Evening star., 1918-02-10
TE[LS0F RECKLESS
SPENDING At YARDS
Governments Ship Money
Wasted at Hog Island, Mr..
ToWIe Testifies.
FAvoRITIsM is CHARGED

A story Of reckless extravaganza and
failure OF accomplishment at the Hog
Island shipyard near Philadelphia was
told to the Senate commerce committee
yesterday by John w. Towle. He Is the
plant engineer Of the Emergency Fleet
Corporation. whose duties are to in
spect the work done at the yard. where
the government plans to build 120 to
200 merchant ships.
Following Mr.. Towle on the stand.
Francis H. Bohlen of Philadelphia, in
structor in law at the University of
Pennsylvania, told the committee he
sold 400 acres of, the Hog Island land
to the American International Corpora
ton. from which the government con-
tracted for the yard and ships. He got
$4,000 an acre for this land. He said
the land was finally sold to the corpor-
alton after an option held by New
York concern at $1,000 an acre had ex-
pired.
The committee will resume its hear
president of the American Federation
OF Labor. will testify concerning labor
at the various shipyards.
Frequently Complained, he Says
Mr.. Towle testified that he had again
and again complained of lack of plan
and of inefficiency and extravaganza
at the yard to the officials of the Inter-
national Corporation, which is doing
the work for the government. and for
which the government Is paying. He
said he had complained without result.
though in one instance at least his ad-
vice had been followed. but too late to
be Of service.
He explained that when he first went
to the site, in September, he pointed
out that the main thing was to build
railroad facilities to handle the vast
quantity of supplies which had TO pc
shipped to the island. He said he had
recommended the construction OF
yard on the island for the unloading of
tho freight.
But the officials of the corporation would
not listen to him, he testified. The
freight cars began to pile up by the
hundred till there were more than a
thousand at Hog Island which could
not be unloaded. Then the railroads
put an embargo on shipments to the
island. and the weather became SO bad
that more cars could not be sent along
any way, and the corporation was able
to catch up. unloading the hundreds of
cars near Philadelphia and Hog Island.
The corporation finally adopted his
idea of yard on the island, but 1t was
then too late, he said
Because Of the failure OF the company
to handle the material, he said, thou
sands of laborers had been idling on
the island through part of the day. with
the result that from 80 to 40 per cent of
the wages paid to labor was dead loss
to the government. The government is
paying all wages.
Favoritism is Charged.
Mr.. Towle was asked if any contracts
were given through favoritism or po-
litical influence; He hesitated to
not under his particular line of OBJ
servation. He finally admitted that he
knew of some. He pointed out that a
subcontract for s1.6o0.0oo was awarded
ton Concern. q. Hp' MoibpooR RGl,tns Is SHs, sfee
president Of the American Interna-
tional Corporation. and the rental of
from the Boston company
amounted to s26O,o00 and the fee to
$4,000.
Mr.. Towle told also of a contract
with Stone & Webster, also of Boston,
and closely connected with the Inter-
national corporation. to furnish experts
OF all kinds for the work at 100 per
cent in advance of their regular sal
aries from that company
He told the committee that wages
paid Tor labor amounted to some three
times as much as they would for SINH
lar work in normal times
Says Money Was Spent Recklessly.
He said that when the corporation had
to get lumber and get it quickly from
Philadelphia lumber dealers they nut
the price SIS thousand above the mar
ket. and the government had to pay the
bill.
The expenditure of money has been
reckless in the extreme" he said. "and
have thought so for some time"
i can't understand how such things
could be allowed to go on" interjected
Senator Calder of New York
Mr.. TOwle said that they had hoap oo,,,
peeled to pay $4,000 to $4,000 for ordj-
nary cranes which normally would have
cost only $1,000 to $4,000.
Everybody who had anything to sell
put the price up and the government had
to pay for it." he said