Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1894-03-26
CARNEGIE FRAUDS.
4 Gigantic Attempt 10 SSildlo The
Government.
OFFICIAL REPORT or THE HOUSE.
What II Cost the Administration 10
Uuoarth the ylllainy aud how
Compounded.

wAsutSutoN, March 20. - Naval
Secretary Herbert made a detailed re-
ply to the resolution passed by the
House calling for the details Of the te-
cent alleged violation by Carnegie,
Phipp; a %. Of the atmor plate con.
tracts. IL disclosss Que OF tho most
gigantic frauds known % our naval
administration. The secretary says
that last September hu received from
40 attorney representing certain en-
ployes " Carnegie, phipps q Co., nu
offer for consideration 10 reveal the
facts as 20 extensive frauds being prlc.
tlcrd In the manufacture of afmDf
mates Tor the naval vessels in the works
NJ Homestead. 10 was nnally agreed
10 pay them 70 per cent N all
damages recovered by the government
o. consequence OF their revelations.
The men came to Washington aud
submittcd 20 the secretary large
msia OF evidence, which they hai
been gathering long time, 10 show
that the plates were not properly or
evenly tempered aud that, after the
naval inspectors bad selected one plate
from each group 10 be tested ~ a repre-
tentative VI the entire group, these test
plates we've taken at night and caro-.
iully nnnealed, and oil blow holes were
plugged, 20 NJ 20 give them much
hianvf quality than the rest OF the
ll,tcs furnished. IL was further shown
from original SLIPS that the records Of
the times Of heating anu manner Of
handling ~ furnished by the wOrsmon,
10 be- reported 10 tho government, had
iUUn tnmpUted with. Tnis was done
under the direction Dt Suuuriutcnduuts
E'hwab, Corey aud Cline. Captain
sampson, chief Of the bureau Of ur1in.
auCH, was then called Ia anu put In
Possession Of tho facts and, With skilled
constants, made ID thorough invcstiga.
ton demonstrating the truth % tue
revelations, aud assessing the damages
At 10 ger cont on the amount ~ armor
deliver d. Then the chief officers VI
the company, Ffick and Huusickor,
wefs called In and informed " the
facts, the Informant having said
hat they had no evidence that
they knew anything about the matter
ANU the secretary was convinced they
ND not. They seemed greatly aston.
i'hrd but thanked thu secretary Tor the
iaifncrH with which the investigation
uad Teen made. ffick also eaid that
hu had been Informed that irfeguiafitics
we're byiug pracllcud and haI written
a letter " Schwab In charge Of heating
hul temnrfing, cauiiUniug him 10
extra vigilance IN the fulhlinent Of the
contract, which letter he turned over
TO tho teofetafy, Hcfbun Informed
them he had decided 10 approve the
recommendation that thu company be
Ne 'Vtsed 10 Per contdAmages. AT a later
date Flick asked II the Hucretary's
decision was subject 10 appeal 10 tho
PteBldeni. Bong iuiOfmuu that u via,
they went before the President aud
presented their case. The President,
alter long anu careful consi Iteration,
rendered his decision g. the effect that
the executive officers OF the company
did not appear 10 DO involved In the
frauds, auu having In fact put "a stop 10
thVm II their own motion NJ soon
W. made aware n them, he was
willing that the damages be- assessed
NJ ten per cent on all armor delivered
Within the time shown within which
frauds tEisicui that wns tom Noyrm.
Der Srd, 1892, 10 September 10, 1893.
The amount manufactured during that
time was .,6i7,9i7 tons, valued at $40
iJi, $50. Ten yer cent n this slI,Ois.
.ho President therefore decided
should be- forfeited 10 tho govern.
mvnt. This decision was accepted
by the company VINO paid at the
PIitsbufg bauk 10 thu credit OF
the iuiotmahts s35, l2l, and credited
vouchers for plates furnished tho gov
eminent 10 the amount u slO5, 800.
The secretary adds that though the
plates on which damages were assessed
were not up 10 the limit Of tho very
test work possible, they were neveTtht-
less fully i've per cent above the limit
" tolerance, aud believed 20 be- better
than those furnished tue ships OF
other countrlot. This was because
VI tho extremely high standard
" excellence demanded by the spvoin.
cations, which were 90 high, In fact,
that the company was compelled %
discard at least one-lhitd OF the plates
made. Moreover, Il was fortunate
that tho company at the time was on.
gagged ON light armor, anu not on that
Tor battle ships. The secretary was
also pleased 10 state that no naval
Ulcers were suspected OF any iffcgu.
larIIles In tho matter. Furthermore,
Superintendent 5chwah had been 10,
moved II another department Oiwork,
hui tho Annoaliug was Put IN the
hhudb VI Hunsirker anu arrangements
made 10 have government Inspectors
on duty night And day.