The evening herald. [volume] (Shenandoah, Pa.) 1891-1966, 1894-08-24
CONDENNING CARNEGIE.
Result of the Investigation by the
House Naval Committee.
CHARGES OF FRAUD SUSTAINED.

Lives OF OVr Seamen In Jeopardy.
WASHINGTON, Aug. 24-Representative
Amos J. Cummings chairman of the
house committee on naval affairs, pre-
| sented to the house yesterday the pre-
liminary report upon the investigation Of
the armor plate and bolts furnished to the
government by the Carnegie Steel com
pany. The investigation has been in
progress for weeks, and during its course
testimony has been given by the princi-
pal officials of the Carnegie company, by
workmen and by government officials.
The report is a remarkably complete and
minute review of the case
The committee finds that charges of
fraud have been sustained, scored the
company severely, and recommends that
titty-nine suspected plates In use should be
tested ss the only method of proving their
fitness or upftness. IL also finds that tho
government inspection was negligent and
defective, but that no charge of dishonesty
rest upon the inspectors.
The investigation shows that there were
only two furnaces for the treatment Of
plates and bolts at the works up to Sept
1899. After this third furnace was COM
pletsd and used. These three furnaces
did all the work mp to Aug /, 1898, when
Q fourth was added After information
Of the frauds practiced in the works was
given to the navy departments and a pen
atty axaoted by the decision of the presi-
dent other furnaces were added, until TO
day ten are in use.
1T will be noted, however, adds the re-
port, "that the contract on Nov. 20, 1890.
provided for the manufacturs of far
greater amount of armor than the con
- TNah
exacted for failure to deliver specified
amounts at specified times. When the
contract OF Feb, 2s was signed. the COM
pany was far behind in its deliveries un-
der the first contract. Its three furnaces
were entirely inadequate to carry out the
provisions of that contract; yet for five
months they had only three furnaces in
which to do the work required by all the
contracts. This, in the view of the COM
mittee, clearly indicates one of the mo-
tives of the superintendents of the press
shop and armOr plate department in max
ing false reports of the treatment of the
plates and bolts to the government in
spector
There is no doubt in the minds of the
committee that secret retreatment was
given to increase the ballistic resistance OF
the places VITA the express purpose of
passing inferior groups and of securing
premiums thereon, as the groups had been
nominated for premiums. The company
would hardly risk the rejecting of 40 tons
of armor valued at over $40 900 in max
ing experiments, unless they were positive
it was safe to do So"
OF the feature of criminality involved,
Mr.. Cummings says: IF the criminality
of a wrongful act is to be measured by the
deliberatIOn with which it is committed,
the magnitude of the evils likely to result
from its preparation and the want OF
provocation with which it is done, the
frauds which your committee have found
are worthy to be called crimes The ser
wants of the Carnegie company (whetheI
with or without the knowledge of the
company, to increase their gains deliber
ately continued for many months to com.
nit acts whose natural and probable con.
| sequences would be the sacrifice of the
| lives of our seamen in time of war, and
| with them, perhaps, the dearest interests
/ OF the nation.
| The company was hired to make the
best possible armor plate, and was pail
| an enormous price for so doing They were
| hired to make an armor that would stauC
the shots of an enemy and upon which tn,
| nation might rely in time of need. They
were paid between $500 and 500 a ton ans
thousands of dollars a plate. Resting
under these obligations the company OF
it's servants have perpetratad manifold
frauds, the natural tendency of which
was to palm off upon the government al
inferior armor, whose inferiority NIGH
perchance appear only in the shock O
battle and with incalculable damage I,
the country.
"No fine or mere money compensation
Is an adequate atonement for such wrongs
The commission of such frauds is a mora
crime of the gravest character You
committee do not consider it as within
their province to draft a criminal statute
but they do feel under obligation to cal
the attention of the house to the impol
, tance of protecting in the future the IN
, terests of the treasury, the lives Of ou
seamen and the safety of the nation b
appropriate legislation, deuouncing a
crimes all such acts Of fraud and deceI
y ton practiced upon the government /
connection with armor plate aud otht
material of war, and making such act
severely punishable in all persons VIII
commit them or aid and abet their con
mission.
"The efforts of the company aud of il
, superiutendents, Cline, Corey an
>, Schwab have been to satisfy your con
mittee that the armor is up to the r
y quirements of the contracts, notwit
a standing the false reports to inspector
h doctoring of specimens, plugging
- plates, fraudulent retreating of te
+, plates and joclIeying' of the testing N
il chimes.
"The unblushing character of ii
- frauds TO which these men have been pa
ties and the disregard of the truth al
> honesty which they have shown in tes
I, flying before your committee render the
a unworthy of credence."
Is
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