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ing out the provisions of this contract by the contractor, the service rendered by each and the amount of compensation.

ART. X. Right to terminate contract.-Should the contractor at any time refuse, neglect, or fail in any respect to prosecute the work with promptness and diligence, or in a manner satisfactory to the owner, or default in the performance of any of the agreements herein contained, the owner may, at the owner's option, after five days' written notice to the contractor, terminate this contract and may enter upon the premises and take possession, for the purpose of completing said work, of all materials, tools, equipment, and appliances, and all options, privileges, and rights, and may complete or employ any other person or persons to complete said work. The contractor shall be paid for said plant equipment in accordance with Article II, less the cost of maintenance and repair thereof. Upon the completion of said work and when so notified by the owner, the contractor shall remove, at the contractor's own expense, said equipment, and upon failure to do so after 10 days' notice, the owner shall have the right to dispose of the same at public or private sale and to turn over the proceeds thereof to the contractor. In case of such termination of the contract, the owner shall pay to the contractor such amounts of money on account of the unpaid balance of the cost of the work and of the fee as will result in fully reimbursing the contractor for the cost of the work and the proportion of the fee earned up to the time of such termination. The contractor hereby agrees that the judgment of the owner as to the amount of such fee, cost, and plant rental shall be final, and that such payments when made shall constitute full setletment of all claims of the contractor against the owner for money claimed to be due to the contractor for any reason whatsoever. In case of such termination of the contract the owner shall further assume and become liable for all such obligations, commitments, and unliquidated claims as the contractor may have theretofore in good faith undertaken or incurred in connection with said work, and the contractor shall, as a condition of receiving the payments mentioned in this article, execute and deliver all such papers and take all such steps as the owner may require for the purpose of fully vesting in the owner the rights and benefits of the contractor, under such obligations or commitments. When the owner shall have performed the duties incumbent upon the owner under the provisions of this article, the owner shall thereafter be entirely released and discharged of and from any and all demands, actions, or claims of any kind on the part of the contractor hereunder or on account hereof.

ART. XI. Abandonment of work by the owner.-If conditions should arise which in the opinion of the owner make it advisable or necessary to cease work under this contract, the owner may abandon the work and terminate this contract. In such case the owner shall assume and become liable for all such obligations, commitments, and unliquidated claims as the contractor may have theretofore, in good faith, undertaken or incurred in connection with said work; and the contractor shall, as a condition of receiving the payments mentioned in this article, execute and deliver all such papers, and take all such steps as the owner may require for the purpose of fully vesting in the owner the rights and benefits of the contractor under such obligations or commitments. The owner shall pay to the contractor on such abandonment such an amount of money on account of the unpaid balance of the cost of the work and of the fee and for the plant equipment as will result in the contractor receiving full reimbursement for the cost of the work, a proper proportion of the whole fee specified in Article V and "G" above, and of the plant equipment, specified in Article II and "F" above. When the owner shall have performed the duties incumbent upon the owner under the provisions of this article, the owner shall thereafter be entirely released and discharged of and from any and all demands, actions, or claims

of any kind on the part of the contractor hereunder or on account hereof.

ART. XII. Indemnification of owner and protection of persons and property. To the extent of liability insurance authorized by the owner, the contractor undertakes to indemnify and save harmless the owner, and for and on account of the owner to make defense against all claims for damages to persons or to property alleged by claimants to have been caused through the negligent performance of any part of the work herein, whether such default be asserted to have been by the contractor or by a subcontractor, or to have been in the performance of a duty to employees, to owners of property, or to members of the public. The contractor shall maintain adequate protection of all of the contractor's property and work, and of the property of the owner involved in or under this contract; and shall further see that all necessary precautions are taken for the protection of adjoining property, sidewalks, curbs, streets, etc., and of all persons lawfully on or near said property. The contractor further agrees to hold the owner or the owner's officers agents, or employees harmless against any claim for any violation or infringement by the contractor or any subcontractor of any letters patent in the course of any work done or material furnished hereunder.

