Norwich bulletin., 1918-02-15
Probe Building of Hog gIslandSIlip Plant
INVESTIGATION ORDERED BY
 PRESIDENT WILSON
RECKLESS EXPENDITURE
Chairman Hurley of the Shipping
 Board Rebukes President of Ship
 Carpenters For Allowing Men to ] Strike.

Washington, Feb. 14.-Investigation by the department of justice of the i American International Corporations construction of the governments big fabricating steel ship yard at Hog Island, Pa, was ordered today by President Wilson with a view to criminal prosecutions if the facts de- velop more than reckless expenditure or government money
 Hurley Theatens Cancellation.
 At the same. time Chairman Hurley of the shipping board. who had re- quested the move indicated that the corporations contracts for building the yard and ships involving many millions of dollars, might be cancell- ed, which was taken to mean that the government might take over the yard, complete it's construction and build the ships iself. This step has been urged by members of the senate com mittee Investigating shipbuilding.
 The president asked for the investi- gation in a letter to Attorney General Gregory.
 Charges of Encouragement.
 Charges of mismanagement and a. reckless spending of the governments funds at Hog Island have been made freely before the senate committee. Witnesses have testified that the yard, for which the shipping board is put ting up all the money, may cost twice the sum of $21 100000 carried in the original estimates. The slow progress made in construction of the yard and reports of loose management prompt ed Chairman Hurley three weeks ago to put in full charge of the work Former Rear Admiral F. A. Bowles, assistant general manager of the Emergency Fleet Corporation, who is new on the ground.
 MT Hurley's threat to cancel the corporations contracts was contain ed in a letter to Admiral Bowles di- recting him to uncover any irregular sties and notifying him that Attorney General Gregory had been requested to designate a special assistant to help him. Admiral Bowles was di- rected to effect a more economical management, but was asked to await , the senate committees report before , announcing any programme of action sMr. Hurley's letter follows:
 MT. Hurley.s Letter. zf- Prom newspaper, reports, as. well 1 as from indications that have come l! from YOU, it is quite clear that there is a condition of disorganization as . well as of negligence at Hog Island {; "13y taking, hold of conditions with !, a strong hand I am convinced that you /! will be able to bring about more care 1 full and economical management Ii there have been irregularities of any | kind punishment must be meted out l tO <ffo A-4. | the attorney general to assign one o1 his assistants to aid you in this in vestigation.
 '"Ffe whole question of the manage. ment of affairs at Hog Island is now before the senate and felt that, vol | would want to know that in mJ opinion we should await the judg- rhent of the committee before commit. ting ourselves to any programme O action. X Of course, we may find i necessary to cancel the present con. tract entirely.
 'Tf in this connection you have any suggestions to offer will be very glat to have them"
 To Make Profit of $6.oo0,ooo.
 The Hog Island contract was tn I largest of three fabricating stee
 
 Fleet Corporation. for which the gov ernment was to furnish all the money The corporation is acting in effect a en agent of the government and in tn words of Admiral Bowles before tn senate committee Is furnishing
 "know howl It stands to make Il profit of s6,00o,000 on the yard an
 pn the ships it is to build. Members of Corporation. l The American International Corpor ation is composed of some of the coun try's most powerful financiers, includ ) ing Frank A. Vanderlip, Percy 4 } Rockefeller, J. Ogden Armour, Rober
 Dollar, Robert s. Lovitt, William F 7 Corry, John D. Ryan, Theodore N , Vail, Otto 1T. Kahn, Pierre s. Dupon } James Stillman, Beeldnan Winthro } and Charles A. Stone.
 The American International Ship building Corporation a subsidiary C the American International Corpora ton, is actually building the yard an will build the ships although the gov
 ernment's contracts were made wit
 the American International Corpora
 ton. The senate committees inquir ) developed that some work has bee
 sublet to outside contractors. George J. Baldwin, cha1rman or tn
 American International Corporation
 denied before this week that expen f dftures had been excessive in view ( the governments demand for speed. f The senate committee has gon deeply into the Hog Island projec l Testimony has disclosed that construo 1 | ton. is four months behind, an : Homer L. Ferguson. president of tn i, Newport News Shipbuilding and Dry
 dock Company, a. witness, declare , l that the plant would do wen to tur : out any ships in 1913" although tn f programme called for the first launch . ings in the early fall.
 HURLEY APPEALS TO
 Il PRESIDENT OF CARPENTER