The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-02-15
Writes Letter to Chairman OF
Shipping Board Calling For
Action If Facts Justify
INJURY DEVELOPS
SERIOUS PHASE In
LETTING CONTRACTS
Original Estimates in Hog ls-
land Enterprise $2I,0 100000
and Already $42,000,OOO
t4as Been Expended

Washington. Feb. I4s---Pregtdenf
Wilson today took charge OF the probe
into the affairs of Hog Island, scene
of the largest shipbuildtng project
@veF LAUGHED by government.
He directed Attorney Gen eral Greg"
ory 10 assign an official of the depart
Ynent OF justice to an immediate IN
veatigafion into the charges of whole
sale extravaganza and waste in the
letting OF contracts, with a view to
criminal prosecution II the evidence
warrants
His letter 10 the attorney general
reads:
mfr. Hurley. of the shipping board.
has called by attention TO some very
serious facts which recently have been
developed with regard to contracts
made In connection with the ship
building program with the company
operating Hog Island. They are go
serious. indeed. that I do not think
that we can let them be taken care
OF marsly by public disclosure and
discussion. I would be very much
obliged II you would have some trust
worthy person I'm your department get
into consultation with Mr.. Hurley
about the Whole matter with view
10 instituting criminal proceedings In
Cordially and sincerely yours.
WOODROW WILSON"
Acknowledgement Gregory Ia In Mis-
sfssippi attending the funeral OF his
mother. In his absence. the letter
went 70 John II, Davis, solicitor gem
erai OF the departn ent. who is acting
in his place A letter from Mr.. HDr-
ley. detailing some Of the more start
ling disclosures that have been made
z4r4A IN Tall
tracts. had been sent earlier 10 the
day TO Mr.. Gregory's office. and This,
too. had beer turned over to the SO
Ncitor-geueraI.
Mr.. Davis was unable 10 say tonight
just what procedure win be followed.
1T is probable. however. ~that one Of
the assistant attorney generals OF the
department will he assigned TO the
case.
VANDERBILT Head OF Concern
Frank A. VAnderlip. president Of
the National City bank. OF New York.
and chairman of the war saving s
stamps committee OF the treasury de-
partment. ia president OF the Amert-
can International corporation. which
holds the contract with the govern
nenL Membership of tho board OF
directors includes some OF the biggest
men In the country's finances and In
vustries,
In addition 70 the possibility of
criminal prosecution being entered.
the government may cancel the con
tract entirely and take over the
project This was Indicated IN the
following letter sent by Mr.. Hurley
TO Raar-Admiral Bowles, assistant
general manager OF the Emergency
Fleet corporation of the United States
shipping board. whom the shippinx
no ri ut 20, Aat Co e..
supervise all shipbuiiding projects in
Delaware district;
From the newspaper reports, as
well as from the indications which
have come from you. II Is quite clear
that there Is condition of disorgani-
cation, as we'll as of negligence at Hog
Island
by taking hold OF conditions with
a strong hand ] am convinced that
you wilk be able TO bring out more
careful and economical management,
IL there have been irregularities of
any kind. punishment must be meted
out to the Offenders. and / am request
ing the attorney general to assign one
of his assistants to aid in this invastf-
cation.
The whole question of the man
sgement OF affairs at Hog Island ia
now before the senate and | felt that
you would want to know that In my
opinion we should await the judE-
ment of the committee before COM
Knitting ourselves to any program of
action. OF course. we may ind II
Necessary to cancel the present con-
tract entirely"
If in this connection you have any
suggestions to offer I will be very glad
to have them.
EDWARD N. HURLEY"
Disclosures Prompt President
The action OF che president was
prompted by the disclosures which
have been brought out In the inves-
LEGATION undertaken by the senate
commerce committee into the affairs
OF the governments entire ship build
Ing program.
Regardless of his action, however,
the committee plars to proceed with
it's inquiry. limitations were given
this afternoon by members that they
had already practically decided TO lay
some Of the evidence obtained before
a federal grand jury.
The Hog island ventures provides
for the largest yard ever contemplated.
with enough ways TO permit work on
FIFTY ships at a time. Original estf-
mates fixed the cost ct s21.0o0. eco.
Actual expenditures and authorize
tions TO date. the senate inquiry dis
closed. have exceeded $4,000. 900.
The testimony before the committee
divulged huge profits TO be made.
Promoters OF the American Intarna-
tionai corporation. It has been shown.
were TO reap profits OF between sg.-
100000 and 100000 on the basis. so
called in investigation Of their know
how knowledge The government
furnishes all material.
Under the original contract the
building Of ships at Hog island was