davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1918-12-21
$27, 900, 600 Set aside
Held To Be fnode0unfe

We are of the opinion that the No
vember l (1S1O estimate for the Hog
Island project ($27O00,O0o) was insult
tlclent for a plant contemplating pro-
vision for fifty building ways; that a
portion of the high cost is due to the
unfavorable weather conditions, to the
difficulties inherent in the concentra-
tion of such a large volume of work in
one location, where speed is of great
Importance, to the increased cost of
labor and to the large area of plont pro-
vlded per slip, and finally that, after
making allowance for these conditions,
the cost will be higher than we arc
able to account for by the data tnat
has been before u.s.
The report states that the probable
cost OF the yard would be about SOL
100000. including $6,O0o,0O of recent
Fleet Corporation. Since the report
was written, however, the Fleet Cor
poration has ordered S3,ooO,0O0 more OF
additions, making the final cost OF the
yard about $64OO0 900.
Officials of the American Interna-
tional Corporation, while pleased at
the exoneration the report gives them
as to their integrity, feel that the gem
eral tenor OF the report as to charges
Of waste, mismanagement and extrava-
gances does not do them full justice
or give them due credit for what they
have accomplished in the face Of al
most insuperable obstacles. They free
ly admit that their early estimates
were ridiculously low, but they con-
tend that the actual expenditures, in
view of the results, have not been ex-
cessive.
In this connection it is pointed out
that, though the investigators OF the
! Department of Justice state that they
early came to the conclusion that there
vas no justification for criminal proc
ess and so reported orally, the officials
OF the Fleet Corporation and Of the
American Information have been un-
necessarily allowed to remain, SO far
as the public was concerned, under the
cloud of suspicion of criminality for
many months after the investigators
knew that there was no foundation
Fov
New-York tribune., 1918-12-21
Bill for Accounting
Might BE Brought In

Then follows this recommendation
"A bill in equity for an accounting
might be brought. But the main ques
tion being the reasonableness Of the
expenditures, board of experts would
be a more suitable tribunal, we think,
than court or court and jury. We
refer to Article XXI of the contract,
providing that any dispute as to the
manner of doing the work, etc, shall
be referred to the general manager OF
the Fleet Corporation. and his decision
shall be final and binding, except that
after the shipyard is constructed the
agent may appeal to board OF arbi-
tration consisting Of three disinter
ested naval architects. to be selected
one by the Fleet Corporation, one by
the agent, and one by the two.
"In our Judgment, the shipyard be-
ing in the main completed, the board
of arbitration should be established
and the question should be definitely
submitted to them as to whether under
the proper Interpretation Of the con-
tract the expenditures for the plant
construction at Hog Island were rea-
sonably necessary. In making their
determination they must have in mind
rot only the proper Interpretation of
the contract. but also the fact that
the burden of proof is upon the agent
to satisfy the tribunal as to the rea-
sonable necessity for the expenditures
II. the tribunal reports that the ex-
penditures were reasonable necessary
then we would recommend closing the
proceedings except as to matters which
are now or may hereafter be in issue
between the agent and the Fleet Cor
poration; if, or the contrary, they
find that the expenditures were in ex-
cess of reasonable necessity they
should state their Judgment as to the
extent of the excess and payment
thereof should be demanded of the
ooentn -
New-York tribune., 1918-12-21
Democrats Plan
TOPass Revenue
Measure To-day
Republican Leaders i'm SEN
ate, However. Believe Bill
Will Go Over for Final
Action Until Next Monday

WASHINGTON, Dec. 2O.-Aithough
renewal to-day of general Senate de-
bate halted progress on the war reve-
nue. bill, Senator Simmons, chairman of
the Finance Committee, announced that
an effort would be made to pass the
measure before an adjournment to-
morrow, with resort to night session
{ necessary. Republican leaders, how
ever, expressed the belief that the
measure would go over until Monday.
Speaking in support of d substitute
measure of which he is author, Senator
Thomas declared the watchword for
this Congress should be "retrenchment,
frugalty and economy Adoption Of
q Federal budget system was urged by
the Senator, who said national bank
ruptcy would result unless such sys-
tenn were put into effect.
Senator Thomas opposed granting the
recommendations made by Secretary
Daniels for increased naval appropria-
tlons, declaring every dollar placed IN
battleship is a dollar wasted" Sub
marines and seaplanes, he said, had
revolutionized naval warfare. He de-
clared that had the war continued six
months longer every German warship
at Kiel would have been destroyed by
the myriad Of airplanes carrying
Americans that would have swept the
air"
Just before the Senate adjourned
Senator Mcclellan, Democrat, of Ten
nessee, announced that he would de
mand a separate vote before final pas.
sage of the bill on the postal section
tentatively accepted by the Senate late
yesterday, proposing the repeal of the
present zone system for second class
mail and substituting 1 cent pound
rate within $50 miles and II cents
New-York tribune., 1918-12-21
agent Accused Of
Having False Method

