The Washington times., 1918-02-10

their participation IN the Work, II
was at their own convenience, with
their participation, patriotic or
otherwise, making no real difference
now, as the work is done and paid
for by the Government. The par
ticipation of three men. represent
ing the Know How, and the use Of
100000 at 6 per cent for two
years, was all the witness knew Of
advantage to the Government from
the system on which he was being
examined.
He had been at Hog Island since
last September, when the first brush
cutting began on the site Of the
Know How ship building plant which
was put over" on the Government.
He described as part marsh, which
would be SUBJECT to inundation at
dyked out. Beside three hundred
acres Of lowland there were about
three hundred acres Of raised and
higher land on which the work Of
constructing and operating the great
Hog Island plant, wholly at the ex-
pense Of the Government, had been
begun by the efficiency experts.
When they had put over this site on
the Government they had it connect
ed with the outside by a single line
track, which had been lately built
from Eddystone by the Pennsylvania
railroad. And on this track the
Know How magnates, the efficiency
experts, the supermen who demanded
control Of the wheels OF Government,
permitting them-to go round only
under their system. and on their
terms, congested hundreds Of car
loads Of freight, parts Of engines,
steam shovels, piles, supplies and
everything imaginable" All the
neighboring trackage was filled with
Government freight on which
charges were made for "demurrage"
until in one way or another, about
5000 carloads of freight had been
held up or delayed in this way. And
It was impossible to get In through
the congestion"
At the same time. In November and
December, men we're kept on the pay
roll idle, the witness said, at an extra
expense OF 30 to 40 per cent in labor
cost, added to the enormous, routine
charges which this system demanded
from the treasury for its operation
Questions asked the witness and
Commander P. L. Reed, of the navy
related to the ramifcations of the
system, from the top to 'lower
down." with the same general prin-
ciples operating. For example; one
line Of questions related to three
publicity experts" who are sup
posedly Journalists" with the
Know How to get themselves i'm
posed on the Treasury payrolls at
from $500 to $685. a month, which
in comparison with some other sal
aries, might make them astonished
at their own moderation. It seems
that part of their function was to
teach labor patriotism and instil
in its mind the principles of opti-
mistic philosophy. They published
several numbers Of an alleged news
paper for that purpose.
It was during the last week in
December, 1917, that Admiral
Bowles gave before the committee,
the first chapter in this astonishing
history. He said that the American
International Shipbuilding Com
pany, with offices in New York, was
organized to carry on this work at
Hog Island, on the Delaware river,
eight or nine miles below Philadel-
phia. 1t had undertaken to build
fifty cargo vessels and seventy fif-
teen-knot troop ships and cargo YES
sells, the company to receive a fee
of $4,000 per cargo vessel, and
SS2, 900 per troop vessel. or five per
cent of estimated cost in each case,
with one-third Of savings below es-
timated cost and possible bonuses.
Estimated cost on cargo vessels
was 100000 each and on troop
vessels, 81, $780, 900 each, or from 1854
to S206 per dead-weight ton.
The contract, the largest on the
list, aggregated Sl65, 100000, with
Jhe amount eApeCltu Dy Jne COH-
tractors S6,OO0,000 or thereabouts-
the Government paying all expenses,
including the remarkable salaries of
the Know How experts with which
the payrolls are still loaded
1t was in this connection, after
testimony that the Government was
required to bear all expense, with no
risk whatever 10 the efficiency ex-
perts-who have their record as
shipbuilders yet to make as per
specifications-that Senator johnson
asked what the experts were giving
the Government in return.
The admiral said the company
supplied the Know How"
Senator Johnson: Supplies the
Know How? ! think that Is q good
answer. That is all it does"
The admiral used the same phrase
after returning to the stand, and in
putting on record the cost Of the
Know How to the Government, gave
full details. These must be left for
the future of honest and sober judg-
ment on what such efficiency costs
systematically in human life and
money, when It is in position to i'm
pose its own terms for both.