for the Army. The

Army’s physical plant, as it existed on the day war was declared, was

entirely inadequate for the forces to be mobilized--so inadequate as

to be of almost no use at all. Even the old headquarters of the War

Department in Washington, which formerly had housed practically all the

administrative offices, were none too large to accommodate merely the

office staffs of the Secretary of War and his principal assistants,

so great was the expansion of the central administration; and as for

the tens of thousands of officers, clerks, stenographers, messengers,

and other _personnel_ employed by the great producing and operating

bureaus, they occupied literally miles of flimsy, unsightly “war

buildings,” which spread out like a defacing rash over the fair open

spaces of the capital city.

An even greater expansion of plant was to be observed throughout the

country. The plant set up for the Army mobilized against Germany was

a practically new creation, specialized for exactly the sort of war

in which we were engaged. It was a war in which land transportation

had to be linked to ocean transportation, and therefore the plant

included vast facilities for the embarkation of troops and a string

of mighty export terminals, or bases, strung out along the coast in

order to make difficult any blockade of our overseas supply line.

It was a war essentially industrial in type, with unusual emphasis

laid upon the development of special industrial products, such as

powder and explosives; and therefore the plant included dozens of new

mills and factories, several of them industrial centers so large as

to be virtually small cities in themselves, with housing and modern

municipal conveniences for their employees. It was a war in which

new and hitherto unknown forms of combat had sprung into existence,

and therefore the plant included equipped fields for the training

of soldiers in such arts as flying and the employment of poisons

as weapons. Above all, it was a war which called upon the ultimate

resources of American man power; and, as it turned out, the plant had

to be adequate to house, school, amuse, care for, and maintain at least

two million men, with all that that implies in barracks, drill grounds,

parks for vehicles, water and sewer systems, lighting systems, roads,

hospitals, and (in the maintenance line) depots and warehouses for

supplies.

It was all fresh creation, new construction. The building industry of

the United States--and it is one of the largest and strongest of our

industries--had never before been called upon to provide such expansion

in an equal time. It follows that the entire building industry must

have been engaged in the construction enterprise, that every available

man who could drive a nail or lay a brick must have been employed

upon government work. If he was not, he should have been; for those

in charge of the construction, unable to secure sufficient labor from

the entire building industry of the United States, sent ships to Porto

Rico and the Bahamas and brought back thousands of workmen to help out.

The Construction Division, the war-begotten organization which was in

charge of this activity, with 427,000 men on its contractors’ pay rolls

at the peak of its industriousness, yielded only to the United States

Railroad Administration the title of greatest employer of war labor.

It engaged in 581 separate construction projects, which called for an

expenditure of over $1,100,000,000; and it completed most of them.

Miles of docks, hundreds of acres of covered storage, hundreds of

power plants and complete water systems, thousands of miles of roads,

railroads, water mains, and sewer lines--the list grows monotonous

simply because of the size of its items, which are not to be visualized

by stating them in terms of acres and miles. The activity was at its

height at the signing of the armistice, when it became incumbent upon

the Construction Division to terminate the work.

Four hundred and fifty army construction projects were under way on the

day of the armistice. One hundred and thirty-one stood completed. The

incomplete projects included some of the largest and costliest ones.

But the salvage value of buildings is small unless they can be sold to

purchasers able to make use of them as and where they stand. Few war

buildings were adapted to civilian use. They were highly specialized

for a purely war use, and they were not often located where they could

be of economic benefit to the country. A large part of their cost

represented the evanescent element of labor, a value entirely destroyed

when buildings are wrecked for the sake of salvaging their materials.

The war plant, even incomplete, represented an immense investment,

but one which would be almost altogether lost if the plant were to

be knocked down for salvage. Therefore it was of advantage to the

Government to carry on a surprisingly large amount of war construction

after the armistice for the sake of getting the use-value from its

investment by occupying these installations with the permanent Army.

But there were other reasons for continuing work. Among the largest

and costliest of the construction projects were those which provided

the ocean terminal bases at Boston, Brooklyn, Philadelphia, Norfolk,

Charleston, and New Orleans. These installations were all of durable,

fireproof construction; and, with their piers, their great warehouses

equipped with labor-saving machinery, trackage, and the like, they were

the last word of modern constructional science in developments of this

sort. In appropriating the money for these port works, Congress had

stipulated that after the war they should be used in the development

of American foreign trade. Consequently the Construction Division went

ahead after the armistice and finished up these buildings.

