Every evening, Wilmington daily commercial., 1918-12-20
NO CRIMINAL GUILT
FOUND AT HOG ISLAND
Continual from psee )


"In response to the question submitted
by the President, our conclusion Is that
the facts do not justify criminal process,
that no fraud or secret profits on the
part of the officials Of either the agent
or the fleet corporation has been estab-
lishcd. that while there were some MINOR
frauds on the payroll, which have been
prosecuted, the laborers, laboTers tinc-
keepers and payroll supervisors were IN
the main honest.
EXPLANATION CALLED FOR.
Stating conclusions AZ to alleged
waste and mismanagement, the report
proceeds
Waving al minor questions Of con
troversy, the outstanding fact II that
the agents summer and fall estimates
of S2l 900 900 and its November Z7
estimate of S27, 100000 have been 50
far exceeded that the probable cost
of the ward will be about 26l 600 000,
Including s6,OO0000 for recent addi-
tions made by order of the Fleet Corpo-
ration Such a discrepancy must be
due to some fundamental miscalcula-
tion in the original estimate, To super
vening condition. including enlargement
of the plant to rnIsmanageruent In opera
tion. or to 4 combination If these factors.
4 discrepancv 0f such magnitude would
seem to call for clear explanation from
the agent. but this has not been furnished
Considerable effort has been made
bv the agent in the hearings to stultIfv
its own estimates by claiming hat they
we're mere gu sses that nobody could
relv upon. But the Fleet Corporation
did rely on them; and there IS no con
temporaneous evidence iustifying the
the agents present position
40 RECORD Of MATERIAL.
The most significant single tact
indicating the point Of view I'll Hog
Island was that bills for material. largely
lumber were prepaid, anu properly
prepaid) 10 the extent Of over $4,000
600, but no effort was made BY the agent
until our invest Igation to prove whether
prepaid bills were IN fact followed by
actual receipt Of the material paid for.
Another fact Of strong significance Is
that while the contract provided IN
express terms that the agent should keep
a detailed plant cost account ana con-
tanned very careful provisions defining
cost. vet the agent AZ an early date took
the position that since the government
paid for everything that went into Hog
Island il Ras unnecessary 10 comply
LKIS prov ISAu4l, AACtft1t ~ ~ -t2c-U "a
the work since last December could it
be determined what any unit OF plant
construction cost.
COST OF SLIPS COMPARED.
4 report Of the aysl technical advisers
included in the report says 50 far as the
data before them shows, The general
scope of the Hog Island plant has not
been changed very materially since the
November estimate OF cost, and that
the difference between So 10000 and
$50. .0O0. 900 cannot be accounted Tor by
expansion Subsequent 10 November p
The total cost Of about Sl,l00.000
per slip al Hog Island IS compared with
5000, 900 for the similar yard ri Bristol
and S390,000 at Newark Bay
\ bill IN equity for an accounting by
the agent might be brought, the report
says. but the main question being the
reasonableneeS of the expenditures, .
board Of exp rts would be more >uita-
able tribunal, we think, than q court or
a court and a jury