New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1918-02-14
PRESIDENT ORDERS PR Obj
HOG ISLAND YARD SCANDAL
Directs Attorney General to
Sift Rumors Concerning
Criminal Use of Govern
ment Funds in Shipbuild-
ing Plant.

Washington, " Feb. 14.-President
Wilson today directed Attorney Gen
eral Gregory to investigate the much
discussed Hog Island shiDyard con-
tracts, which have been adversely
criticized before the senate commerce
committee and determine if there has
been any criminal use of government
funds.
The president also directed the at
tor'loN general to work in conjunction
with Chairman Hurley Of the shipping
board in his investigation. About $f2,-
O00,000 of government money has
been Invested in the Hog Island prof.
ect in which the America Internation-
al corporation, headed by Frank A.
Nanderlip president of the National
City bank, has figured.
The Hog Island shipyard on the
Delaware river near Philadelphia IS
planned to be the greatest in the
country with more than 80 ways in
which to lay down ships.
The American international Cor
pOratiCn, through its subsidiary cor
pOratiOn. the American international
SnipbuildiNg Co., has contracts for its
construction and for ShiDbUldi1g there
from the emergency fleet corporation
acting for the United States Shipping
board.
One Of the principal points of at
tack on the International Shiphuiiding
Corporation in the committees inVrs-
tigation has been because of its con-
tract Witli the Emergency Fleet Cor
poration in which it would receive Il
fee of $6.000 600 for the "know how"
Of building the yard and getting out
the ships.
Mr.. Nandcrlip's name was brought
into the investigation as being prtej-
dent of the mother corporation ana as
having countcrsigned the contracts:
1t has developed among other
things at tho senate committees hear
ing that Col. Black of Philadelphia,
one of the former owners of Hog ISL
and, got $4,000 an acre for his prop
erty whereas year ago he held an
option Of Hog Island at $1,000 per
acre.
Investigations by the department of
justice was recommended by Chair
man Hurley of the shipping board,
who asked that an assistant be sent
to Hog Island to work with Assistant
General Manager Bowles of the
Emergency Fleet Corporation. Mr..
Bowlcs was put in active charge Of
the ward recently He has been dl-
rected by Mr.. Hurley to put the Hog
Island yard on an economic basis.
Shipping board officials are Of
the opinion there has been nothing
worse at Hos Island than inefficient
management and reckless spending Of
funds, but they want to ascertain all
the facts.
Although the shipping board has no
facts to indicate there has been GRIM
ina1 dereliction, it wants to ascertain
the true situation and learn just how
money put up by the government has
been spent.
Testimony before the senate COM
mittee investigating shipping has
shown that construction of the yard
will cost the government from $40
600, 900 to $5O,O00,0O0 though original
estimates placed it's cost at s21,OOO,-
900. The work is being done by a
subsidiary of the American Interna-
tional Corporation.
Members of the senate committee
have Indicated they may recommend
that the government take over con
struction OF the yard and do the work
jtca1f