bureau. Here they were assigned to one of the architectural examiners. It was his province to check the general requirements of the plans, pass them through the sections equipped for checking the mechanical work, see that specifications were checked in due course, and review the plans with the Operating Division, whose function was to equip and manage the properties. The plans were then returned to the project architect.

In this manner the plans were gradually developed by the architect in touch with local conditions and revised by the Architectural Division in the light of its previous studies and intimate knowledge of the many requirements of housing operations. When completed, they received final approval of the Architectural and Operating Divisions and were turned over to the Construction Division for the letting of contracts.

In employing architects those have been chosen whose known experience and ability, professional standing, and general equipment offered the best guaranty of efficient service. Given these requirements, the policy has been followed of choosing individuals or firms practicing at or near projects, so far as that has been practicable. Their terms yield to the architects a margin of profit far below that which they commonly make and are deemed entitled to. It has been conceived as war service and generally accepted in a spirit of patriotic unselfishness. All pay rolls had to be submitted to the bureau for approval; overtime work has been allowed and was necessary, but no additional rate therefor has been permitted, except in one case, where the well-established practice of a large city could not be advantageously set aside.

There were employed 52 architects, each of whom has provided for this work from 2 to 24 assistants, making the total force so engaged about 450, including the field forces required during actual construction. Plans for some 80 projects were passed by this division through the successive steps of study from first sketch to working drawings, checking even to the smallest details of construction, plumbing, heating, electric wiring, and specifications. Over 5,000 sheets of drawings have been made by the project architects and checked and approved by the division. The projects so designed range in extent from those providing housing for 10 families to those housing 2,000 families. Altogether, plans were drawn for dwellings for over 21,000 families and for over 23,000 single men or women. (See Vol. II, p. 386 to 434.)

ECONOMIES THROUGH PLANNING. Considerable economies have been effected by the use of standardized plans and standard materials in large-scale operations. The heating and plumbing

examiners have worked out in their respective fields very complete and detailed systems specially applicable to the class of work involved and resulting in large and important economies worthy of permanent adoption universally. One example (in plumbing) is the elimination of back venting, required by most building departments, but unnecessary in small houses. In improvements of this sort, such as the recirculating system for hot-air furnaces, permitting reduced size of grates and simplified runs of pipes, along with many economies in the use of materials arrived at in consultation with the War Industries Board, great savings have been actually effected, and the way to potential savings of vast magnitude in the future pointed out. (See Vol. I, p. 183, and Vol. II, p. 512.)

As building operations were begun, it became evident that there would be a conflict between the building standards adopted by this corporation and the requirements of many local building departments. In numerous cases, all discrepancies with Government methods were waived. In other cases, where cities were jealous of their rights, negotiations were undertaken which resulted in persuading the authorities to accept methods considered safe and satisfactory by this corporation in lieu of previous requirements which in many cases were extravagant in money, materials, and labor without any compensating return in increased safety or better conditions.

As the intensity of the war demand constantly grew it exercised a profound effect upon the kind and quantity of building materials available throughout the country and, in cooperation with the War Industries Board, it became necessary to make frequent revision of the program concerning them. The division's original standard details were entirely revised, and this work would have been carried through the remaining details in its book of standards had the war been prolonged through the winter. The millwork details completed just before the signing of the armistice may prove of considerable value in simplifying mill details throughout the country and tending to standardize building methods so far as millwork is concerned.

LETTING CONTRACTS FOR CONSTRUCTION.

After the housing program for a community had been determined and after the sites had been chosen and plans drawn, estimates were made by the Requirements Division of the cost of the proposed buildings and improvements. As building materials were purchased through the Construction Division of the Army their fixed prices were used as a basis for such estimate. Meanwhile a list of available contractors within a reasonable radius of the project had

been compiled and private confidential reports concerning the financial standing and business ability of the contractors had been secured. Questionnaires were sent to all of the contractors making application and to others whose names had been given to the corporation. Five or more contractors were then selected with the approval of the president of the corporation, and drawings, specifications, and other data which would help them in understanding the nature and scope of the work were sent to them for bids.