ART. XIII. Bond.-The contractor shall prior to commencing the said work furnish a bond, with sureties satisfactory at all times to the owner in the amount as stated under "I" page 2 above, conditioned upon the full and faithful performance of all the terms, conditions, and provisions of this contract by the contractor and upon the prompt payment by the contractor of all bills for labor, material, or other service furnished to the contractor in so far as this contract so requires, and the satisfaction of all liens or charges against the property or claims against the owner arising through any act or omission of the contractor or of any subcontractor or employee of the contractor. Before final payment under this contract shall be made to the contractor, he shall execute and deliver to the owner a certificate, duly verified, stating that no liens or claims exist by reason of any work performed under this contract which may be chargeable to the owner and that all financial obligations on the part of the contractor and arising out of the work performed hereunder have been satisfied.

ART. XIV. Laws and restrictions relative to labor.-All work required in carrying out this contract shall be performed in full compliance with the laws of the State, Territory, or District where such labor is performed: Provided, That the contractor shall not employ in the performance of this contract any minor under the age of 14 years or permit any minor between the ages of 14 and 16 years to work more than eight hours in any one day, more than six days in any one week, or before 6 a. m. or after 7 p. m. Nor shall the contractor directly or indirectly employ any person undergoing sentence of imprisonment at hard labor which may have been imposed by a court of any State, Territory, or municipality, having criminal jurisdiction: Provided, however, That the President of the United States may by Executive order, modify this provision with respect to the employment of convict labor and provide the terms and conditions upon which such labor may be employed. This provision shall be of the essence of the contract. ART. XV. Eight-hour basic day—Time and one-half for overtime— Damages for violation.-Wages of laborers, operatives, and mechanics doing any part of the work contemplated by this contract in the employ of the contractor shall be computed upon a basic day rate of eight hours' work, with overtime rates to be paid for at not less than time and one-half for all hours in excess of eight hours. Compliance by the contractor with the provisions of this article shall be of the essence of the contract.

ART. XVI. Labor disputes.-In the event that labor disputes shall arise directly affecting the performance of this contract, and

causing or likely to cause any delay in making the deliveries, the Secretary of Labor may settle or cause to be settled such disputes, and the parties hereto agree to accede to and to comply with all the terms of such settlement. If the contractor is thereby required to pay labor costs higher than those prevailing in the performance of this contract immediately prior to such settlement, the Secretary of Labor or his representative in making such settlement and as a part thereof may direct that a fair and just addition to the estimated cost in Article V shall be made therefor, but if such settlement reduces such labor costs to the contractor, the Secretary of Labor or his representative may direct that a fair and just reduction be made from the said estimate. No claim for addition shall be made unless the increase was ordered in writing by the Secretary of Labor or his duly authorized representative, and such addition to the estimate was directed as part of the settlement. Every decision or determination made under this article by the Secretary of Labor or his duly authorized representative shall be final and binding upon the parties hereto. Compliance with the provisions of this article shall be of the essence of this contract.

ART. XVII. Nonparticipation of officials.—It is hereby agreed that no Member of or Delegate to Congress or Resident Commissioner, nor any officer or employee of the United States, is or shall be admitted, directly or indirectly, to any share or part of this contract, or to any benefit that might arise therefrom; but this article shall not apply to this contract so far as this contract may be within the operation or exception of section 116 of the act of Congress approved March 4, 1909 (35 Stat., 1109), or of section 1 of the housing act above mentioned.

ART. XVIII. Right to transfer.-Neither this contract, nor any interest therein, shall be assigned or transferred by the contractor. (See sec. 3737 R. S., U. S.)

