The daily banner., 1918-02-15
WILSON ORDERS
HOG ISLAND
Directs Attorney General to
Hunt For Fraud.
MAY EXAMINE THE BOOKS
The President Says Serious Facts
Have Developed in the Ship Yard
Contracts.

Contracts.
Washington. Feb. 10. President
Wilson directed Attorney General
Gregory to investicate he American
nternational corpora i2n's construc-
tion of the gover2m n fabricating
steel shipyard at Hog Island. and de-
termine if there hiss been any crimi-
nal misuse of government funds.
The inquiry was orde ed at the re-
quest of the Shipping board, which
charges gross mism"n cement and
reckless spending o. g0-"rnment mon
ey at the big plan 81 the Delaware
river near Philadelphia
President Wilson's letter was made
public. The letter follows:
Mr.. Hurley, Of he $ tipping board.
has called by attention to some very
serious facts which have recently
been developed with regard to con-
tracts made IN connection with the
shipbuilding program with the COM
pany operating at Tnr Tc!and. They
are so serious, indoei that I do not
think that we can let them be taken
care of by pubic disclosure and dis
cussion. 7 would be very much Cblig-
ed if YOU would have some trTSt-
worthy person in your de-artment get
into consultation with NJ Hurley
about the whole matter with view
of instituting criminal process in case
the facts justify it."
The attorney generals department
is directed to work in conjunction
with Edward N. Hurley. chairman OF
the shipping board. which, while 1t
has no facts to indicate that there
has been criminal dereliction, vents
to ascertain the true situation. and
learn just how money put up by the
government has been spent.
Assistant Attorney General O'Brv.
an will be sent to Hog Island to take
charge Of the investigation. co-operat-
ing with Rear Admiral Francis A.
Bowfes, assistant general manager Of
the Emergency Fleet corporation.
1t is reported that several special
agents will be sent to Philadelphia,
also. to examine the books of the
American International corporation
and its subsidiary. the American In
ternational Shipbuildng corporation.
which is doing the work at Hog Is
land.
1t is proposed that the senate COM
merce committee, which has been
hearing Testimony on the Hog Island
charges, go to the shipbuilding plant
for an inspection Saturday Senator
rlo 60 J,;n ho kryo 4to&
day. Other senator's while endorsing
the plan, believe more than day
would be required.
Though the president gave the or
der for the investigation it is said in
Washington that an inquiry has been
under Eax several weeks cpeFst.%es- rss-
Of both the department of justice and
the secret service have been at Hog
Island, it is asserted.
Testimony before the commerce
committee has shown that the con-
struction of the Hog Island yard will
cost the government from $40 600, 900
to s50,000.000, although original esti-
mates placed its cost at $21 100000.
Admiral Bowies has been directed
to recommend any changes in man
agement he thinks necessary, but has
been ordered to await the senate COM
rittee's report before taking any d-As-
tie steps Already he has reduced the
staff Of the management to some ex-
tent, and has outlined other changes
he thinks should be made.
Members of the senate committee
have indicated that they may recon-
mend that the government take over
the construction of the yard and do
the work itself.
Testimony before the committee de-,
veloped charges by Represe
Lenroot, Republican. of Wisconsin, on,
the floor of the house, that through
laxity in the letting of the contrac.--
the American International and its
subsidiary were placed in a position
to loot the United States treasury of
mirions of dollars.
Charges, however that the Interna-
tional is "gouging" the government,
have been charact erized as "malici-
ously false" by George J. Baldwin, of
New York. vice president of the
American International Shipbuilding
corpcration in his testimony before
the senate committee.
It has developed among other things
that at the senate committees hear
ing, that Lieutenant Colonel Charles
NJ. Black, Of Philadelphia, one of the
former owners Of Hog Island. got
$4,000 an acre for his property, where
as a year ago he held an option on
Hog Island at $1,000 an acre