New-York tribune., 1918-02-13
Baldwin Defends
Expense of Yard
At Hog Island

WASHINGTON, Feb. 12.-Heavv e.
penditures of government money in the
construction of the Hog Island ship
yard, near Philadelphia, were defended
before the Senate investigating com
mittee to-day by George ]. Baldwin
chairman of the board Of the American
international Shipbuildng Corpora
ton, on the ground that the corpora
ton was confronted either with delay
ing ship construction or paying high
costs in building the plant.
Mr.. Baldwin said the corporations
needed ships and the plant expected
to turn out fifty-two Of them before
the end of this year. He added that
all of the 120 ships contracted for
would be launched on time unless there
should be delay incident to transporta-
tion or other difficulties. One keel was
laid to-day. he said, and fifty will be
put down in February and March.
During a three hour cross-examna-
the corporation first asked for profit
Of per cent on the cost of the 100
ships to be built. but that Major Gen
eral Goethals, then general manager Of
the Emergency Fleet Corporation, re-
fused to pay it and profit of 3.3 per
cent finally was agreed to. 1t also de-
veloped that the contracts for build
ing the plants provided that the gov
crnment either must purchase the Hog
Island land from the owners after the
war or continue to pay rental of per
cent on $1,706,000, the purchase price.
Estimates Are Increased
1t had been tentatively estimated
that the cost of constructing the yard
would be approximately $21,000,000, but
estimates from the Emergency Fleet
Corporation show that that figure will
be very greatly increased. Mr.. Baldwin
questioned those estimates, but said
construction of the yards as war
emergency necessarily was more ex-
pensive than it would be in peace times.
The witness admitted that none of
the board of directors of the corpora
tion was shipbuilder or had actual
shipbuilding experience. Under re-
reated questioning as to expenditures
sisted that no government money was
being spent without warrant.
1--WE are not doing this for money"
he said. II have boy over there lin
France), and do youp think would de-
lay this work for one minute on ac-
count of money!"
eff you are not doing it for money. |
then why have you from $4,000, 900 to |
S7000,000 coming from the govern
ment?" asked Senator Johnson, Of Cali
fcrnia.
Because you can't keep corporation
alive on patriotism" he replied.
Senator Johnson asked for the names
of the principal stockholders in the |
American International Corporation or
its subsidiaries. The witness could |
not name any other than Frank A.
Vanderlip, of the National City Bank,
of New York, and Stone e. Webster, of
Boston, but said he would give the
names at some future time.
Mr.. Baldwin corroborated previous
testimony that fee of per cent was
paid to sub-contractors, although there
is specific provision in the contract
with the International concern that
there shall be no fees paid to the prin-
cipal contractor. He also corroborated
statements previously made that Stone
4 Webster receive a fee amounting to
double the salary of it's experts where
advice was given on engineering uues-
tions.
Mr.. Baldwin declared he belieeyd the
statements of Chairman Hurley and
Vice Chairman Piez regarding mis-
of the Hog Island plant
were exaggerated