New-York tribune., 1918-02-10
Millions Spent Recklessly
in Building Ship Plapt,
Engineer Testi6es
Thousands of Cars
Allowed to Pile Up
Overcharges and Contract
ors' Press Agents Paid
by the Government

WASHINGTON, Feb. 9.-Millions Of
dollars of the governments money were
wasted in the construction of the Hog
island shipya,d by the American Inter
ha''onal Corporation, John w. Towle,
an Omaha civil engineer who was sent to
Hog Island to supervise the construc-
ton OF the yard by the Emergency Fleet
Corporation, told the Senate Commerce
Committee to-day.
liberal contribution to the car
shortage which helped tie up the rail
roads, he said. was the impossibility
of unloading thousands of cars which
piled up at Hog Island. That these
cars should have been allowed to pile
up was entirely due, Mr.. Towlc Said, to
lack OF forethought and preparedness
by officials of the American Interna-
tional Corporation. He had Suggested
places for storage, he said, but no of
1iclal of the corporation would listen
to him.
did the Shipping Board direct that
some remedy be applied" ?" demanded
Senator Nelson. of Minnesota, at this
point.
THAT was not the policy of the Ship
ping Board" said MIR. Towle.
What was the jolicy?" inquired Sem
ator Johnson. of California.
Interference Not Desired
"Well. the American International
Corporation took the responsibility for
ho 1lo%
turn out the ships on schedule" said
Mr.. Towle, "and the Emergency Flee:
Corporation took the position that it
should not interfere with the con-
tractors"
Mr.. Towle added. howevc-, that the
contract itself said the Emergency
Fleet Corporation should supervise the
construction Of the plant.
"The American international did as it
pleased, then ?" asked Senator Jones, Of
Washington.
eyes, more or lcss,' Mr.. Towle re-
Piled
He admitted, in response to ques-
tons from Senator Nelson. that the
Emergency Fleet Corporation had the
right to take away the contract if it
wished. He said the policy of Glands
off" had now been changed, and Adj
miral Bowles had been sent up virtu-
ally to take charge Of the construction
of the yard Mr.. Towlc said his posi-
friendly critic and that he became very
unpopular with officials of the company
CAS- a matter of fact" interposcd
Senator Johnson, call the Emergency
Fleet Corporation did to correct this
condition was to eXpostulate with tho
American international Corporation"
eyes" said Mr. Towle, addn,; that
the cost Of labor and some of si,. ma
ter;als had advanced to three times the
normal price and that the government
had been overcharged on some of it's
lumber which was needed in q hurry
end bought iron Philadelphia dcalt rs
the price paid was from $l5 20 ST..
more q thousand feet than the whole
sale prices prevailing at Tic time.
Seldom Saw Patriotic Desire
Have you seen any instances OF
patriotic desire on the part Of any one
to assist the governments" inquired
Senator Nardaman.
every, very seldom" said Towie.
There seems to have been a reckless
prodigality of government funds" sug-
gcsted Senator Vardaman.
THAT is my idea" said Mr.. Towlc.
Mr.. Towle also said the West Coast
ment for from Sc to $40 more thou
sand than the normal price. He said
they had representatives. in Washing
ton. in the Fir Bureau.
Cranes, he said, which normally cost
from $1,000 to $4,000, were sold to the
American international Corporation
and the government paid the bills
for from $4,000 to $4,000.
Everybody with anything to sell shot
up the prices" he said
He also told of the hiring of three
press agents by the company-with the
bills being paid by the government
at $4,000. $500 and $4,000 a year
respectively. He said these were re-
tanned because the newspapers were
not giving publicity "of the right kind"
to the project.
Another witness, Francis H. Bohlen,
professor of law at the University of
Pennsylvania, told of negotiations for
the sale Of the property
The committee plans to resume its
bearings Monday. when Samuel Com
Grafton OF Labor. will appear at his
request to testify concerning condi-
tions affecting union labor at the vari-
Gus shlpyards.
Chairman Hurley to-day did not take
seriously the testimony before the Sem
ate Commerce Committee alleging seri-
Gus waste in the construction of the
government yard at Hog Island. This
was brought out some time ago,
Chairman Hurley stated, and the Ship
ping Board dispatched Admiral Bowles
to Philadelphia, to take charge of the
situation.
Regarding the alleged necessity of
extensive dredging operations at the
Bristol and other yards to move YES
se!s from the ways to deep water, the
chairman of the Shipping Board stated
exaggerated. Some dredging would
have to be done at the Bristol yard and
at some of the other yards, he admit
tcd but the matter was not serious
one, he said, nor one overlooked by
the Fleet Corporation.