The port works alone were enough to account for a large portion of the

money expended on construction after the armistice, but in addition

other great unfinished projects were carried through. As we have shown,

the storage problem became acute only after the armistice, when the

wasteful field consumption of supplies ceased and the materials coming

from the war factories banked up in this country. Every warehouse and

depot project incomplete on the day of the armistice was pressed to

completion thereafter in order to provide shelter for valuable and

perishable materials. This was another great branch of post-armistice

construction. Add to these the continued construction of hospitals

(which had to be prepared to receive the thousands of wounded men

in France on the day of the armistice), and it becomes evident why

thousands of the war builders were kept on the job after the war itself

had come to an end.

The fate of every incomplete army construction project on the day of

the armistice was submitted to the Operations Division of the General

Staff, which looked at the percentage of completion, noted whether

the Government owned the ground on which the construction was going

forward, studied the availability of the building for commercial

use, and determined whether it was needed in the military plans, and

then recommended that the construction be abandoned, curtailed, or

completed. In general, the projects abandoned were those providing

additional facilities for the assembling and training of troops and

those providing plants for the production of destructive munitions,

such as toxic gas, powder, and loaded shell. Of the 450 projects

incomplete on the day of the armistice, 182 were abandoned and 268

carried through.

The completion of so large a quantity of the war construction after

the armistice enabled the Construction Division to go through the

demobilization of its industry without accumulating large stores of

surplus materials. Although in form, at any rate, the Division dealt

directly only with contractors who took the various jobs, actually the

Division itself procured the lumber, cement, brick, structural steel,

roofing, hardware, and the like, for the builders. The demand of the

war construction upon the supplies of building materials was so great

that nothing less than a centralized stimulation and control of the

entire market could have procured the materials in the quantities

needed. The Construction Division’s Procurement Division located the

supplies and then arranged each building contractor’s deals for them,

even stipulating the producers, quantities, and the prices which

must be paid for materials. This last was important, because the

war builders worked under a sharply safeguarded cost-plus contract

form, and therefore the Government was keenly interested in what the

materials cost. In addition to procuring supplies for the contractors,

the Procurement Division also purchased equipment for the war

buildings--heating, ventilating, and power plants, fire extinguishers,

refrigeration equipment, boilers, engines, and machinery of many sorts.

Its purchases ran at the rate of $2,000,000 a day in the early autumn

of 1918.

After the armistice and after the temporary suspension of effort

requested in order to give the Construction Division time in which

to take stock of its position, the production of building materials

and supplies of which the Government would be able to make no use was

rapidly terminated. The Procurement Division was made up of experts in

all branches of building construction, and therefore this Division was

made over after the armistice into the Construction Division Claims

Board for liquidating its war business under the direction of the War

Department Claims Board. In six months practically all the terminated

contracts had been finally settled by this organization, at an average

cancellation cost of 5 per cent of the face value of the contracts.

The termination of supply contracts and of contracts with constructors

of buildings not needed by the War Department after the armistice,

left the Construction Division with large quantities of supplies on

its hands. But these were by no means surplus supplies. The completion

of a large quantity of war construction after the armistice saved the

Construction Division from having to solve the problem of disposing of

much surplus. Supplies accumulated for the terminated jobs were simply

diverted to those ordered completed and thus utilized.

But although the Division had no large quantity of building supplies

to sell, it was charged, after the armistice, with the duty of

disposing of the facilities at the 182 construction projects which

were terminated. Many of these projects were large ones, those in this

category being for the most part training camps for troops. There

was a camp shortage in 1918, and the Construction Division was doing

everything in its power to overcome it. We were sending men overseas

at the rate of 300,000 a month; and, since it was desirable to give

every overseas soldier at least six months’ training, that implied

camp accommodations for 1,800,000 men in the United States. The actual

accommodations provided were for less than 1,370,000 troops. In 1918,

after the augmented rate of embarkation became a fact, new training

camp projects were consequently inaugurated at frequent intervals. Only

a few days before the armistice the Construction Division began the

construction of an enormous new camp which was to specialize in the

training of infantry. All the national guard camps (sixteen of them)

and most of the special-purpose camps, whether completely built or not,

were condemned after the armistice for salvage. Most of these were

veritable cities, some of them large enough to accommodate 40,000 men

each, comfortably--with the adverb accented, for the comfort was based

on such substantial (and costly) installations as water and sanitation

systems, electric lighting, pavements, sidewalks, and even stores,

theatres, and gymnasiums. It was the task of the Construction Division

to dispose of these cities to such members of the public as cared to

buy.

