The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-03-27
ARMoR PLATE FRAUDS:
Fuu Information of the Gigantic
Steal.


Washington, March 26.-Naval Sec
rotary Herbert made a detailed reply
to the resolution passed by the House
callsqg for the details of the recent
aneged violation by Carnegie, Phipps
&/Co., of the armor plate contracts.
1t discloses one of the most gigantic
frauds known to our naval administra-
ton.
The secretary says that last Sep
TENDER he received from an attorney
representing certain employees of Car
negie, Phipps & Co, an offer for
consideration to reveal the facts as to
extensive frauds being practiced in
the manufacture Of armor plates for
the naval vessels in the works at
Homestead.
1t was finally agreed to pay them %
per cent of all damages recovered by
the government as a, consequence of
their revelations. The men came to
Washington and submitted to the sec
rotary a large mass of evidence, which
they had been gathering a long time,
to show that the plates y ere OF pro-
perly or evenly tempered and that,
after the naval inspectors had selected
one plate from each group to be tested
as representative of the entire group,
these test plates were taken at night
hand carefully annealed, and all blow
holes were plugged, so as to give
them much higher quality that the
rest Of the plates furnished.
Astounding Revelations.
1t was further shown from original
slips that the records of the times of
heating and manner of handling as
furnished by the workmen. to be re-
ported to the government, had been
tempered with. This was done under
the direction of superintendent
Schwab, Corey and Cline.
Captain Sampson, chief Of the bu-
re2u of ordinance, was 5hen called in
and put in possession of the facts and
with skilled assistants, made thor
ough investigation demonstrating the
truth of the revelations, and assessing
the damages at 10 per cent on the
amount of armor delivered.
Then the chief officers of The COM
pany, Prick and Hunsici1ar, were
called in and informed Of the facts,
the informants having said that they
had no evidence that they knew any-
thing about the matter and the secre-
tary was convinced they did got They
seemed greatly astonished but thanked
3he secretary for the fairness with
(Which the investigation had been made
trick also said that he had been in
formed that Irregularities were being
practiced and had written a letter TO
Schwab in charge of the heating and
temperlng. cautioning him to extra
vigilance IN the fulfilment of Tho con-
tract, which letter he turned over TO
the secretary. Herbert Informed Them
ne had decided to approve the recon-
mendation that the company be as
sessed 10 per cent damages.
Nice Little Haul.
AT a later date Frick asked if the
seeretary's decision was subject to an
peal 10 the president Being informed
if was, they went before the president
and presented their case The presi-
dent, after long and careful considera-
ton. rendered his decision to The Of
1ect that the executive officers of the
company did not appear to be involved
in the frauds, and having in fact nut
= stop to them of their own motion as
soon as made aware of them, he was
willing that the damages ne aSsessed
at 10 per cent on all armor delivered
within the time shown within which
frauds existed, that was, from No
vember 3rd, 1892, to September IS, 1893
The amount manufactured Turing that
time was 2,647, 937 tons, valued at ST.
z0A-aS9. Ten per cent of his, $3.50 4S9,
thev president therefore decided should
be forfeited TO the government. This
decision was accepted by the COM
pany who paid at the PittSburg bank
to the credit Of the informants $31
and credited vouchers fer plates fur
nished the government to the amount
- Got OF Easily.
The secretary adds that though the
plates on which damages We're assessed
were not up to the limit of the very
best work possible, they were never
theless fully 5 per cent above The limit
of tolerance, and believed 10 be better
than those furnished the ships of
other countries This was because of
the extremely high standard Of excel
Pence demanded by the rpecifi cations.
4 Which We're so high, in fact. that the
sspnaeanv was compelled to discard at