Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1918-02-15
j. s. WAR CONTRACT
ORDERED PROBED BY
PRESIDENT WILSON
Hog Island Operations, in
Which Frank A, VanderIip'S
Company Figured Will Be
Investigated

WASHINGTON, Feb 14.-President
Wilson today directed Attorney General
Gregory to investigate the much-dis-
cussed Hog Island shipyard contracts
which have been adversely criticised be-
fore the senate commerce committee, and
determine if there has been any criminal
misuse of government funds.
The president also directed the attor-
ney general to work in conjunction with
Chairman Hurley of the shipping board,
in his investigation. About 100000 900
of government money has been involved
in the Hog Island project, in which the
American Information Corporation,
headed by Frank A. Vanderlip, president
of the National CitX bank of New York,
has figured
The Hogs 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 CORPORA
zion, through Its subsidiary corporation
the American International Ship Build.
ing company, has contracts tor its con-
structlOn and for ship building there,
from the Emergency Fleet corporation,
acting for the United States shipping
board.
Testimony before the senate commerce
committee, investigating the whole sub
ject of shipping contracts, has developed
statements that the government will
be obliged to spend between $4,000, OOU
and $5U,000,OOO, where government and
civilian experts estimated $21,OO0,OO
would SuTtice.
This testimony developed charges by
Representative Lenroot, Republican, of
Wisconsin, on the floor OF the house,
that through laXness in the letting OF
the contracts the american Interna-
tional and its subsidiary were placed in
position to loot the treasury OF millions
OF dollars
These charges, however, that the In
ternational was "gouging' the govern
ment have been characterized as ma
liciously false" by George j. Baldwin.
of New York, head of the American In
ternational Ship building corporation
in his testimony before the senate COM
merce committee.
1t was developed among other things
at the senate committees hearing that
Colonel Black, of Philadelphia, one OF
the former owners Of Hog island, got
81, 900 an acre for his property, whereas
a year ago he held an option on Hog
island at $1,000 an acre.
One OF the principal points of attack
on the International Ship Building cor
poration in the senate committees in
vestigatiCn has been that by it's contract
with the Emergency Fleet corporation
it would receive fee of $6,00O.0O0 for
the know how" of building the ship
yard and getting out the ships.
IT,. I,
into the investigation as being presi-
dent of the mother corporation and as
having countersigned the contracts
Mr. Baldwin, Before the senate COM |
mittee, attributed the rise in costs 10
the fleet corporations delay in signing
contracts The fleet corporation, he de-
clared, while pressing for speed, wasted
two monthes in/sisning a contract and
threw the work into midwinter, when
brought also great increases in material, /
labor and everything else.
Charles y. Piez, vice president of the
fleet corporation, said in his testimony
before the committee that there had
been extrava gance in building the yard. |
Mr. Baldwin, however, reminded the
committee that the engineer who sup /
piled the data on which that assertion
was MADE later had withdrawn most
of it.
sure in the senate committee to have
the government take over the ship yard
and continue the work itself.
Investigation by the department of
Justice was recommended by Chairman
Hurley, of the shipping board. who /
asked that an assistant to the attorney |
general be sent to Hog Island to work |
with Assistant General Manager Bowles, |
of the Emergency Fleet corpora ton. Mr.. |
Bowles was put in active charge of the |
yard recently.
Mr.. Bowles has been directed by |
Chairman Hurley to put the Hog Island |
yard on an economic basis. Shipping |
board officials are of the opinion that |
there has been nothing worse than in
efficient management and a reckless
spending of funds but they want to
ascertain all the facts.
Rear Admiral Bowles who assumed |
active charge of the new plant a few
days ago, dispensed with an expensive
publicity bureau, but declared he was
confident all expenditures ordered by
the corporation would be indicated by
the extent of the work necessary.
PHILADELPHIA, Feb. 14-Officials
of the American International Shipbuild-
ing corporation declared today they
would welcome the investigation which
President Wilson directed into the ship
yard of the company under construction
at Hog Island.
A portion of the keel of the first 100
ships contracted for at the yard was
laid this week.
A A. Ho