A city, however, is something more than an accumulation of buildings

and other tangible facilities. Quite as much as upon foundations of

rock, a city rests upon logic--the logic of its location. Naturally the

Government built its camps upon cheap land, therefore upon land not

in demand by the population, therefore upon land not so located as to

make it a logical place for a city. And so, although it was thought at

first that perhaps some of these camps might prove to be the nuclei of

permanent civilian communities, that notion soon had to be abandoned

for the reason that few civilian movements arose to occupy permanently

the former war buildings. An attempt was made, and still is being made,

to use the former Nitro Powder Plant as a permanent civilian industrial

city, and one or two training camps in the South have been held

together by their purchasers with the idea of establishing communities

on their sites. The others, however, in which the Government had sunk

hundreds of millions of dollars, were sold out to the wreckers, who

bought them for the sake of salvaging the building materials.

Now, there is nothing quite so second-hand as second-hand building

materials. Boards are full of nail holes and sometimes covered with

faded paint or disfiguring marks. Bricks are soiled, chipped, and worn,

and conglomerated with stonelike mortar. Hardware and metallic fixtures

are corroded and rusty. Such materials are not only wreckage and

junk, but not even valuable junk. The chief cost in the construction

of a training camp was the labor which laid the brick, installed the

underground piping, smoothed, squared, and nailed up the lumber, and

soldered the joints in the plumbing. All that labor value was lost when

camps were salvaged for their materials.

Yet this was not the only loss which the Government was forced to

sustain. Practically all the camps were originally located on leased

ground; and this fact implied that in razing the camps the Government

was bound to restore the land to its original condition, or, in

lieu of that, to pay to the owners the costs of restoration. These

questions of property damage greatly complicated the demobilization

of the training camps, because the amounts of damage were so hard to

ascertain. Concrete roads had been laid across what were originally

pastures; fertile corn lands were crisscrossed with clay ridges thrown

up above the water and sewer trenches. On the other hand, some of the

camp improvements had drained former swamps and reclaimed them for

cultivation, and such benefits would offset damages in other places. It

was out of the question for the Government to attempt to settle these

thousands of cases individually, because of the time it would take;

and therefore it was stipulated that the purchasers of the camps must

assume all liabilities for property damage and hold the Government

harmless from claims that might later be pressed in the Court of

Claims. Naturally the purchasers made allowances for these damages in

their bids, and wide allowances, too, since the extent of the damages

was largely conjecture. This consideration further depressed the prices

paid by the purchasers.

The result was that the salvage of abandoned army camps brought back

to the Government only a small fraction of the money put into them.

Actually in scores of instances it would have been cheaper for the

Government to abandon the improvements to the landowners in return for

quit-claims for the property damage. Public policy, however, prohibited

such a short-cut method. Some of the leased sites had been donated to

the Government before the armistice at the nominal rental of $1.00 a

year or some other slight sum; but afterwards the chambers of commerce

and other civic agencies which had made these concessions, for the

sake of securing camps near their communities, refused to renew the

arrangements, and the War Department was forced to pay regular rentals.

Here was a consideration to force the sale of the camps on any terms

possible. The chief lesson learned from the war construction enterprise

was that the Government should buy and not lease a site when the value

of the improvements is to exceed the value of the site itself. Only

by holding such property for permanent use or gradual sale can the

Government get value received for its investment.

In general, the salvage recovery from camps and other installations

sold after the armistice amounted to about 15 per cent of the money

invested in the original building materials. All labor values were

lost. All wastage of materials in construction and demolition was loss.

Many materials such as cement and concrete, road material, roofing,

wood-stave piping, sewer piping, and so on, were a complete loss. The

attention of the reader is invited to some typical shrinkages in value.

