New-York tribune., 1918-03-12
ARTICLE X (In conclusion)

ARTICLE On conclusion)
~ PHILADELPHIA, March LII am con-
Quoting my own Congressional in
n vestigation,' Admiral Capps is
ported to have said in explaining the de-
liberateness with which he examined and
negotiated tho fabricated ships contracts
before executing them. "They tell us now
that may forget the expense if we will
only give them ships soon. A little later
they will forget the speed and emphasize
the expense" he added.
run this job in such manner that
there will be nothing to conceal and moth
ing that need be ashamed Of" were the
instructions G gven to President Robinson of
the American international Shipbuilding
Company by the parent American Interna-
tional Corporation.
Nevertheless, the Congressional investi-
cation came.
In the series of articles, of which this is
the last, we have seen what the Hog Island
plant is doing and what it purposes to do.
In conclusion let us consider the nvestiga-
ton and what it is driving at
First-It seeks to prove that the contract
between the Emergency Fleet Corporation
and the international was a profiteering
contract.
SecondIt seeks to prove that the Inter
national, acting as the Fleet Corporations
agent, has been wasteful of government
funds in the matter of general expend-
itures, salaries and sub-contracts.
Third-1t seeks to prove neficency on
the part of the International in the gen
eral conduct Of its operations.
Shipping Board Made Contract
Objective No. l really relates to the
Shipping Board rather than to the Ameri-
can International. The board, acting
through the Emergency Fleet Corporation,
took about three months to work out the
contract and finally fixed it's own terms of
compensation to the American International
for its services as agent in building the
Hog Island yard and in building the ships
The Shipping Board should have been re-
quired to answer the profiteering charge
On the contrary, the American International
has been called upon to defend this charge
and has been held up to the country as
being responsible for the acts of the board
The board thought that about $G,OOOOOO
was fair compensation for the work of ere
ating by several times over the largest
shipbuilding plant in the world and build
ing therein 12O vessels within record time.
SO far it has not been called upon to vim
dcatc its own judgment. On the contrary
the American International has been put in
the light of having been responsible for
the contract and has been forced to JUS
tify it.
Although the firm Of Stone & Webster.
which furnishes the organization and most
of the brains for this great work. actually
did execute two great government works
elsewhere as its patriotic gift or contribu-
ton to the war without profit, it could
hardly be expected to go on indefinitely
working for nothing. 1t will hardly be
disputed that the American international
was entitled to some compensation The
governments own sad experience in trying
to run the business side of the war with
out business brains and experience has
pretty conclusvcly demonstrated that ex-
perience, knowledge and ability are worth
something 1t is my personal opinion that
it would have cost the government several
times $6,O00000 had it tried to build and
operate Hog Island directly. The whole
outcome of the depends more on exccu-
tive and business ability than anv other
factor, and that is the most difficult factor
to obtain. In brief, I consider that s6,0OO-
600 was very moderate fee for what is
delivered in return. The scheme of this
contract, which bases the pay on "normal
fee" for each ship completed with bonuses
for speed and penalties for delay. with addi-
tional bonuses for making actual cost lower
than estimated costpart of the bonus go
ing to the international, part to the work
men and part representing a net reduction
in the cost of the ships to the government
is an admirable one.
High Cost Does Not Imply Waste
The second objective Of the inquiry is an
entirely legitimate one, and it was perfect
ly proper to call the officers of the
American international to defend their
doings in this respect. Speaking roughly
and having in mind that ships at any cost
are national necessity and ambition.
should say that there has been no real
waste of government money at Hog Island
That work has been done at times at an
enormous cost is admitted. The physical
difficulties of the task in extraordi-
narily severe weather, the failure of trans
portation and the weakness of the human
element inevitably involved in such an OK
pcditious work in its earlier stages. have
cntailcd dismayng outlays in specific in
stances in proportion to results. But would
any one for that reason have postponed tho
work until the weather was favorable.