As the congressional act under which the Housing Corporation operated prohibited cost-plus-percentage contracts, a new contract form was drawn up, providing for reimbursement on the basis of cost plus a fixed fee and a fixed plant rental. (See pp. 202, 351, 364). In many of the contracts there was also a penalty and bonus clause. Each contract was awarded to that contractor whose bid was, in the main, lowest in price as to fee and plant rental but the relative responsibility of the contractor was considered, and as speed was the main consideration a great deal of weight was given to this item. (See p. 203.)

SECURING MATERIALS.

The materials procurement branch of the Construction Division was established to procure materials for the individual contractors. Detailed arrangements had to be made with the War Industries. Board and the United States Railroad Administration. This branch prepared and approved requisitions for materials, determined prices, located sources of supply, received proposals, issued purchase orders, inspected and expedited materials, and insured their prompt transportation. The purchasing facilities of the Construction Division of the Army were utilized to allocate, order, inspect, and expedite the production of most materials. To avoid delays some materials were purchased in the local market. By the above means at the time of the armistice almost $30,000,000 worth of material had been ordered, the purchases averaging almost $1,000,000 a day in the latter part of October, and carload shipments numbering 2,000 per week.

SUPERVISION OF CONSTRUCTION.

Promotion, checking, and supervision of the work of the contractor was provided by the executive staff of the corporation and of the Construction Division, and through the mechanism of project managers in the Washington office, traveling supervisors, and a works superintendent, who with his staff was stationed on each project.

THE PROJECT MANAGERS.

The project managers in the Washington office were each assigned from three to six projects. It was their duty to see that drawings and specifications were rapidly prepared and that the work of the project architect, engineer, town planner and contractor were properly coordinated. They studied plans and specifications to see that nothing was omitted and that there was no overlapping or extravagance. The project manager instructed the works superintendent as soon as he was chosen in the general policies and working methods of the Housing Corporation and provided him with detailed information concerning the specific project to which he was assigned. He explained to him the methods of Government construction and the method of procuring labor and materials. The contractor was meanwhile instructed to prepare his requisition for materials and schedule. of labor needs, which were checked by the project manager and turned over to the materials procurement branch and the Industrial Relations Division. It was the project manager's duty further to see that materials were ordered in time, that the orders complied with the contract requirements and that the work in the field was properly carried out.

THE WORKS SUPERINTENDENTS.

The works superintendent was the principal executive of the Housing Corporation in the field and was responsible to the corporation for the successful execution of work on the project to which he was assigned. He interpreted contracts and determined methods of procedure in accordance with instructions from Washington; he certified bills and payrolls after approval of the auditor. He engaged inspectors and such other assistants as were necessary, and was responsible for seeing that monies were wisely expended and that work on the project was properly coordinated and accomplished.

THE TRAVELING SUPERVISORS.

A small group of traveling supervisors kept the executive staff at Washington informed of the progress of the project and adjusted differences between the works superintendent and the contractor.

PROCUREMENT AND SUPERVISION OF LABOR.

As the Housing Corporation did not secure funds. for construction until July 25, 1918, it came late into a labor market, already almost exhausted by the colossal demands of the war industries and of the draft. The Industrial Relations Division was established to cooperate with the United States Employ

ment Service in securing labor and to cooperate and negotiate with Federal departments, war industries, and private contractors in the handling of all questions of labor supply, wages, hours of labor, and other conditions of employment. It was also to make such provision as should be necessary for the living quarters, health, and recreation of the employees of the corporation and of its contractors. By October 26, 1918, the requirements of this division as laid before the United States Employment Service numbered 12,356. By November 1, projects were on the average about 50 per cent manned. It was exceedingly difficult to secure labor and to retain it after it had been secured, due to the competition of other Government departments. (These difficulties are described in the report of the Industrial Relations Division, p. 222.)

