New-York tribune., 1918-12-21
Shipyard Head
Says U. S. Should
Praise Results

Although gratitied that the govern
ment's inquiry into the Hog Island
project failed to disclose any profiteer-
ing, officials of the American Interna
tional Corporation, who conducted the
yard said yesterday the intimations
that the job was done extravagantly
were unfounded.
Charles A. Stone, president of the
American international Corporation, in
presenting his side of the case, quoted
letter written to him on December 13
by Charles N. Schwab. director general
Of the Emergency Fleet Corporation,
commencing him for his achievements
in the undertaking. and said:
'It would not have been surprising
il, in an enterprise of this megnitude
with an organization so hastily assem-
bled and with the work progressing at
such speed, Irregularities had occurred.
1t is highly gratifying, therefore, that
no graft, profiteering or financial mis-
conduct Of any kind whatsoever has
been found. This is distinctly a credit
to the men who have been responsible
for the organization and the actual
prosecution of the work.
Charges Not Detailed
"The report intimatcs that the job
was done eXtravagantly. 1t points out
no single expenditure that was waste
full, but it states, as an Inference mere
ly, that there was extravaganza. This
inference apparently is based on two
facts:
1. That the cost so largely ex-
ceeded the original estimate.
2. That the cost per way was larger
than that Of the Merchant and Sub
marine Boat yards.
"As to the latter, the fact is that
the figures show that the cost per way
at Hog Island, on a fair basis of COM
parison. is not substantially in excess
Of the cost per way at the other yards.
In fact, it is less than at one of the
yards mentioned. | am Informed that
Mr.. Piez, the general manager of the
Fleet Corporation, has made computa-
tions which demonstrate this.
THE original estimate was neces-
sarily inadequate. We had no stand
ards or precedents to guide US in such
a gigantic undertaking.
after the original estimate was
made the scope of the yard was in
creased at least 90 per cent. Further
more, as the work progressed, the cost
more than doubled, both in labor and
materials. These two facts fully eX-
plain the difference between the origi-
raj estimate and the final cost.
Question of Conditions
"Whethcr emergency war costs are
excessive or not is a question of opin-
ion upon which perfectly honest mer
differ, and on this question as applied
to Hog Island our own officials, who
are experts of the highest standing
and reputation, differ from the con
clusions Of the men employed in thC
investigation, who, to say the least
, had never had experience in a job Of
such marnitude as this.
"On this question of cost | under
stand that the officials of the Flee
Corporation agree with our officials
:, "At the continued hearings befor'
, the Senate Commerce Committee
which are to proceed directly aftel
New Years, all the facts can b,
brought out 1t will then be shown
am sure, that while the yard wa
: necessarily costly as a war measure
yet there was nothing in the cos
which was not necessary or justified
by the situation.
: "Eurthermore, l am equally certain
| that it will appear that this grea
undertaking, instead OF being on
: deserving criticism, is really one O
} the greatest engineering feats Of tn
age-a monument 10 American eff
cheney and an achievement of which
\ all those engaged on she work and tn,
! entire nation may rightly be proud"