The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1894-08-29
AMOUNTS TO CRIME.
Charges of Fraud Against the Car
negie Company Sustained.

WASHINGTON. Aug. 2S-Representa-
tive Amos J. Cummings, chairman Of the
house committee on naval affairs pre-
scented to the house today the preliminary
report upon the investigation Of the ar
NOR p.a,e and billets furnished 10 the
government by the. Carnegie steel COM
pany. Investigation has been in progress
for weeks. and during its course testi-
mony has been given by the principal
officials OF the Carnegie company. by
wo-kmen and by government officials.
The report Is a remarkably complete
and minute review of the case. Tha
committee finds that charges Of fraud
have been sustained. scores the COM
pany severely, and recommends. as has
been stated in these dispa tches. that
hfty-nine suspected plates in use should
be tested as the Only method OF proving
their fitness or unfitness. Ii a.so finds
that the government inspection was neg
liGent. but no charge OF dishonesty rests
upon the inspectors.
The report states that the number OF
furne ces used was totally inadequate 10
fulhll The specifications of the contract on
the amount OF armor plate turned out
After the first investigation Of the al
legged frauds the number Of furnaces was
increased from four toSen.
In regard TO the 'jockeying" OF the
testing machines, il IS asserted that the
company made private tests Of material.
and IL II was below the standard M 1ipu-
lated the machine at the official test 50
that il would show the required tensile
strength. The charges Of retreatlng and
substituting plates designed for ballisuc
tests the committee is satisfied are true.
Tie charge OF using a duplicated or
stolen government stamp is not sustained.
The report says the government inspector
was negligent and defective. but this is
attributed TO the fact that there We're not
nearly enough inspectors To d. the work.
II is asserted that the fraud has been
traced home TO the general superintend-
ent. who is a stockholder in the Carnegie
company. OF the feature Of criminalIty
involved Chairman Cummings SAYS:
''The frauds which your committee has
found are worthy 10 be called crimes.
The servants Of the Carnegie company
(whether with or without the knowledge
Of the company, 10 increase their gains,
deliberately continued for many months
to commit acts whose natural probable
consequences viii be a terrific loss Of
men in times Of war and perhaps the
dearest interest of the nation. No fine
or money compensation Is an adequa te
atOnement for such wrongs. Your COM
mittee does not consider Il within its
province to draft a criminal statute. but
IL does feel under obligation 10 call the
attention of the house To the Importance
of protecting the lives OF our seamen and
the safety of the nation by appropriate
legislation denouncng as crimes ali such
acts as the frauds and deceptions prac-
ticed upon the government in connection
with armOr plate and other material Of
war and making such acts severely pun
lshab,e."
In recommending a test of plates. the
committee saws: Notwithstanding all
Ia ad m adj nv -fr1r end
ents employed by the Carnegie company,
they claim that all the Plates paid for by
the government are up TO the specifca-
tons Of the contracts. The contract Of
Feb. 2S 1893 states that the obligation
Is imposed upon the contractors 10 satisfy
the inspector that everything has been
done in strict accordance with the terms
Of the contract Ii has been conclusively
shown that the inspectors have been sat-
isfied that the armor Plates passed by
the most notorious frauds. The efforts Of
the company ana all its superintendents.
Cline. Cory and Schwab. have been to
satisfy your committee thar the armOr Is
up TO the requirements Of the contract,
Notwithstanding false reports 70 inspect
ors. doctoring of specimens. plugging OF
plates, fraudulent retreating OF test
Plates and ''jockeying' Of the testing ma
chine. The unblushing character Of the
frauds to which these men have been
parties and the disregard of truth and
honesty which they have shown in tes-
tifying before your committee render
them unworthy of credence. And every
thing bears against their contention. IL
is not TO be supposed that such manifold
frauds were continued for so long time
without an important object 10 be gained.
As the individual plates and the groups
OF plates passed in many cases by fraud,
the fair conclusion is that without the
frauds they would not have passed.
The Report Presented.
Today in the house Mr.. Cummings.
chairman Of the committee on naval az
fairs. presented the report OF the CON-
mittee on the armor plate frauds. With
Il he presented a joint resolution 10 au-
thorize and direct the secretary OF the
navy to remove from the Mon2dnock,
the monitor Terror. the ships Oregon, In
diana and Massachusetts and the cruiser
Monterey certain specified armOr plates
and to subject them 10 the ballistic test
at the Indian Head proving ground. The
resolution also directed speedy report
on these tests.
Mr.. W. A. stone asked if the report did
not prejudice the Carnegie company. Mr..
Cummings said 1t did not The resolu-
ton he presented had been unanimously
reported.
Mr.. Stone called attention to the fact
that member OF the minority was
present. Mr.. Cummings said the report
was unanimous. The republican minor
ity did not sign the report, but author
lied him to make it, What does the
gentleman want?" asked Mr.. Cummings
angrily. Does he want the Carnegie
company to buy a report:
The gentleman wants the Carnegie
company to have fair play" returned
Mr.. stone something il has not had
The resolution was adopted without
division. and at los p. m. the house ad-
journed till tomorrow.