s'It is charged that the excessive eX-
penditures during the winter months
were merely one phase of the agents
general attitude toward the expenditure
of government funds; that at the very
inception of the job the agent adopted a
false standard for the work by bring
ing q large number Of Stone & Webster
men upon the Hog Island pay roll at
largely increased salaries, and that TINS
was typical Of its attitude toward
salaries at the top would naturally i'm
pede the progress of the work by Great
ing dissatisfaction as TO wages through
out the whole force of labor"
In this connection is given this foot
note:
"Our accountant reports that 81 men
who were on the Stone & Webster pay
rolls on July /, 1917, ct average
salaries of SO ,973 each, were trans
ferred to the Hog Island pay rolls in
September and October, 1917, at an
average of $5,s79 each, an increase OF
30 per cent
Then the report says:
at is further charged that the
agents attitude toward expenditures is
reflected in the method by which it
supervised the receipt and dlstributlon
of materials; that no adequate check
was made thereof and that huge
amounts of materials were scattered all
over the yard. giving an impression OF
iaxity in management which could not
fail to affect actual operations.
"It is charged that in consequence OF
this condition of disorganization gov
vernment money was spent without
using the well recognized safeguards
covering commercial operations and
without adhering to the accounting sys-
TEN provided in the contract,with the re-
suit that at no stage of the work has 1t
been possible to determine the cost of
any part or to determine whether the
sub contractors or agents superintend-
ents were keeping within their
several budgets or whether they were
making progress commensurate with
the expenditures OF whether particular
expenditures were avodable or un-
avodable.
at is charged that as a result of this
breakdown in the accounting hods
! the agent was uninformed as to what
the plant was going to cost, because as
late as March 81 one of the experts Of
Yered by the agent before the Senate
I Committee on Commerce testified thai
the expected cost of the yard was be-
tween s35 100000 and $4,000, ,OO0
whereas as of April l the engineers for
the agent finally worked out an esti-
New-York tribune., 1918-12-21
RepOrt Describes Pact
That Was Made at Outset

The report describes at The outset
the contract entered into by the Emer-
pency Fleet Corporation on September
Is, 1917, under which the American
international Corporation Of New York
agreed to purchase SAC acres of land
purpose cf the contract upon per
cent rental basis, to build on this tract
with funds furnished by the Emergency
Fleet Corporation shipyard of fifty
ways. and to construct with funds sup
piled from the same source fifty or
more steel cargo ships at an estimated
cost of S1,100,000 each. The agreement
was that upon complexion OF me shlps
the fleet corporation might purchase the
land at cost, failing which the con-
tractor might purchase the. plant at a
value to be fixed by appraisal, failing
which the government would scrap the
plant and remove it.
The estimated cost OF constructing
the yard was $21 100000. On October
23 the Fleet Corporation placed an
order for seventy additional steel ships,
estimated to cost 81 l,650,O00 each, call
ing for longer ways and piers, and also
more shop and storage capacity. On
November q the contractor revised the
estimate of yard construction cost. add
ing $2,750,000 on account of the addi-
tional seventy ships and $3,250,000 on
account of unfavorablc subsoil condi-
tions, costly labor and necessary exten-
sions of the plant. On May an order
for sixty more ships to cost $1,425 900
each was placed All OF the 1870 ships
were to be completed by August 4,
1919.
The contracting company's compen-
sation for building both the yard and
The ships was fixed at percentage
OF the estimated cost of the ships, with
premiums for early deliveries or saw
mos in cost and penalties for delayed
deliveries or increased 'ost. The maxi
mum fee under this arrangement would
he S14 14,4400O0, ana the minimum fee
S8.91O 900 Mr. s1lez testified yesterday
that to date the company had been
New-York tribune., 1918-12-21

mate showing the expected cost of the
yard at Sb5,000, 900 (sincc increased by
$6.o00,eod e3aitional work authorized
by the llcct Corporation).
1T Is o.';-:gcd that owing to this dis
organization in receiving material the
whole system of checking and record
ing the receipt and distribution of ma
teraIs broke down, with the result that
1t vas impossible to determine from
the records of the company what ma
tcrial was received or what was done
with 1T when received or what was on
hand; that large crews of men were
held idle awaiting the arrival Of ma
tcrials that were tied up somewhere in
the jam; that this in turn resulted in
Il disorganization Of the morale and ef-
ticicncy Of the labor forces and held
back the essential pier and foundation
work from the fine weather of October.
November, and part of December and
threw it into the severe winter of the
end of December and Januarv.v
New-York tribune., 1918-12-21
''Organized Riot and
Estate Of ChaOs'' There

