The Washington herald., 1918-02-13

Profits Of Six Millions.
Under raking cross-eXaminstion ne
admitted 100000 would be cleared TO
the Contractors, said economy had
been subordinated to speed. and ac-
knowledged that his estimate OF ship
delivery was based on favorable labor.
material and transportation copdi-
tons, all Of which. he said, were
very bad'' now.
In the midst OF the cross-examina-
ton. Senator johnson asked:
Our reports are that speed would
have been greater and costs smaller
II there had been an incentive FOR
your company. How about that
'lncentive" cried Baldwin. Il have
a boy in Europe. I'm not doing this
work for the money there is in il.
Patriotism or Profit.
For a moment the shipbuiIder and
johnson faced each other defiantly
over the committee table. Then the
Californian began:
Now. let US see IL you're doing this
for patriotism or profit. your boy or
money. II you aren't doing IL for
money. why this insistence on proiit.'
You can't keep a corporation alive
on patriotism. Our stockholders must
have their dividends"
Now. who are your stockholders!
Name them"
Il can name only the big ones
Frank A. Vanderiip. Mr.. Stone ard
Mr.. Webster, of Stone & Webster;
Ogden Armour"
And they are the stockholders
who need money? They must have
their dividends TO keep them alive
There are smaller stockhold-
ers."
Name them"
Balwin protested he was un-
familiar with the list of stock
holders.
Name one" shouted johnson.
Baldwin eNpostulated that the
| commission was a small one in pro-
portion TO the Job done. He said
| that every man must see" that a
corporation must have a reason
able profit" to keep going.
Paid by Government.
SIX million" murmured Johnson
an insignificant sum. How many
| OF these men, whose patriotism you
have praised so in your statement
would work for the government
without profit?'
They could not. there is the or
| ganization to keep up"
The government keeps that up
pays salaries Of your every en-
ploye." retorted johnson. I'll tell
you why / have pursued this line
Of questioning. / have a son over
| there myself. 1t is not just 20 my
boy. nor to any boy. for anyone
to make an exorbitant profit while
he suffers"
Just a bit further on, Baldwin
protested the committee was treat
ing him like a criminal
Put me in jail!" he cried. But
wait until the ships are built I
want to build the ships"
Il have long since learned" re-
piled johnson. that IL is useless 20
I put a man in Jail. But / proposs
to exploit every instance OF wezts
in the conduct of the war"
Tilt Over Price Fixing.
Balwin. in his initial staten cat.
emphasized that his company s8s 7
| offered to build the ships at any
price the. government should name.
On this, he and the committee had
a lively tilt. The upshot was that
10 per cent had been suggested by
the company as a proper commits
sion; that Maj. Gen. Goethals had
demanded they do it for per cent
and that Rear Admiral Capps had
cut this to 4 per cent.
He admitted another agreement by
which Stone & Webster. as engineers.
permitted some Of their experts to ad-
wise on the government contracts at
double their ordinary salary. Bald
win said this was charity toward the
government. because the usual charge
was 800 per cent.
I'VE have been very careful" he
said Il ordered my superintendent
CONTINUED on PAGE THREE