Bisbee daily review. [volume] (Bisbee, Ariz.) 1901-1971, 1918-02-15
GOVERNMENT
PROBE OF HOG
ISLAND NAVY
YARD CERTAIN
President Dire c Is Attorney
General Gregory to Investi-
gate Reports of Mismanage-
ment of u. S. Funds.
By Review Leased wire)

I WASHINGTON. Feb. 14.-InVeStiga-
7 ton by the department OF justice Of
the American international Corpora
tons construction of the govern
ment's big fabricating steel shipyard
al Hog Island. Pa. was ordered today
I by President Wilson with a view to
criminal prosecution if the facts devel-
op more than reckless expenditure OF
government money.
AT the same time Chairman Hurley
of the shipping board indicated that
the corporations contracts for build
ing the yard and ships might be can
celled, which was taken TO mean tha-
the government might take over the
yard This step has been urged by
members of the senate committee in
vestigating shipbuilding-
The president asked for the inves-
tigatiOn in the following letter TO At
torney General Gregory:
Gregory Instructed
Mr.. Hurley OF the shipping board
Z has called my attention to some very
serious facts which have recently
been developed with regard 10 con-
tracts made IN connection with the
shipbuilding program with the cOmpa-
ny operating at Hog Island
They are so serious, indeed. that
+ do not think that we can let them be
/ taken care of merely by public dis
closure and discussion | would he
very much obliged if you would have
some Trustworthy person in your de-
partment get into consultation with
Mr.. Hurley about the whole matter.
with a view TO instituting criminal
process in case the facts justify il"
Mismznaeement Charged
Charges of mismanagement and of
reckless expenditure OF government
T funds at Hog Island have been freely
made 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 S21 900 600 carried in Origi-
nal estimates The slow progress
made in construction of the yard and
Z reports of loose management prompt
ed Chairman Hurley three weeks ago
to put in full charge of the work For
mer Rear Admiral F A BOwles. assist
ant general manager Of the emergency
/ fleet corporation
Mr. Hurley's threat to cancel the
corporations contracts was contained
in a letter to Admiral BOwles directing
him TO uncover any irregularities and
notifying him that Attorney General
Gregory had been requested to desig-
nate a special assistant TO assist him.
Admiral Bowles was directed 10 effect
2 more economical management, but
I was, asked TO await the senate COM
mittee's report before announcing any
program OF action.
Mr.. Hurley's letter follows:
Disorganization
From newspaper reports. as well
as from indications that have come
from YOU. il is quite clear that there
is a condition of disorganizatiOn as
well as of negligence at Hog Island
by taking hold of conditions with
a strong hand l am convinced that you
will be able to bring about more care
full and economical management. u
there have been irregularities of any
kind punishment must be meted out
TO the offenders and ! am requesting
the attorney general to assign one OF
his assistants to aid you in this inyes-
tigation.
The whole question Of the manage
Iment OF affairs at Hog Island is before
the senate and l felt that you would
want to know that in my opinion we
should await the judgment of the com
mittee before committing ourselves 10
rany program of action. OF course. We
may find il necessary to cancel the
present contract entirely.
IF in this connection you have any
suggestions to offer viii be very glad
TO have them"