1--WE could not examine this array
of evidence without coming to the con
clusion that prior to February ! there
existed at Hog Island a condition
which, superficially at least, would i'm
press any one as an organized riot
tangled mass or state of chaos
"The most significant single fact in
dicating the point of view at Hog ISL
and was that bills for materials, largely
lumber. were prepaid (and properly
prepaid) to the extent Of oyer S10,-
100000, but no effort was made by the
agent until our investigation to prove
whether the prepaid bills were in fact
followed by the actual receipt of the
material paid for.
"Another fact Of strong significance
is that while the contract provided in
express terms that the agent shc uld
keep detailed plant cost account
and contain very careful provisions
defining cost. yet the agent at an early
GATE took the position that since the
government paid for everything that
went into Hog Island it was unneces-
sary to comply with this provision.
Hence, ut no stage of the work since
last Deca mber could it be determined
what any unit of plant construction
cost. Thus, it was never possible for
the agent, and the agent never at
tempted, to supervise either its own
work of the work Of it's sub-contractors
from the point of view of what the
,uor urS cOotirO
New-York tribune., 1918-12-21
Shipping Board Action
Is Not Decided Upon

What the Shipping Boards action in
regard to the report may be is not yet
determined. There is reason to believe
that it does not concur with the view
of the Investigators as to the probabil-
itv of unduly excessive cost. 1t is ex
Dected that the Senate Commerce Com
mittees inquiry, which will be resumed
soon after January /, will bring out
the precise attitude Of the board in
this regard, and it is remarked that the
testimony of General Manager Piez be-
fore that committee yesterday was FAR
from indicating any hostility to the
American international Corporation.
The subject is also involved in the in
tention of the Emergency Fleet Corpo-
ration to decide soon after January L
whether it would be in the public in
terest for it to take over the manage
New-York tribune., 1918-12-21
Report Of Advisers
From Navy Is Quoted

so far as the data before us show,
the general scope of the plan has not been
very materially changed since the Novem-
Der 81 estimate, although the final guam
greater than in that estimate
From the data available it does not ap-
pear to Us that the increase of the esti-
mate from S27,000,000 of November q to
the final estimate of s55,000,000 can be
accounted for by the expansion of the plant
subsequent to November 27.i
while it is opinion that the plant
as finally built could not have been pro-
duced within the original estimate, it also
appears that the final cost will be con-
siderably in excess of the figure that might
reasonably be expected from consideration
of the finished plan. and this conclusion
would seem to be substantiated by a COM
parson of the costs of the elements of
this plant with those of the two other
fabricating yards The total cost Of the
600 per slip, as compared with S699. 900
for Bristol and $3.50. 900 for Newark Bay
There are sufficient differences in the
three plants to raise question Of doubt
as to any conclusions drawn from an ap-
solute comparison between the costs of
the plants. In general. it appears that.
as compared with the Bristol plant. the
Hog Island plant is a much less complete
plant, and its construction is of a less
permanent character, and it would be ex-
plants that the cost per slip ut Hog Island
would be materially less than at Bristol.
I'm comparing the Hog Island-Newark
Bay plants, they appear TO be generally
similar, the provision of shops and store
houses at Hog Island being somewhat more
complete than at Newark Bay. and the
entire plant being laid out for vessels
considerably larger. These differences, how
ever. would not appear to account for the
difference in cost per slip between $1,10C,-
eco and 1890 600.
I've are of the opinion that the Novem-
ber 27 estimate for the Hog Island project
was INSULT icient for q plant contemplating
provision for fifty building ways that a
portion of the high cost is due to the un-
favorable weather conditions. to the df-
Sicultie, Inherent in the concentration OF
such huge volume Of work in one location
where speed is Of great Importance, to
the increased cost of labor, and to the
large area Of plant provided per Slip and
finally, that after making allowance for
these conditions the cost will be higher
than we are able to account for by the data
that have been before us.
eve have examined with great car
the daily and weekly contemporaneou
reports of the Fleet Corporations plan
and resident engineers; also the dali
diaries of many Of the operating Off
Gals of the agent; also the reports O
srecial examinations made by tn
higher officials of the Fleet Corpora
ton or by engineers specially sent t
Hog Island for that purpose. We hav
read the statements, practically con
temporaneous. of witnesses before tn
Senate committee, and also have had in
te1viewed hundreds of intelligent EN-
rloyes, contractors and their repre-
SontotiyrS
New-York tribune., 1918-12-21
Unacritten Obligation
Is admitted BY AU

