The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-03-27
oARNEeIE's ARMoR PLATES.
Herbert's Story of His Deal About the
OefectiVa Ones.

OeIGctlVe ones.
Washington, March %. - Secretary
Herbert to-day sent to Speaker Crisp a
| full statement Of the discoveries which
led 10 the imposition of a fine on the Car
! negle Steel Company for imperfect arnors
furnished for use on the naval vessels
unoer contract. The letter was accom-
panied oy large number of docu-
ments. The secretary says: Some time
IN september last l received information
from an attorney of Pittsburg. Pa. who
represented certain persons then in the
employ OF the Carnegie Steel Company.
limited, that these employees had in their
! possession information which would be
/ valuable to the government: relating to
frauds then being perpetrated as 1t
was alleged, by certain of the
| employees of this company, and
/ that they would give this in
a sufficient consideration The attorney
sent letter of introduction to me show
| Ing that he was a reputable lawyer in
/ formed him that I had no money at my
/ command, with which to pay Tor informa-
! ton, but that if the Information should
lead to the recovery of moneys from the
| Carnegie Company, | thought could re
numerate the lnformants from the sum so
| recovered, but l would not agree to pay
any expenses whatever, or in anyway
! except in this manner.
THE PROPOSITION ACCEPTED.
This proposition was satisfactory. and
| theFeupCn three of these employees and
| the attorney representing them. James
h. Smith, of Pittsburg. Pa. talked with
, me freely A careful examination of their
! statements convinced me that the in
formation they offered to furnish was not
I without foundation. | could not discover
any feeling of hostility on their part
| towards the Carnegie Company. They
had not been engaged in the strike, the
| motive influencing them seemed 10 he A
desire to realize money for the informa-
! ton they We're to furnish, and as they
| were to receive nothing whatever unless
| their statements upon Investigation
/ should prove to be true and should war
rant recovery from the company, [ at
once determined to make thorough in
! vestlgatlon. A letter was thereupOn writ
! ten to the attorney general of date of
| nth day OF November 1893, asking
whether the department had authority
! TO make such contingent contract with
| the informants as has been indicated.
| The attorney general replied on the 27th
| day of November, 1893, giving the opinion
that the department might make such a
| contract.
AGREED ON % PER CENT.
''The informants, although they asked
more. finally consented to take % per
cent of such sum as might be recovered.
and thereupon the departments wrote a
letter to the attorney general. of date the
Dec. l, 1893, asking would such
| sum, under the circumstances,
be reasonable, and received his
reply, dated the 4th day of December.
stating that it would. Upon the receipt
OF this letter the department made, with
these employees and the attorney afore-
said, a contract, by which it was agreed
| to give them % per cent. of the amount
! recovered, if any.
The secretary instituted an investiga-
| ton that established the correctness Of
] the information furnished by the Pitts
! burg men and implicated three of Carne-
| gie's superintendents named Schwab,
| Corey and Cline in crooked dealings
! with the government, and in degeiVing
the government inspectors.
These investigations did not discover
that Carnegie, Prick, or Hunsicker, the
4 three chief men of the steel company. had
any kno Wedge of or agency in the decep-
tions that were being practiced.
THE DAMAGES ASSESSED.
Damages were assessed upon the com
pany to the amount of Is per cent. upon
| the payments already made for armor de-
livered and all premiums paid by the gov
eminent. The Carnegies' appealed to the
President and he sustained the depart
ment, reducing the assessment, however,
to 10 per cent. This amounted to $40, 4S1,
which was paid, and $50, l21 went to the
infOrmers."
The secretary says he is satisfied that
the irregularities have ceased that they
| affected only small portion of the armOr
plates delivered, and these not to de.
gree that brought them below the limit
of tolerance, and that they did not affect
any of the heavy armOr plates. Nothing
developed in the investigation that in any
manner implicated any officer of the navy
in cOnnivance.