+----------------------------------------------------+

| _Project_ _Original Cost_ _Salvage Recovery_|

+----------------------------------------------------+

|Camp Beauregard $4,300,000 $ 43,000 |

|Camp Bowie 3,400,000 110,000 |

|Camp Hancock 6,000,000 75,000 |

|Camp Logan 3,300,000 137,000 |

|Camp Wadsworth 4,000,000 95,000 |

|Camp Wheeler 3,200,000 144,000 |

+----------------------------------------------------+

Note, however, that in disposing of these camps, the Government

retained practically all the storage and hospital facilities.

During the year following the armistice the Construction Division

disposed of fourteen national guard camps, three embarkation camps,

sixteen special and regular training camps, four flying fields, four

hospitals, and many small groups of buildings. For these the Government

received about $4,215,000. In addition, parts of many other camps were

sold; also construction materials of practically every sort.

The most spectacular accomplishment of the Construction Division

before the armistice was the building of the cantonments, the primary

training camps which housed the soldiers summoned into the military

service by the Selective Service Law. These were much more substantial

installations than the national guard camps, the salvaging of six

of which was noted in the tabular statement above. The national

guard camps provided only tentage for the shelter of troops, whereas

the cantonments housed their inhabitants in stanch wooden barrack

buildings. A cantonment cost from two to three times as much as a

national guard camp. Yet, on three months’ notice, at the beginning

of which not even the sites had yet been selected and acquired, the

Construction Division prepared sixteen cantonments ready to receive the

first inductives called to the colors.

The cantonments originally were all built upon leased ground. It was

evident that, if the Government were forced to vacate the ground to the

owners, the cantonments, salvaged for their building materials, would

bring no greater recovery percentage of their cost than did the tentage

camps. The Government’s loss, in such an event, on each cantonment

would be twice or three times what it proved to be on the national

guard camps. Before the end of the war was in sight the Construction

Division had anticipated demobilization by presenting a plan to the

Secretary of War for the purchase of the sites of the cantonments.

Purchase would accomplish several desirable ends. As long as the

cantonments were in use it would save the payment of rents. After the

war was over, if the cantonments were retained by the Army, it would

give the cantonments their full use-value, which was every penny they

had cost. If, on the other hand, the decision was to dispose of them

after the advent of peace, then ownership of the sites would permit the

Government (1) to market the materials gradually and avoid beating down

prices by glutting the market; or (2) to sell buildings intact, with

the land on which they stood; or (3) to sell entire cantonments as they

stood, together with title to the lands. Any one of these methods of

disposition would bring a far greater salvage return than the forced

sale of the materials and the payment of property damages.

In March, 1919, the Assistant Secretary of War directed that the leased

sites of fourteen of the cantonments--namely, Camps Custer, Devens,

Dix, Dodge, Gordon, Grant, Lee, Jackson, Meade, Pike, Sherman, Taylor,

Travis, and Upton--be acquired by purchase. The investment in these

cantonments was approximately $155,000,000. By continuing to use the

cantonments, the War Department could get full value received for the

money expended. By salvaging them after the manner of disposing of the

national guard camps, the Government might recover $4,000,000 at the

outside estimate. By selling the materials gradually or the buildings

intact with lands, the recovery could be expected to run as high as

$48,000,000. The business logic of the proposition was irresistible.

The purchase of this vast quantity of land was undertaken by the

Construction Division. After the commanding officers at the cantonments

had indicated what boundaries should be included, the Division sent

out its field forces--on April 21, 1919. First to go to work were

engineers and surveyors to fix accurate boundaries and secure complete

metes-and-bounds descriptions of the properties. Contracts were drawn

with various responsible title companies to make search of the land

titles and to guarantee them with title insurance. Next followed

acquisition officers who closed sale contracts with the private owners.

The sale contracts were finally signed in behalf of the Government by

competent officers. With the acquisition officers traveled disbursing

officers of the Finance Service who stood ready to pay spot cash for

the lands the moment the sale contracts were signed. So rapidly was

this work carried on that in two months the Government had acquired

ownership to more than half the area on which the fourteen cantonments

stood. A year later about 55,000 acres had passed in fee simple to

the United States at a price of $6,762,000. Considerable property was

yet unacquired; but, although it had been estimated that the sites

would cost ultimately $9,657,000, the indications then were that the

Government would secure them for not more than $8,115,000.

It was found to be impossible, however, to secure all the property so

simply and easily. Some owners would not sell at reasonable prices;

other owners could not be found; still others were under legal

disabilities which prevented them from selling. In such instances the

recourse of the Government was condemnation of the lands. Proceedings

were instituted eventually to condemn some 22,000 acres for government

use. The condemnation proceedings were conducted by the Department of

Justice, which found this work to be one of great magnitude.