Although the contract was made
With fhe American International Com
NAVY the report says. there was an
p,nwritten obligation publicly admitted
by by all parties to consider the engineer
inc firm Of Stone & Webster and the
New York shipbuildlng corporation sts as as
Jointly interested IN 'he oentM,s aus aha tha
aqnarms. amer;con international shlpbuild;n,g
cornoration, Gln1r'rali was organized as the the
Uuapo, 1912 through which the yard and
ships shiney actually we're to be t built; IT,,
tails t on the status Of the sh,pyard:f ,S.r aftsr
tho data Of the contract the sh'pyara
New-York tribune., 1918-12-21
carl X. Gray Resigns From
Railroad Administration

. WASHINGTON, Dec. 2o.-Carl r.
uray' OF Baltimore, director of the
''S'slon Of operation of the railroad
administration, has resigned, and Di-
'ec'or General McAdoo has accepted
"iS resignation, effective on January 15
N'. Mf- Gray. who formerly was
p'es'aent Of the Western Maryland
"''Foad' said he was in need of a COM
"a announcing the resignation to-
ms s"e Mr. McAdoo said no successor to
S's' tray has been appointed.
New-York tribune., 1918-12-21
Continued from page I


Seiectives to name the third member
oi 'he hoard of arbitration. Should
suen tribunal report that the cx-
pe"ol'ureS were reasonably necessary
'"a' would end the controversy; If,
on 'Ne other hand, the board should
ma That Tie expenditures were un-
reasonable in the aggregate, it should
state the amount of the excess. land
payment thereof should he demanded
of the agent"
In leaning toward the view that the
expenditures at Hog Island have been
excessive, the Investigators were largely
influenced. apparently by the findings
OF their technical advisors, Archibald
l.. Parsons, civil engineer, and S. M.
Henry, naval constructor, both of the
united States navy, who saw. in part:
New-York tribune., 1918-12-21
Speed Not Sacrificed

at was certainly possible to super
wise the undertaking from the stand
point of cost without detriment to
speed. In February Admiral Bowles
was sent to Hog Island to exercise the
full power Of the Fleet Corporation in
he matter OF direction and super
vision. He was able to increase the
efficiency of the work and yet eliminate
unnecessary salaries in three depart
ments and rental charged for unneces-
sary equipment, thereby effecting a
saving of several thousand dollars q
New-York tribune., 1918-12-21

While to-day S the shortest
day of the year, it's plenty
long enough for folks who
shop here!
Abundant stocks. Roomy
aisles. Courteous statesmen.
Things men and boys
wear. Leather and metal
novelties. Sporting Goods.
Silk neckwear. Who ever
heard Of man having too
many scarfs!
Warm, winter overcoats-
A Christmas order on US is
sure to meet with warmest
thanks.
How bout it PAP
Outdoor sleeping suits for
the whole family.
RoGERS PEET CoN1PANY
Broadway Broadway
al l5tn st. The at 34th St.
Four
Broadway Corners" Fifth Ave.
at Warren at 4lst ST.
New-York tribune., 1918-11-06
Pimlico Results

