The Oklahoma City times. [volume] (Oklahoma City, Okla.) 1908-1984, 1918-12-20

A. y
.ompaied with an original estlnnaeo
II SlOn0OOO and a revised estimate
II 27OO0ooO
That no clear explanation of this
discrepancy ha, been forthcoming.
That prior TO February last. {
condition existed at Hog Island which
,uperiicially, at least, would impress
anyone as an organized riot,'
tangled mass. or state OF chaos.
Cost Minor Item. Claim.
THAT the contractor or agent, the
American International corporatlco
in substance has taken the position
that since this was a war Job cost was
OF minor Importance, and
That the question Of reasonable
ness of the expenditures should bs
referred to board OF arbitration
provided for in the contract, proceed.
ings to be closed il the board finds
the expenditures reasonably neces-
sary, or otherwise payment OF the
excess 10 he demanded by the govern
ment'
Finished In 50 Day.. =
General Manager Pier of thu
Emergency Fleet corporation, ap.
pearing Yesterday before the senate
commerce committee. testified that
the Hog Island yard would be com.
plcted in about sixty days; that the
cost would he about NJ,3mOW ana
that the plant had delivered but one
ship and lad fifty keel'
Built on Cost Plus Basis.
The contracting companys com.
pen,ation for building both the yard
and the ships was fixed at percents
age OF the estimated COS, Of the shipA
with premiums for early deliveries %
savings in cost and penalties for de<
layed deliveries or increased cost
The maximum fee under this arrsngos
ment would be Sll,4400O0 and tho
minimum S9l0OOO. Mr.. Pier testis
fed Yesterday that to date the CONS
pany had been paid nothing.
Although the contract was mad
with the American International coma
pany. the report says there was an uas
written obligation publicly ADMITTED
by all parties TO consider the engis
necfing firm Of Stone Il Webster end
the New York Shipbullding corposas
ton as Jointly interested in the benee
fits and burdens A separate corpora
ton. the American international Ship
building corporation, was organized %
the agency through which the yard
and ships actually were to be built.
10000 Men Employed.
In a section regarding the statut
Of the yard, the report says that ID
less than a year after the date Of the
contract $40 acres OF marsh land withs
out railroad facilities will become 3
complete industrial city OF $1,000 men,
served by two trunk lines Of railriad
- and equipped to deliver TO the
government two completed 900 ton
steel cargo vessels each week"
Speaking OF difficulties encountered,
a blockade OF cars loaded with mi.
tcrial extending from philsdelphia Ia
Norfolk, Va" is described.
The report tells in detail the vast
work involved in the investigation and
the questioning OF everybody from
high officials to taxi drivers and ol
the examination OF thousands OF books,
bills, diaries and other papers. I1
recites at length the charges made
against the contractors and answers
on which the Investigators do not a..
temp, to pass judgment
No Crime IL Charged.
This is the conclusion as TO criminal
liability:
"In response TO the question snb.
m,ted hy the president, our conclus
sion is that the facts do not Justify
criminal process that no fund or -.
cret profits on the part Of officisle
OF either the agent or the fleet c0ss
pota,ion has been established; Lac
while there were some minor frauds -
the payroll which have been proses
cuted, the laborers, laborers' tisses
keepers and payroll supervisors were
in the main honestl n
One Of the accountants employee
hy\out chief aocoun,au, criticised tho
la,,ef's We,hod as inadequate. Thsso
cri,icisms were submitted TO two ieals
ing firms OF certified accountants NJ
reported In writing that the crItielQ
were unfounded and that the nso0
and scope oi the accounting. ~