One of the interesting war developments in the United States was the

change in the attitude of the War Department toward real estate.

Before the war the various bureaus and other agencies of the War

Department acquired their own real estate by lease or purchase as

they needed it and as they could secure authority to procure it.

The war itself resulted in an intense demand for real estate by the

War Department as sites for its war buildings or as quarters to be

occupied under lease. Real estate, therefore, came to be regarded as

a commodity in the supply of the Army; just as much a commodity as

food or ammunition. And, as the procurement of other commodities was

eventually administered and controlled by a centralized agency, so the

centralized procurement of real estate was placed in the hands of a new

organization called the Real Estate Service.

The Real Estate Service acted as the Army’s real estate agent. The

various bureaus still originated the projects for the acquisition of

property, and then the Real Estate Service acquired the property as

agent for the bureaus. The Service was composed of experts who saw to

it that deeds and leases were correctly drawn and that the Government

made good bargains.

The armistice, if anything, meant increased effort for the Real Estate

Service, since the problem of the storage of surplus supplies was to

be solved only by the acquisition of space. It was also necessary to

dispense with high-priced locations, essential as they had been during

the actual hostilities, and to substitute more economical facilities.

Many of the War Department’s war factories had been built on leased

sites, and it was necessary to purchase these sites wherever it was

expedient for the Department to retain the factory as a preparedness

asset or where it was good business to buy the land in order to sell

the factory advantageously.

Although few obstacles had been thrown in the way of the War Department

in purchasing property, it was discovered after the armistice that,

because of existing and obsolete laws, it was most difficult to sell

any. Up to the declaration of war the law which controlled this

function provided that war department lands useless for military

purposes should be sold _by the Secretary of the Interior_. When this

law was enacted (1884) most of the lands occupied by the Army had come

from the public domain, and it was logical to turn them back to that

source when the War Department was through with them. In May, 1917,

Congress authorized the War Department itself to sell national guard

target ranges. In July, 1918, Congress authorized the President to

sell, _through the head of any Executive Department_, lands acquired

after the declaration of war against Germany to be the sites of war

factories. In July, 1919, Congress authorized the sale under identical

conditions of lands acquired for storage purposes. These, however, were

the only exceptions granted to the original rule. In fact, when the War

Department went about the purchase of the fourteen cantonment sites

for the possible purpose of selling these lands later and thus getting

better prices for the buildings on them, it did so with the knowledge

that it would take a special act of Congress to authorize such a sale.

Congress, without warning, attached a rider to the appropriation

bill which was approved on July 11, 1919, forbidding the expenditure

of any more money at all in the purchase of real estate by the Army

except at the national guard camps or at the cantonments in use before

November 11, 1918, and also except where the purchase of sites of

industrial plants was necessary to protect the Government’s interests.

The Secretary of War ruled that the fourteen cantonments then being

purchased were exempt from this inhibition, but the law abruptly put an

end to projects of the Real Estate Service to buy some 300,000 acres

at a cost of $8,000,000. At that time the Service was buying 115,000

acres of land at Columbus, Georgia, to serve as an infantry school of

arms, 120,000 acres at Fayetteville, North Carolina, to be an artillery

range, and several other large acreages for various military purposes.

The project to acquire Camp Humphreys, the Engineers’ camp in Virginia

near the city of Washington, about 4,000 acres, was allowed to go

through.

[Illustration:

_Photo from Construction Division_

WEST INDIAN LABORERS EMBARKING FOR HOME]

[Illustration:

_Photo from Construction Division_

VIEW OF CAMP SHERMAN]

On the first day of the armistice the War Department was a party to

leases obligating it to pay $13,000,000 in rentals annually. By the

end of December, 1919, the Real Estate Service had made a large net

reduction in the number of leases, and the annual rent bill had dropped

to approximately $5,000,000, although in that interval the Service had

acquired by lease hundreds of millions of square feet of new storage

space.

[Illustration:

_Photo from Quartermaster Department_

IN AN ARMY RETAIL STORE]

[Illustration:

_Photo from Quartermaster Department_

CUSTOMERS AT OPENING OF ARMY RETAIL STORE]

Demobilization · 第 16 / 19 章