ART. XIX. Settlement of disputes.—This contract shall be interpreted as a whole, and the intent of the whole instrument, rather than the interpretation of any special clause, shall govern. If any doubts or disputes shall arise as to the meaning or interpretation of anything in this contract, the owner's decision shall govern, and if the contractor shall consider itself (himself) prejudiced by any decision of the owner made under any provision hereof, the contractor shall have the right to submit the same to the Secretary of Labor, whose decisoin shall be final and binding upon both parties hereto. But said reference shall be taken within 15 days after said decision of the owner.

ART. XX. Owner's control of work. The contractor shall, in the performance of this contract, comply with and be bound by all directions, instructions, and decisions of the owner or of the owner's authorized representative, who shall have general supervision and control of the work; and compliance by the contractor with any such directions, instructions, or decisions shall be a justification of and protection to the contractor for any action so taken. The owner shall have the right to suspend or dismiss any of the contractor's assistants or employees in said work at any time should the owner deem it to be to the best interest of the work or of the owner so to do.

ART. XXI. Warranty against commissions.-The contractor expressly warrants that the contractor has employed no third person to solicit or obtain this contract or to cause or procure the same to be obtained upon compensation in any way contingent in whole or in part upon such procurement; and that the contractor has not paid or promised or agreed to pay to any third person in consideration of such procurement or in compensation for services in connection therewith any brokerage, commission, or percentage upon the amount receivable by the contractor hereunder; and that the contractor has not, in estimating or fixing the contract price herein, included any sum by reason of any such brokerage, commission, or percentage; and that all moneys payable to the contractor

hereunder are free from obligation to any other person for services rendered, or supposed to have been rendered, in the procurement of this contract. The contractor further agrees that any breach of this warranty shall constitute adequate cause for the annulment of this contract by the owner, and that the owner may retain from any sums due or to become due hereunder an amount equal to any brokerage, commission, or percentage so paid or agreed to be paid.

ART. XXII. Inurement and definition. This contract shall bind and inure to the contractor and its (his) successors. It is understood and agreed that wherever the word "owner" is used herein, the same shall be construed to include the Director of the Bureau of Industrial Housing and Transportation in his official capacity, or his duly appointed representatives or successor in office, or any agency which may be designated or created to carry out the provisions of the housing act above mentioned, and this contract may be formally assigned to such agency.

Witness the hands of the parties hereto the day and year first above written, all in triplicate.

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(a corporation organized and existing under the laws of ..), surety, are held and firmly bound unto the United States Housing Corporation in the penal sum of dollars, lawful money of the United States, for the payment of which, well and truly to be made to the United States Housing Corporation, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by this presents.

The condition of the above obligation is such that whereas the said principal has entered into a certain contract, hereto attached, with the United States Housing Corporation (therein called the owner) dated now, if the said principal

shall well and truly perform and fulfill all the undertakings, covenants, terms, conditions, and so forth, of said contract during the original term of said contract or any extension of said term which may be granted on the part of said owner without notice to said surety, or during the life of any guaranty required under said contract; and shall also well and truly perform and fulfill all the undertakings, terms, conditions, and so forth, of any and all duly authorized modifications of said contract which may hereafter be made, notice of which modifications to said surety being hereby waived; and shall promptly make payment, as and when required by said contract, to all persons supplying labor, materials or other service in the prosecution of the work provided for in said

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APPENDIX XXI.

HAMPTON ROADS DISTRICT.

The war program-The labor problem-Preliminary action-Selection of sites-Preliminary organization and activities-Organization of branch office-Development of community facilities-Effect of armistice on program-Operation of properties.

THE WAR PROGRAM.

Hampton Roads district comprised what is known as Tidewater Virginia and included activities around Norfolk, Portsmouth, Fortress Monroe, and Newport News. At the beginning of the war there were located in this district one of the principal navy yards, known as the Norfolk yard, though actually in Portsmouth; the naval magazine at St. Julians; the naval receiving ship at St. Helena; naval hospital at Portsmouth; the new naval base under construction at Sewalls Point, Norfolk County; and one of the largest shipyards, known as the Newport News Shipbuilding & Dry Dock Co.