In spite of these difficulties the Housing Corporation attempted to maintain a 10-hour work day and six work days per week with no Sunday work, realizing that there would not be an increase in relative efficiency if the amount of overtime was increased. This rule was very generally followed except during particular emergencies. Much time was also spent in adjusting disputes between employees and the contractors. Such disputes covered the employment and discharge of non-union men, conformity or nonconformity with union rules and practices, wages and hours of labor, and virtually all of the usual subjects of dispute between workmen and their employers.

DEVICES TO SPEED PRODUCTION AND REDUCE COSTS.

To provide for maximum speed and minimum cost an accurate continuous record of cost and progress of work was essential. A cost engineering branch was, therefore, established in the Construction Division to watch all expenditures and orders and classify them by communities and compare these with estimated cost to make sure that the contractor was living up to his contract.

Every two weeks the cost engineer prepared a graphic report, summarizing all accounts and all quan. tities of materials and labor purchased and delivered to the project. These reports showed the quantity of work done and to be done, subdivided according to a standardized mode of classification. These expenditures were compared with the official budget and with the works superintendent's latest revision of that budget. By means of this device excessive. costs were immediately noted and brought to the attention of the contractor and pressure was brought to bear to reduce costs. Charts were also drawn up to show progress of the work with reference to the time requirements specified in the contract. The progress report was itemized for each portion of the

work and was submitted as well for the project as a whole. The work of this branch was a means of saving large sums of money in construction costs to the Federal Government, and it was also effective as a means of coordinating field operations and preventing delays in the fulfillment of contracts. (See Appendix XII, p. 207.)

FISCAL RECORD.

The Housing Corporation comprised a Treasury Division, responsible for cash receipts and for prompt payment of audited vouchers and preparation of schedules of disbursements, and a Fiscal Division, responsible for audit of all payments and other records for the control of all transactions and for accounting. Each of these divisions maintained field representatives, the field auditors of the Fiscal Division being charged with the control of financial transactions at projects, subject to the rules of procedure of the Washington office. Traveling auditors were appointed to supervise the work of field auditors of several projects. Each field auditor familiarized himself in detail with the contract and maintained a continuous audit of transactions under that contract, including pay-roll record and the bills of the contractor and vendors.

Disbursing officers for each project cooperated with the field auditor to insure prompt payment of the obligations to the corporation. Each disbursing officer was responsible for seeing that approved vouchers presented to him were promptly paid and that contractors operating under fixed-fee contracts were reimbursed for their weekly pay-roll after the same had been audited and approved by the field auditor. Daily reports were submitted from the project disbursing office showing the balance of cash on hand, the receipt of funds, the amount disbursed, and the balance to the credit of that office, together with an itemized schedule of sums paid on approved vouchers. An accountant in the Washington office checked the schedule of disbursements. (See Appendices XVIII and XIX.)

SUMMARY OF CONSTRUCTION OPERATIONS.

The first construction contract was awarded on July 8, 1918. By November 11, 1918, 60 general construction contracts had been awarded on as many different projects and 23 more were ready to be let. With the signing of the armistice, on November 11, 54 projects were abandoned, 15 were curtailed, and 22 were to proceed as originally planned. In no case did the Housing Corporation proceed with construction unless it was judged that there would be more salvage to the Government from completion of the project and sale of the houses than would accrue from

the sale of materials already ordered on construction already begun. Three of the contracts which were ordered completed were for remodeling dormitories, apartment houses, and hotels purchased by the corporation. Three other projects for the construction of temporary houses at remote powder plants at Seven Pines, Va., Tullytown, Pa., and Woodbury, N. J., were transferred to the War Department, as it was realized that these properties would bring a larger return to the Federal Treasury if sold in conjunction with the industrial plants for which they were built. One project at Pompton Lakes was reduced to 15 semiportable houses, which were completed but not occupied, as they were no longer needed by Ordnance inspectors for whom they were built. Two projects, one for Washington Navy Yard houses and apartments, the other for Bethlehem, Pa., were subsequently canceled. Effort was made to push construction to speedy completion, and on December 21, 1918, there were 19,369 men on the contractors' pay rolls, the maximum force employed at any time.

