Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-05-28
LITTLE THAT is NEW
Captain Simpsons Testimony Before the
House Naval Committee.
Large Profits From Government Con-
tracts Owing to Their Being Based
on the Old Rates.

Capt. Sampson, chief OF the ordnance
bureau. Navy Department. resumed his
statement today before the House commit
tee investigating armor plate frauds. He
took up the second charges made against
the Carnegie Company. which have been
in part investigated by the Navy Depart
ment Capt. Sampson detailed the charges
made by Mr.. Wallace, a Pittsburg lawyer
representing a half dozen employees of the
Carnegie works. Secretary Herbert had
designated board with Capt Sampson at
the head They had gone to Homestead and
had found the charges and the evidence
substantially similar to that at the first
investigation. The final report OF the board
was not yet completed. but in substance
II would disclose little that was new.
Mr. Sill, one of the informers at the first
investigation, had the most comprehensive
knowledge of defects. None of the wit
nesses at the second hearing had material
information to add to that already given
by Sill.
The only thing in the bill of additional in
formation was given by Mr.. Kountz and
Mr. Buck. The latter testified to 4 practice
in the works of so fixing specimens as TO
give the government a false record of the
tests. He testified that the falsifcations
continued until January / last. Another
employe testified that the practice had al
the practice had continued until orders
were given to discontinue il.
The Alleged Practices.
In response to a question by Representa-
tive Money, Capt Sampson said Mr.. Frick
had given the order. Mr.. Frick had heard
that informers were taking notes. and
while it was not known that Mr.. Frick
knew of the irregularities. he had written
a letter. In September. directing that such
practices, IL they existed, should cease.
This order was In turn executed by Superin-
tendent -Schwab, who knew of the practices.
Capt Sampson told of the investigation OF
these practices, which had led him to the
conclusion that while the charges had been
made in good faith, they had not shown
intentional fraud In manipulating the sam
pies The testimony had brought out moth
ing new TO the defects in hlow-holes.
etc. it was not yet determined whether the
second investigation had brought out suf-
ficient to yield a reward to the informers.
In explaining the manner of taking SAM
pies Capt. Sampson said that employe
of the Carnegie works took the samples and
subjected them to machine tests. The Car
negie employe called off the results and the
government inspector took the figures as
called off.
IN other words" said Chairman Cum
mings, the government tests were made
by Carnegie employees. with a Carnegie ma
chine, and were accepted as conclusive by
the government"
Capt. Sampson said this was customary
the world over. In the intricate processes
some reliance had to be placed on the COM
pany employees. The testing machine had
dial on which the government inspector
might see that the checking of was COR
rect.
known Armor Defects.
AS to alleged defects in the armor of the
Monterey, -the. witness said the blow hole
WAS in. the .siAeeaK1soy.sAa to an enormous
blow hole in another plate. which had been
traced. Capt Sampson said he could not
locate it exactly. He thought it was on the
Columbia or New York. The defect was not
serious. and the department had known
about IL before ii went on the ship. The
thirteen-inch armor Of the Monterey had
numerous blow holes. with the knowledge
OF the department. The plates were hur-
riedly made in 1Sa2, and would not be ac-
cepted now. The Monterey plates were the
first made. The Chilean trouble was pend
ing, and the department was desirous of
hurrying forward the work.
Chairman Cummings asked as TO a
statement of Representative Coombs (NYD
that the first government contract had paid
the Carnegie Company for the cost OF their
plant. and yet new contracts were being
made at the old rate, thus paying the Car
negies several times for their plant Capt.
Sampson said he thought il was to some ex-
tent true that the more recent contracts
were based on the earlier contracts when
the cost of the plant was considered in
making the price for armor.
In reply to questions Capt Sampson said
that from the circumstances Of the case
IL was impossible that Mr.. Schwab. the
superintendent. should not have known of
the Irregularities. The witness said that
Mr.. Schwab's position with the company
had been changed, and he understood that
he would be removed. Capt. Sampson con-
cluded his testimony.