The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-08-24
Report and recommendations of the
House Naval Affairs Committee on
the Recent Investigation.
OFFICIALS SEVERELY SCORED
Charges of the Informers Alleged
to Have Been Sustained.
Frauds Committed Worthy to Be Called
Crimes-lnspected Plates on Sew
eral War Ships to Be Tested.

WASHINGTON, Aug. S-Representa-
House committee on naval affairs, present.
ed to the House to-day the preliminary re-
port upon the investigation OF the armor
plate and billets furnished to the govern
ment by the Carnegie Steel Company. In
vestigation has been in progress for weeks.
and during its course testimony has been
given by the principal officials OF
the Carnegie company, by workmen
and by government officials The report
is remarkably complete and minute re-
view of the case. The committee finds
that charges of fraud have been sustained,
scores the company severely and recon-
mends. as has been stated in these dis
patches, that ffty-nine suspected plates in
use should be tested as the only method
of proving their fitness or unfitness II
also finds that the government inspection
was negligent, but no charge Of dishonesty
rests upon the inspectors.
The charges against the company were
that plates and bolts did not receive the
treatment required by the contract; that
the false reports were made TO the gov
ernment inspectors; that specimens for
testing were retreated before being sub
mitted; that the testing machine was fraud
a
was made in the case Of plate designed
for a ballistic test, and that the govern
ment stamp was either duplicated or stolen
and used without knowledge OF the gov
ernment inspectors. The report states that
the number of furnaces used was totally
inadequate to fulfill the specifica tions OF
the contract on the amount of armor plate
turned out. After the first investigation OF
the alleged frauds the number of furnaces
was increased from four to ten.
In regard 10 the 'jOckeying'' OF the
testing machines, ii is asserted that the
company made private tests OF material.
and, If it was below the standard, manipu-
lated the machine at the official test so
that it would show the required tensile
strength. The charges of retreating and
substituting plate designed Tor balfstic
tests. the committee is satisfied, are true.
and government stamp IS not sustained.
The report says the government inspection
was negligent and detective, but this is at
trtbuted TO the fact that there were not
nearly enough inspectors to do the work.
1T is asserted tnat the fraud has been
traced home to the general superintendent,
who is a stockholder IN the Carnegie COM
pany.
Chairman Cummings, says: '"fhe frauds
which your col. InlLtee nave found are
worthy to be called crimes The servants
OF the Carnegie company, whether with or
without the knowledge OF the company,
to increase their gains. deliberately con-
unued Tor many months 10 commit acts
whose natural probable consequences VIII
be terrific loss of men in times of war.
and perhaps the dearest interests OF the
Nation. No fine or mere money compensa-
tion is an adequate atonement for such
wrongs Your committee does not consider
it within its province 10 draft criminal
statute, but il does feel under obligation
to call the attention of the House 10 the
Importance Of protecting the lives OF our
seamen and the safety Of the Nation by
appropriate legislation, den0unclng as
crimes all such acts as the frauds and de-
ceptions practiced upon the government in
connection with armor plate and other
severely punishable of all persons who COM
nit, or aid, or abet them"
committee says: notwithstanding all the
admissions made by the superintendent
employed by the Carnegie company. they
government are up TO the specifications OF
the contracts. The contract of Feb Is,
ISsS states a5 that the obligati9n is Is imposed
tor that everything has been done in strict
accordance with the terms of the contract.
1t has been conclusively shown that the
inspectors have been satisfied and the
armor plates passed by the most notorious
frauds. The efforts of the company and all
| its superintendents-Cline,C Cory and Schwab
have been 10 satisfy your committee that
armor is up to the requirements of the
contract, Notwithstanding false reports to
| inspectors, d0ctOring of specimens, plugging
| of plates, fraudulent re-treating OF test
plates and 'jockeying' of the testing ma
chine. The unbluShing character or the
| frauds to which these men have been par
| ties and the disregard of truth and honesty
| which they have shown in testifying.
! before your committee render them un-
| bears against their contention. 1t is not to
| be supposed that such manifold frauds were
continued for so long time without an i'm
portant object to be gained As the indi-
vidual plates and the groups or plates
| passed in many cases by fraud, the fair
| conclusion is that without the frauds they
would not have passed.
1.-Two questions remain, however-hrst,
whether, Notwithstanding the frauds and
| the failure to attain the high standard re-
| quired by the contracts. the armor is not
good steel and fair armor; second, the ex-
tent to which the government has been
| damaged by the frauds and irregularities
ton under which your committee Is acting
| requires 1t to ascertain the amount or dam
| ages. 1t is impossible however, for IL TO
do this with its present powers. The only
| way to determine the actual condition and
| strength OF the armor is by subjecting GER
| tain plates of the groups passed To bal
| lStic tests. Your committee has no more
| work to do. For the information OF the
| House in relation 10 further continuing
| this investigation by making such ballistic
| tests your committee has ascertained the
| whereabouts of fifty-nine representative
| plates, alleged TO have been falsely
The plates recommended for testing are
| four on the Monterey, eight on the Monad-
mock, ten on the New York, four on the
| Amphritrite three on the Terror, three on
| the Oregon, three on the Olympia (four-inch
| casements), seven on the Indiana, four on
| the Massachusetts, and one on the oregon.
/ OF the four-inch sponsons, there ere three
4 on the New York, two on the Columbia.
| three on the Minneapolis, three the
| Olympia two on the Cincinnati and two on
| the Raleigh
| The report concludes: The committee
| can go no further into this investigation
| without knowing the actual ballistic re-
| sistance OF groups OF plates passed by a
| test OF plates that did not really represent
| these groups. The company has admitted
| this charge. If the government Is precluded
| from making these tests at their expense
| by the settlement made Jan. IS. 1894. they
| must be made at the expense OF the gov
| ernment Believing that a test OF these
| plates should be made, your committee has
| selected the plates which in its opinion
| ought to be tested. Ii recommends that
| the money for such a test be taken from
| any moneys heretofore appropriate for ths
| increase OF the navy under the head OF
| arrnor and armament