New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-08-24
PRICE THREE Cents
GROSS FRAUDS REPORTED.
THE ARMOR-PLATE SCANDAL.
FINDINGS OF THE HOUSE COMMITTEE
ON NAVAL AFFAIRS


INVESTIGATION ACCOMPANIED THE REPORT
AND WAS PAssED-MoNEY coMPENsA-
TIoN DECLARED TO BE AN IN
ADEQUATE AToNEMENT
FOR SUCH WRONGS.
fBY TELEGRAPH TO TIE rRIBrxIl
Washington. Aug 23-Chairman Cummings. OF
the House Committee on Naval Affairs. to-day
submitted a preliminary report on the alleged
frauds in the manufacture % armor plate by the
Carnegie Steel Company The report was ac-
companied by joint resolution directing the
Secretary Of the Navy to cause certain suspected
plates to be detached from the Terror the Nom
terey, the Oregon and several other ships. ana
subjected to ballisic tests at the expense OF the
Government. This Is held to be necessary In
order that the Committee Naval Affairs may
be placed in possession Of all the facts and infor-
nation which 1t is required by the resolution Of
the House to obtain. The report and resolution
1t is understood were unanimously approved By
both the subcommittee and the fun Committee
on Naval Affairs and the resolution was adopted
by the House without division.
Before the vote was taken. however, Chairman
Cummings and William A. Stone. Of Pennsyl-
vania, engaged in g wordy duel, In which both
became more excited than the facts seemed to
warrant Mr. Stone appeared to be surprised
because there was no report from a minority OF
the committee although he was repeatedly In
formed by Mr. Cummings that the report sub
mitted was unanimous and his statement was
corroborated by General Henderson, OF Iowa.
who had received his Information from Mr.
Wadsworth OF New-York, who is member OF
the subcommittee and who was unavoidaoly
absent to-day.
THE, PRESIDENTS INDEFENSIBLE ACT
The preliminary report is an exhaustive re-
view of TIE testimony taken by the sub-com-
mittee and seems fairly to support most OK tne
conclusions as it clearly does the recommends
tion of the committee that number OF the
nates which are strongly supposed to be defec-
tive should be submitted to firing test In the
light OF this report and the testimony upon
which II is based the action Of President Cleve-
land in remtting large part Of the fine whicn
the Ordnance Board recommended to De imposed
upon the Carnegie Company appears 10 De Ho'e
indefensible than ever, and also more lne~pno
able. unless even greater significance ana impor-
tance than have ever before been given 70 II arc
attached to Mr.. Carregie's letter approving the
Wilson Tariff BILL which was published IN Inc
Tribune two days before President CieVeiaho
gave his decision on the appeal OF the carnegie
Company from the findings OF the Ordnance
Ro,rd md the recommendation OF the Secre-
tary OF the Navy.
WHY HE WANTED SECRECY.
Rut IN the light Of tho testimony and report
+. ,s rather easy 10 understand why the Presi-
dent was as anxious as was MI Carnegie 10 co"-
ceal the facts from the country, ana why no h'i'
~ a transaction which 4 a bona fde one. would
have redounded to the honor and credit OK =
"reform" Administration. was to be found In the
annual report OF the Secretary OF the Navy or
tho Presidents message to Congress, or IN any
official communication or admission whateVer'
until months afterward. when the first iniorma-
tion in regard to this scandal reached the coun'
try through the columns Of The Tribune' Even
then there were evasons and official half-oenlais
which as the testimony has since shown' "ioeiy
varied from the truth. II is not so diWcue Z"
see why this was President CieVeiahd He"eI
took the trouble TO examine even synopsis Oh
the testimony taken by the Board OF ordnance
He seems to have relied wholly upon the ex-parte
statements and briefs Of Carnegie and FLICK ana
their attorney. in behalf Of the Carnegie Com
panv and on such ex-parte statements anu
briefs. he remitted large portion OF the hne
which in the Judgment Of Naval officers who had
investigated the facts, ought to have been i'm
posed
Why? There is only one answer and It is not
70 bs found either in the report Of the Sampson
Board or the testimony taken by the Naval Com
mittee Of the House OF Representatives. but In
Andrew Carnegie's letter approving the Wilson
Tariff bill
FRAUDS WORTHY TO BE CALLED CRIMES
The Subcommittee on Naval Affairs, after
sitting the testimony (and 1t should be remem-
,ha yifn
tendent Frck and his subordinates Of the Car
negie Company. says
II the criminalty Of a wrongful act is to be meas
ured by the deliberation with which II Is commit.
ted the magnitude Of the evils likely to result
with with which It is done the frauds which your COM
m!tee have found are worthy 10 oe Sea saeG mnanv
whether with without the knowledge .,1 Of the the
company their som gains scs whess n"
urai and probable consequences would be the sacr;
se OF the es UeTbaps %, eur the dearest
Nation The company were hired to make the best best
possible ddnT rBRey wene sns hd to make
that would stand the shots Of an enemy en- ysd ahd
wssh ws4s pad shs SsSe Set%een So t thou
dollars pa'e the for sp %ynS Or it's
wants have perpetrated manifold frauds' pon me the
tendency OF wssn was tS pah% Whose on npory
might perchance appear only IN ahe S ontry No
ne compensatTnn Is sommssiSu nn Of
atonement for such wrongs. me ne rawsss chaS.
such frauds is moral crime Oh '"e s'"'e''
acter
None Of these considerations seems to have ap-
pealed to the mind or TO have influenced the
Judgment OF the President of the United states;
he stood ready to consent TO pecuniary compro-
mise based on party consideration and to act
unon the ex parte statements OF contractors
whose acts had been shown to be tainted Win
fraud.
That part Of the report which deals' with tne
system OF inspection and the performance OF t"e'r
duties by the inspectors Acquits them OF oisno"'
estv but at the same time sharply challenges
The .e,c,encv both Of the system and the officers
detailed to carry 1t out.
THE COMMITTEES REPORT