The magnificent harbor and port with a concentration in it of the terminals of seven trunk line railroads and three of the most important coaling terminals of the Atlantic coast marked this region as one of great prospective military importance, and it soon became apparent that perhaps only next to New York, Hampton Roads (that is, Norfolk and Newport News) would be the great port of embarkation for troops and military supplies.

It became evident that such a program would entail huge preparation in the way of construction of detention and transit camps for troops awaiting embarkation, animal and supply depots, storehouses in vast proportion; magazines and ordnance stations for material awaiting in transit and for the assembly of ammunition and munitions of war; extension of terminals and docks, coaling facilities; additions and extensions to shipbuilding plants; both of the private yards and of the navy yard.

The city of Norfolk claimed a population of about 83,000 people, the city of Portsmouth 40,000, and Newport News 30,000, with probably a scattering in Norfolk County on the Norfolk side and in Warwick County on the Newport News peninsula of 20,000 more. The working population found employment in the Norfolk Navy Yard, the Newport News Shipbuilding Co., at the coaling piers, and in connection with the railroads. There was no manufacturing of note, so that those finding work other than that enumerated were employed in branches of work incidental to these, serving the population performing vital work for the United States Government, and were therefore indirectly a necessary part of the military and naval establishments.

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With the entrance of the United States into the World War there was already a heavy tax on the port of New York and other northern ports. In consideration of the many advantages of Hampton Roads and Norfolk as a port, all of the work incident to the upbuilding and development of this great military terminal was taken up with orders to rush to completion. This involved, in brief, on the part of the War Department, embarkation camps and Camp Stuart, Camp Hill, Camp Morrison, animal embarkation depots, and corrals, storehouses and trackage on the Newport News side for the Army; artillery instruction school at Fortress Monroe; heavy artillery camp and proving ground, Camp Abram Eustis; construction and development of Langley Field (Army aviation); taking over and improvement of Chesapeake & Ohio piers, Newport News; Chesapeake & Ohio coaling pier; construction of ordnance depot; embarkation station at Pig Point, Nansemond River; taking over of Norfolk & Western Railway piers; construction of a pier and the improvement and building of warehouses for engineer materials for embarkation at Lambert Point; buildings of a new Army terminal on the Norfolk side known as the Army base; increased work at Cape Henry and Fortress Monroe and immediate steps to secure a 40-foot channel into the inner harbor. For the Navy Department, development of the Smolle tract, new dry docks, building ways, shops, various incidentals, rushing to completion the work at the naval operating base including the supply depot for the fleet, training station for 28,000 men, aviation station, construction of magazines, mine filling and loading plant at St. Julians, construction of a fuel-oil depot for the fleet at Yorktown and location of an ordnance station at the same place, expansion of the facilities of the Newport News Shipbuilding & Dry Dock Co., in which the United States Shipping Board Emergency Fleet Corporation had a hand, together with munition work by private enterprise at Penniman and Williamsburg, in all involving new war work to the extent of about $200,000,000.

THE LABOR PROBLEM.

It at once became apparent that the skilled and unskilled labor required in such a project, together with skilled and unskilled labor required in the expansion of the military or allied military activities in the district existing before this, was far beyond the

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capacity of the population then existing in the district. As an example, the Norfolk Navy Yard employed about 4,000 men before the war. With the inception of the preparedness program at the beginning of the war and in the early days of the war they employed about 8,000, and it was estimated that to utilize the shops, ways, and docks under construction it would be necessary to employ from 12,000 to 14,000 men. The Newport News Shipbuilding Co. employed on shipbuilding and on ship repair work at the beginning of the war about 8,000 to 9,000 men, and estimated that to utilize the expanded plant to the fullest advantage would require 16,000 men.

