The evening world. [volume] (New York, N.Y.) 1887-1931, 1894-08-23
GUILTY Of !.
ARK0R FRAUDS.
(Coniuu,d from Fus' P1oe. J

| the company acknowledges nave re
were absolutely necessary.
| The investigation shows that there
were oniy two furnaces for the treat.
up to SEPT /. 1899. After, this a third
furnace was completed and used. These
three furnaces did All the work up &c
Aug. l. 1893, when fourth vas added.
After Information OF the frauds prac-
/ tised In the works was given to the
Navy Department. and penalty ex-
acted by the decision Of the President.
other furnaces were added, until to-day
! ten are in use.
| ct viii be noted, however" adds the
report. that the contract OF Nov. ~,
$50 provided for the manufacture Of a
contrict Of FEB. IS 1895, no penalties
being sxacted for the failure to deliver
specified amounts at specified times.
" When the contract OF FEB. was
IS delivery under the FIRST contract. Its
three furnaces were entirely inadequate
to carry out the provisions OF that con.
three furnaces in which to do the work
required by all the contracts.
This, in the view Of the committee.
clearly Indicates one Of the motives Of
and arinor plate department In making
false reports OF the treatment OF the
plates and bolts to the Government in
SpeCtUrs.
at. is clearly evident to the Commit
tee tina. there were not enough furnaces
to turn out the work reported. IL the
plates were treated according to the
spcctfcatic ms OF the, contract and In &C
cordance with the directions OF the Gov
eminent Inspectors"
The fourth. fifth and sixth paragraphs
gardins the "jockeyins Of the testing
machine. MIR. Cummings says:
THE reason for the manipulation is
shown In the evidence. The Company
itGnl In, 1.-t. .atn tARNa
plates. and knew beforehand as Supt
Corey testified VIVA, the actual tensile
strength Of each plate was.
r,, IN II was below 'S the minimum the ma
bring IT within the minimum was made
II is IN evidence that the required
manipulation was indicated to the man
record sent from Corey's Office with the
order to pull the specimen"
The seventh and eighth charges are
Ordinance Board, although not acknoNI-
edged by Supt. Corey, and 1t is added:
There is no doubt IN the minds Of the
Committee that the secret retreatment
sistance Of the plates with the express
purpose OF passing inferior groups and
OF securing premiums thereon, as the
,niyps haI been nominated for pre-
rs rejestn so%pfH ~ TONS %s" ID a saray
valued at over $4,000 in making ex.
reriments. unless they were positive it
The, ninth charge is said to be ad-
mitted. while the tenth and eleventh are
not considered as sustained.
Reglrdine the government inspection
the report says: The evidence discloses
the fact that the Government inspection
was negligent and defective. None of
the INSPECTORS was. however charged
ee endns y 4ow t that e any any N t sy
were corrupt MIR Trick, Chairman OF
the Board Of Managers, in his testi-
mony said that he always relied on the
iaSt that the Government had inspec-
The inspectors were thus relying upon
the company. and the Chairman OF the
Company upon the inspectors Neither
party, however, had any right to RELY
upon the other
The Company cannot shelter itself
behind the government inspectors.
home to It's General superintendent.
himself a stakeholder In the Company.
or the feature Of criminality involved.
Of the wrongful act is to be, measured
by the deliberation with which 1t is
committed, the magnitude of the evils
likely to result from its perpetratlon
II Is done. the frauds which your Com
mittee have found are worthy to be
called crimes.
The servants of the Carnegie Steel
knowledge OF the Company).to Increase
their gains, deliberately continued for
many months to commit acts whose
natural and probable consequence would
men in time OF war, ana with them per-
ton.
The company was hired to make the
best posibls arnnr plate. and paid an
enormous price for so doing. They were
hired TO make an armor that would
stand the shots Of an enemy and upon
which the nation might rely in time of
need. They were paid between $500 and
800 a ton. and thousands of dollars a
plate. Resting under these obligations,
the company, or Its servants, have per-
petrated manifold frauds. the natural
tendency of which was to palm Off upon
tho Government an inferior armor whose
lnteriority miEht perchance. appear
calculable damage to the country.
mo fine or mere money compensation
is an adequate atore.:ent for such
wrongs. The commission Of such frauds
is moral crime OF the gravest char
acter. Your Committee do not consider
1t as within their province to draft a
criminal statute; but they do feel under
obligation to cnll the attention OF the
House to the Importance OF protecting
In the future the interests of the Treas
ury, the lives OF our seamen, and the
safety OF the nat!on by appropriate leg
is'ation, denouncing as crimes all such
acts of fraud and deception practiced
upon the Government in connection
with armor plate and other material OF
war, and making such acts severely
punishable in all persons who commit
them or aid and abet their commission -
w. A. stone asked whether the report
did not PREJUDICE the Carnegie Company,
to which Mr., Cummings replied that II
did not The resolution. the adoption OF
which he asked, had been unanimously
reported
Hr Henderson CRep., Iowa. bore ties.
tmony TO this latter statement and said
that one OF the Republican members had
informed him that they desired il
adopted.
Accompanying the report was a Joint
resolution TO authorize a..G direct
move from the Monsdnock. the Mon.
diana. and Massachusetts,. and the
cruiser Monterey certain specified artnor
plates, and subject them to the balljytir
test at the Indian Head proving ground
.rhe resolution also directed a report
on these tests.
Mr.. Stone called attention TO the fact
that no member OF the minority was
present and he wanted to reserve the
right OF the minority to file a minority
report
Mr.. Cummings objected strenuous,y.
he declared that there was no minority
The Subcommittee and the Committee
on Naval Affairs had been unanimous
and he would not give to Mr. Stone the
privilege OF trying to scare up minor
lily:
did the minority sign that report?"
asked Mr.. Stone.