Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-09-07
Big PENALTY FOR
UNFINISHED SHIPS
A. l. S. C. Subject to $l4,-
600 Fine for Boats In
complete January l
CONTRACTED FOR FIFTY
Only Half of These Expected
to Be Ready on
.a.a nap yllon Time roy o.a

Bound by contract with the United
States Shipping Board Emergency Fleet
Corporation to deliver fifty ships from
the Hog Island yard by January /. 1919,
the American International Shipbuilding
Corporation now is confronted by the
possibility that it may be penalzed to
the extent Of $4,000 a ship for each yes
sci under the prescribed number it fails
to turn over on time
High officials of the Fleet Corporation
agreed today. following the publication
OF a report made to United States At
torney General Gregory on the opera
tions at Hog Island charging extrava-
gance and waste, that this great ship
yard would not be able to complete more
than half of the number Of vessels call
ed for in the contract.
Whether the penalties would actually
be imposed is question that cannot
be determined until after the contract
natures.
Reasons for Delay
= Chief reasons for the delay, as pointed
out, by Rear Admiral Francis T.. Bowles
assistant general manager Of the fleet
corporal tion,7 are; .....r.,.s. -. ....
get fabricated steel in sequence.
Second. Delay In the organization of
the working force at that shipyard. re-
sulting from delay in the shipment "
materials
Under the original contract which the
American International Corporation
made with the shipping board, fifty ships
were to be launched, completed and de-
livered by January 1. 1913. Thus far
only two have been launched. and
neither of these is yet ready for de
livery. To fulfill the contract 1t woult
be necessary 10 launch the remaining
forty-eight by November Is. to com
plete them for delivery by January l
Such an undertaking is regarded by
Emergency Fleet Corporation Officials
as virtually impossible.
Forty-one ships are now under con
struction at Hog Island, All of thes
are from thirty TO sixtylday behind th'
construction program, ADMIRAL Bowie
said. He was not ,disposed. !. however, t.
criticize the American fnternationa
Corporation. because of this delay. and
like Charles Piezr vice president an,
general manager of the feet corporation
was inclined to await an official cop.
Of the report to the Attorney Genera
before making any comment on it.
Estimate Too High
Both these officials indicated that Il
their opinion. the contracting compan,
had made it's estimate OF production to
high in the first place. and expresse
an opinion that probably not more thai
twenty-five ships will be delivered by Oh
Hog Island yard this year.
problems causing the Delay at Ho
| Island are In the. process OF solution,
said Admiral Bowles,. and ] feel sur
that ultimately the production of ship
| at Hog Island will exceed that promised
There is undoubtedly an opportunity l
the future TO make up for the not. vi
expected delay in the beginning"
Failure 10 deliver fifty ships this yea
will cast no reflection on the manag,
ment at Hog Island. in the opinion c
Mr.. Piez, who said that they ''simpl
had expected too much" The feet col
poration, he said, had never much hor
] that II would be accomplished.
1 Investigators who filed the "exorbi
tant prices" and "extravagance" repor
with the Attorney General. said ther
were no grounds on which to base Grim
nal prosecution.