The Washington herald., 1918-02-10
SAYS MILLIONS
WERE WASTED
AT HOG ISLAND
]. H. Towle Testi6es Emer.
gency Fleet Corporation
Merely Expostulated.

/ 2uOAC ECNCldlAOnS dbONl tlS
Hog Island shipyard came out yes
terday before the Senate Commerce
Committee.
Emergency Fleet Corporation at the
Island, admitted that millions were
wasted in construction, while the feet
corporation merely expostulated with
the American International Corpora.
\ tion.
Francis H. Bohlen, of Philadelphia,
one of the owners of the island, said II
was optioned up to February oil
March, 1917, at $1,000 an acre. Begin
ming negotiations in June, twice thai
sum was paid for the land.
Mr.. Towle, who was an Omaha civil
| engineer, was sent to supervise the
construction of the yard on the bar
| ren island. Ineff1ciency and delay
were evident everywhere, he said
Sometimes 1900 freight cars waited tc
be unloaded.
Policy of Ship Board.
Ibid the Shipping Board direct you
| to remedy the situatioh?" asked Sen
ator Nelson.
"That was not the boards policy"
What was the policy" /" asked Sen
ator johnson, of California.
THE Emergency Fleet Corporation
took the stand that the American In
ternational Corporation assumed al
responsibility, and that the fleet cor
poration should not interfere"
THE American International Cor.
poration did as it pleased?" inquir'
ed Senator Jones of Washington.
yes"
THE situation has been changed
has it not?" asked Senator Nelson.
''Yes. understand Admiral
Bowles went there last week with
full authority to supervise"
Mr.. Towles said he was regarded
by the A. I. C. people as an ''un'
friendly critic" because he express
ed himself freely.
Johnson-"As a matter of fact, al
the Emergency Fleet Corporation
did was merely to expostulate?"
Towles-"Yes."
Testimony ran that r. L. Hunt
D. T. Pierce and Thomas B. Reed
were hired as press agents at $500
$500 and $500 monthly.
Were they employed to boost
the corporation?" questioned Sena-
tor Fletcher.
I'D rather not comment on that,
answered TowIe.
Did political pull count in get.
ting contracts?' was another OF
Senator Fletcher's queries.
Towle-'T wish you wouldn't in
sist on an answer"
Vardaman-"Can't you give us in
formation that will help run down
scoundrels?"
TowIe-'I don't know a great
deal about it Of my personal knowl-
edge. Most of the men were fair
and square"
1t developed that Holbrook. Ca
bot and Rollins were to get a ST.
soc, 900 contract to build piers, on
which $335,OOO profit was to be
realized.
1t also came out that thirty days
ago, Stone and Webster who are
interested in the yard, agreed to
furnish experts from their Boston
office for consultation, at 100 per
cent advance over their regular
salaries. The government was to
pay this advance. 1t was explained
that the usual custom was to
charge private individuals three
times the mems salaries.
Price Agreement Made.
Mr.. BohIen. who is a law profess
sor at the University of Pennsyl-
vania, owned 400 of the S46 acres
used on the island for the shipyards,
Charles N. Black, of New York, and
his sister and brother own the re-
mainder.
One night in June. 1917, said Mr.,
Bohlen, a Philadelphia man named
Steinmetz telephoned his first inti-
nation that the property was de-
sired. He and Steinmetz went to
New York and visited offices which
seemed to be both Stone and Web
sters, and the American Interna-
tionaI Corporations. A Mr.. Con-
nick" and Vice President Stevens,
of the Corporation refused to pay
s., 900 an acre.
A price of $1,000 was agreed
upon, the understanding being that
the New York men got 800 COM
mission per acre on the sale to the
government. Later the government
refused to buy the land, and the
commission was called off, the fiat
price being $4,000. The government,
however, holds an option on the
property.
In October 1916. an option of
81, 900 per acre was allowed to pri-
vate individuals.
THE option expired in February
or March, 1917" said Mr.. Bohlen.
We were glad. We thought the
land was undervalued. I'VE re-
fused an extension"
He explained that at the time of
the $1,000 option there ware no
railway facilities for reaching the
island.