The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1894-03-27
FRAUDS IN ARMOR PLATE.
Details OF the Crooked Work Done
Tor the Government at
Homestead.
No Naval Officers Are Suspected
OF Any IrrsRularity In tho
Matter.
Greater Vigilance WIN Bs Exercised over
Plates Turned Out by the Carr
Bsgio Concern.

WAsHmGrox. March % Naval Secret arg
Herbert made detailed reply 10 a resol ution
passed by the house calling for details Of
the recent alleged violation. bJ CarneRis,
Phipps d Co., of their armor plate con
tracts.
10 disclosss one Of the most gigantic
frauds known to'our naval Administration.
The secretary saws that ,ast September he
received from an attorney representing Ger
tain employees Of Carnegie. Phipps 4 CO..
an offer, for a consideration. 10 reveal facts
as TO extensive frauds being prRoncsd IN
the manufsotu Q Of armor plates for naval
vessels in the works st Homestead. /, was
finally agreed TO pay them 20 Tsr cent Of
all damages recovered by the government
a. consequences Of their revelations. The
men came to Washington and submitted TO
the secretary mass of evidence which
they had been gathering for long time TO
show that tho plates we're not properly
or evenly tempered; that after the
naval inspectors had selected one plate
fFom each group TO be tested As representa-
tive OF the entire Rioup. these teat plates
we're taken at night. carefully snnesied
and all blow holes plugged, so as to give
thsm a much higher quality than the rest
OF the plates furnished.
II was further shown, from original slips.
that the records Of times of heating and
the manner OF handling. as furnished by
workmen, TO be reported 10 the govern
ment, had been tRmpersd with. This was
done under the direction Of Superintend
ents sobwab. Corey and Cline. Capt.
Simpson chief of the bureau Of ordnance.
was then called in and put in possession Of
the facts, aud with skilled assistants made
a thorough investigation. demonstr attn 2
the truth of the revelations and assessing z
the damages al l5p per cent on the amount
of armor delivered.
Then the oGief officers OF the company.
FrlcK aud Hansicksx, weTs called in aud
informed Of the facts, infOrmAnts having
said they had no evidence that they knew
uything about ths matter. and the secre-
tary was convinced they did not. They
seemed greatly Astonishsd, but thanked the
secretary for the fairness with which the
In Fsstig gation was made. Frick also said
he had been informed that irregularities
we're being prsotioei, and had written a
letter to schwab, In charge of the heating
and tempeIing. oautioninR him to extra
vigilance in the fulfillmsnt of the contract,
which lettef he turned over 10 the score
tary.
Herbert Informed them that be had de-
cidsd to approve the Recommendation that
the company be assessed 10 cent damages.
At a later date FTick asked II the secretary &
decision was subject to appeal 10
the president. Being informed II was
they went before the president aud pre-
ssnted their case. The President. afte. a
long. careful consideration. rendered de-
cision TO the effect that, the executive
officers OF the company not appearing 90 be
involved in she fraudg, and having IN fact,
put a stop 10 them of their own motion, as
soon as made aware Of them, he was willing
that damages be assessed at 10 per cent. on
4 all aTmor delivered within the time shown
/ within which frauds existed, that was, from
/ Nov. 81, 1892 TO sept Is. 1893. The amount
manufactured during that time was 2.647,
/ 937 tons, valued at Sl.404,4s9. Ten per
cent OF this is Sl49 4S9. and the president,
therefore, dscides this ahould be forfeited
/ 30 the government. This decision was &C
cepted by the company.
/ The secretary adds that though the plates
on which damages we're assessed were not
/ up to tho limit OF the very best work possi-
/ bic, thsy were nevertheless fully Eve pes
/ cent above the limit OF tolerance, and
/ believed 30 be better than those fu nished
/ the ships of other countries. Moreover, II
was fortunate the company At the time wal
engaged on light armor, not on that FOL
bAttleships.
/ The secretary is also pleased 10 state tha
no naval officers are suspected OF any IT.
/ regularity in the matter. furthermore
/ Superintendent Sohwab has been removed
20 another department of work. and th'
Aunealing put in the hands OF Hunsicker
and arranRsmsnts made to have govern
msnt inspectors on duty night and day.