Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1918-02-14
President Asks
ShipyardProbe
Ouer Graft Talk

Washington, Feb. IA. President
Wilson today directed Attorney Cen
eral Gregory to investigate the much
discussed Hog Island shipyard con-
tracts which have been adversely crit
icized before the senate commerce
committee, and determine II there has
been any criminal misuse OF govern
ment funds. The president also di-'
rected the attorney general to work
in conjunction with Chairman Hur-
ley of the shipping board in his inves-
tigation. About $42.000,000 Of gov
eminent money has been involved in
the Hog Island project in which the
American International corporation,
headed by Frank A. Vanderlip, presi
dent Of the National City bank, has
figured. +E&i
The Hog Island ship yard on the
Delaware river, near Philadelphia is
planned to be the greatest in the coun-
try with more than fifty ways on
which to lay down ships.
The American International corpor-
alton through its subsidiary corpora
ton, the American Shipbuilding COM
pany, has contracts for its construc-
ton and for shipbuilding there from
the emergency feet corporation acting
for the United States shipping board.
! Testimony before the commerce
commission Investigating shipping
contracts has developed facts that the
government will be obliged to spend
between $4O,OO0,000 and $4,000, 00C
! where government experts expected
! $21, 900, 600 would suffice.
This testimony developed charges by
of Wisconsin, on the floor OF the house
that through laxness in the letting o.
contracts, the American internationa
and it's subsidiary were placed in pos
ition to loot the treasury Of million!
of dollars.
These charges, however, that thu
International was 'gouging" the gov
eminent, have been characterized al
"maliciously false" by George ]. Bald
win of New York, head Of the Ameri
can International Shipbuilding corpor
: alton, in his testimony before the sen
ate commerce committee.
It was developed among other thing
at the senate committees hearing tina
Colonel Black of Philadelphia &c
$4,000 an aeEs, ;for his property where
!. kas a yea sgH he held an option o
Hog island at $1,000 an acre.
One afs4I principal points Of al
t tack OF TT International Shipbuild
: ing corporation in the senate CON
mittee's investigation has been that II
l contract with the emergency fleet col
! poration it would receive fee {
! $6,0O0,00O for the know how"
: building the ship yard and getting OF
e the ships.
] Mr.. Baldwin, before the senate con
: mittee, attributed the rise in costs
the fleet corporations delay in sigl
ing contracts. The fleet corporation
he declared, while pressing for spec
y wasted two months in signing col
tract and threw the work into mil
winter which brought also great II
: creases in material. labor and ever
:. thing else.
u Charles A. Piez. vice president
s the fleet corporation, said in his te
IL timony before the committee that the
had been extravaganza in building Il
+ yards. Mr.. Baldwin, however, r
!, minded the committee that the eng
% neer who supplied the date on WIFI
l. that assertion was made, later hi
10 withdrawn most of 1t.
i There has been great deal OF pre-
F. sure in the senate committee to ha
II the government take over the sn
ie yard and continue the work itself.