flrst race tfor two-yesr ods; purse $1,000. 1.-Two
SO so. $3.50 $3.50. won; Phantom Maid. 100
!ua tkunnier). slleo third. Time, l:o7 80 The
Dauphn. 'Oriponda. Lillian Shaw "Veto, Nor
anon. Translate. Belario. Viva McGeo and Drum
Second, race thandicap; selling; for ,hrec-ycar-
oles and inward purse. $1,000: SIX furlongs>-
man. lls tschuttinger $3.50 third Time. i:lS a"S
Sea Beach. fAnackassin. The Decision. Irne,
BlSzeaway. kilmer. Peep Again and Langden also
Third race tho Manly Memorial steeplechase
Handicap: for four-rear- cids and upward; $40 0cU
added; two miles and haifl-Bet. lac tkeatingl
tIordl. $3.50 s., second; Duettis,e lSS tByers,.
$50. third Time. a;i3. 'Trumpator -Nutmey
rTs9hs pss " f. KnshslkamR pnN, sntnled kngs'owq
Gold Bond also ran.
Fourth race (tha Forest Park Handicap: for
s .., and ~ ap%ard purse g. oSo ono
non: Valor. 100 (Tnirberi, sl7.Io, s750. second
leo,hares. l27 f.unsforil, $3.50. third Time.
80 90 Regal Lodge. LErrant and Hollister also
Fifth race (lo Govan. Purse; claiming: for
thrse-ssa ds and qpward purse 81 900 mile
sT snd a. 90 ls ~ Kelsay sl2.
500. second: Whimsy. ll3 Parringtonl. $3.50,
tlnrd- Time, 1:a7 a-5. yodeling and John /. Day
also "
sixth race lthe Juvenile Handicap: for two-year-
lSshdel, so. s2Io. s2.lo. won; Mad Halter. i04
yks Ss9 Sc sS79 seecnd Oyer There, los NIe
Light, Ophelia and Passing shower also ran.
seventh race selling, for three yssr-olds and up
nsTl WI, ,4rse Sl:ooc; enc mile and haf)--sky
WouA Thrush 100 lrmsor) SEQ 81 20 second
iyls. ll2 tprsece, $40. third Time. i:S5 5 j.
Man o the Hour and Irregular also ran.
'lreld tGrirh entry
New-York tribune., 1918-11-06
Commerce Beats Morris
In Game at Polo Grounds

The High School OF Commerce foot
ball team rose in all its glory in de-
feating Morris High School in their
annual game at the Polo Grounds yes
terday, by score of II to 0. The
result was totally unexpected, as Nor
rs has enjoyed a good season to date
while the victory was the first Of the
tall for Commerce.
Morris was on the defensive for the
greater part of the game. saving itself
from two touchdowns in the first and
second periods by holding Commerce
twice on the l-yard line. But the
Morris line weakened in the second
half and Commerce touchdowns fol-
lowed
In the third period, Commerce gained
the ball on a weak punt. After sew
eral small advances by Burger and Nc
knight, Sampson tossed a long forward
pass to Margolies for a 30-yard gain.
Sampson and Burger then hit the Nor
ris defence until the ball was advanced
to the 5-yard line, where Morris was
penallzed half the distance TO the goal
line for otfside play. Morris made a
determined stand, but on the fourth
down Burger went over.
Commerce scored its second touch
New-York tribune., 1918-11-06
Levinsky to Test
Dempsey S Wallop
AT Quaker City

PHILADELPHIA, Nov. 5-Two years
ago Battling Levinsky could have boxed
rings around Jack Dempsey, the logical
opponent for Jess Willard and his
heavyweight title. Two years, however,
make great difference to a boxer
especially when he starts to go back. .
Tho bout between Harry Greb, Of
Pittsburgh, and Levinsky last summer
at Shibe Park proved that Leyinsky has
lost both speed and hitting powers. If
Dempsey shows the real class he has
been accredited with he should win in
short order when he faces Levinsky to-
morrow night in Philadelphia ring.
1t will naturally DC Levinsky's pur-
pose 10 stay the limit. and endeavor to
outlook his hard-hitting opponent. 1t
was this expectant evasiye feature of
the match that caused two local ref
crees to pass up the job of being the
third man in the ring Should the bout
prove to be disappointment it will
have a further unsatisfactory angle
with an out-of- town referee in the ring.
New-York tribune., 1918-11-06
Miss Della Tore
AndH.L. Nehring
Victors at Tennis

Hugh l.. Nehring, with a total Of
sixty-two games won, and Miss Ger
trudc Della Tore, VINO had forty-tw o
to her credit, we're the winners yester-
day in the progressive mixed doubles
lawn tennis tournament for the benefit
Of the Red Cross on the clay courts of
the West Side Tennis Club, at Forest
Hills.
Sixty-four players entered the tour
ney, three matches being played in the
morning and five in the afternoon.
Under the rules of this novel competi-
tion each woman player paired off with
man player at the start of the tour
ney and continued as his partner until
a whistle blew, signifying the end of
the match.
Both We're then credited with the
number OF games they had won at that
time, and both changed partners, con-
tinuing this process until every woman
had played with every man. after which
the total number of games won by each
player decided the prize winners. II. H.
Clifford planned and managed the tour
uamnnt