The cities of Norfolk, Portsmouth, Newport News, and outlying districts were soon congested and overflowing with newcomers attracted by the call to work. The United States Bureau of Industrial Housing and Transportation was then nonexistent and only proposed; no legislation had been passed or money appropriated for housing purposes. The Navy Department furnished funds outside of the naval operating base for a labor camp to house about 500 men, and also funds at the navy yard for barracks in the yard to house about 400 men. The Army at Newport News Army base and at Pig Point erected labor barracks to care for the labor required on their own projects. The Emergency Fleet Corporation of the Shipping Board, whose housing division came into existence before the Bureau of Industrial Housing and Transportation, through arrangement with the Old Dominion Land Co., a subsidiary of the Newport News Shipbuilding Co., laid out and started the housing development at Hilton outside of Newport News.

PRELIMINARY ACTION.

With the requirements for additional accommodations for temporary and transient labor, the Navy Department advanced to the Bureau of Industrial Housing, then authorized by law but without appropriation, $100,000 for the organization of its work, and besides that, under its own authority with its own funds, built a third labor camp of 1,000-men capacity outside the navy yard.

In February, 1918, the Housing Corporation selected the firm of George B. Post & Sons to inquire into the housing conditions in the vicinity of Norfolk.. In the meantime, by reason of the congestion previously referred to and the great demand for labor and the insistent orders from various Government departments in Washington to push to early completion all of the work in this district, it became apparent that regulations for the supply and distribution of labor and materials and some order of priority or precedence would have to be established. Need for such regulation was first apparent to the two military departments-War and Navy-who organized a joint control under the direction of Brig. Gen. Hutcheson, com

mander of the port of embarkation, and Capt. R. C. Hollyday, of the navy yard. Shortly thereafter other Government departments having interest in the district saw the necessity for joining in this coordination of work and expanding the functions of the local organizations, and there was organized the Board of Control of War Construction Activities, representing the War, Navy, Department of Labor, Employment Service, Bureau of Industrial Housing and Transportation, Shipping Board, Emergency Fleet Corporation, Railroad Administration, and the Fuel Administration.

The Bureau of Industrial Housing and Transportation selected Rear Admiral F. R. Harris, president of this board, to represent it on the board and requested him to cooperate with George B. Post & Sons, their architect, in a study of the labor and housing conditions in this district. The latter firm detailed Mr. Ralph S. Warner, of that firm, to Norfolk. In the meantime Rear Admiral F. R. Harris was made deputy director of housing, the Housing Bureau securing the services of Mr. C. A. Nicholls as assistant to the deputy director. Work was immediately taken up of organizing local offices of the homes registration service and ascertaining how additional industrial workers could be housed in the district. Studies were made by Mr. Warner of the requirements of various undertakings in hand and of the shortage of skilled and unskilled labor, and especially of the housing accommodations required for the more permanent or stable skilled labor of the navy yard, Navy and Army bases, and the shipbuilding company. It was ascertained at that time that there was a shortage of over 35,000 skilled and unskilled laborers, even though the population of Norfolk, Portsmouth, and outlying regions had increased from 170,000 to approximately 250,000.

Shortly thereafter the appropriation bill for the Housing Bureau having been enacted under authority of law, the subsidiary corporation was formed, and it was decided to provide on the Portsmouth side for the navy yard 750 houses for white workers and 250 houses for colored workers; on the Norfolk side 500 houses for white workers at the Navy and Army bases, it being well understood that this would merely initiate the work of providing houses for industrial war workers. It was realized the problem was an exceedingly difficult one in view of the fact that construction of so many homes involved again a large draft on the skilled and unskilled labor supply of the building trades where there was already a huge shortage for the war construction work in hand. Much time was spent by Mr. Nicholls and Mr. Warner in considering available sites and parcels of land for the projects in mind. Mr. Warner, with the assistance of Mr. Nicholls, conducted hearings at the navy yard, and conferred

1 Later decisions are shown in the table on p. 392 of Vol. II.

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