The original program had contemplated the construction of houses for 24,970 families, or approximately 125,000 persons. Under the revised program of April, 1919, houses were to be built for 6,148 families, or approximately 30,800 persons. The original program had also contemplated the provision of quarters for 12,865 single men and 11,132 single women, either in dormitories, hotels, or as boarders in family houses. Under the revised program quarters were to be provided for 4,932 single men and 3,375 single women, of whom 4,338 men and 3,073 women were to be housed in dormitory buildings, 244 men in existing hotels on which alterations were made, 130 women as boarders in family houses, 172 women in buildings convertible into houses, and the remainder of the men in family houses.

For details of original program see Vol. II, Table 1, pp. 390-393. For details of actual construction containing later revisions, see Vol. I, Appendix XII, p. 200.

THE PROBLEM.

American history offers no precedent for extensive building of private dwellings by the Federal Government. Although there are residential properties owned by the Federal Government in its parks and reservations, at its navy yards and arsenals, no complete communities have been constructed prior to the war for the use of the industrial population.

In many European countries governmental departments have constructed houses for rent or sale to industrial workers or to the general population. With very few exceptions such construction has been by municipal or provincial governments rather than by the national authorities. Where the central government has engaged in housing it has generally been either in an advisory capacity or through loans to municipalities or other agencies under restrictions governing the type and quality of house to be constructed and the terms of rent or sale. Such a policy provides the advantages of local management of and responsibility for the housing operation and the advantages of promotion, supervision, direction, and financial assistance from a highly competent group of specialists with a permanent national office.

For reasons given in an earlier chapter (see p. 23) and because primarily of the nature of the war emergency this more usual mode of governmental construction was not tried in America. The problem instead of being attacked by municipal and State governments was handled directly by the Federal Government, and although centralized control was indispensable as a part of the war program, it necessarily involved management problems of peculiar difficulty.

The primary obligation of the Housing Corporation in the management of its properties, in view of the fact that these properties were not ready for operation until after the signing of the armistice, was unquestionably to salvage as much as possible of the war expenditure, so far as that could be consistent with the welfare of the tenants. There was probably

another essential obligation arising out of the fact that these housing developments are in a sense "model communities."

It is not claimed that the houses built by this corporation are ideal in form or arrangement. To some extent beauty and convenience were sacrificed to speed and economy (criticism of these houses will be found in detail in Chapters V and VIII of Vol. II of this report), but the developments were model communities in the sense that they are being studied and will inevitably be copied by the architects and builders of the future, especially by housing corporations established by manufacturers and by groups of public-spirited citizens. Since these communities will be under close observation it is particularly important that the Federal Government should be a model landlord, and a model not of lavishness or of sentimental welfare work, but of equity in its civic relations and of good sound business policy.

SHOULD HOUSES BE SOLD OR RENTED?

The basic problem of operation was to determine whether houses should be rented or sold. Throughout the early months of 1919 scores of houses were being completed each week and it was necessary to come to a decision in this matter which could be applied to each of the various types of houses and each of the diverse districts in which the dwellings had been constructed by the United States Housing Corporation. Although houses were being completed ready for occupancy, the estates were unfinished because roads could not be built or lawns graded until after the spring thaw. If the houses were to be put on sale before the estate was completed they would bring a lower price. Another reason for postponing sale and applying a rental poliev universally was that the labor conditions of the country during the early months of 1919 were unsettled, and the movement of prices was uncertain.

It seemed highly undesirable to sell properties until their reproduction cost under peace conditions