Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-12-20

(COnC1nueu lTOIl lISI d6S.I
der this arrangement would pc sda'-
44u, 600 and the minimum fee S.
$4,000. Mr.. Piez testified yesterday
that to date the company had been
paid nothing.
Although the contract was made
with the American international
an unwritten obligation publicly ad-
mitted by all parties to consider the
engineering firm OF stone & Web
ster and the New York Shipbuildlng
Corporation as Jointly interested in
the benefits and burdens. A separate
tional Shipbhilding Corporation, was
organized as the agency through
which the yard and ships actually
were to be built.
Difficulties Are Cited.
In a section on the status of the
ward. later modified by the letter to
the Attorney General the report says
in less than year after the date of
the contract SAG acres of marsh land,
without railroad facilities. will be
complete industrial city OF 3o.ooo men,
served by two trunk lines OF rail
road and equipped to deliver
to the government two completed
7.:5On-ton steel cargo vessels each
week" Speaking of difficulties en-
countered, blockade of cars loaded
with material extending from Phlla-
delphia to Norfolk, Va, is described.
The report tells in detail of the vast
work involved in the investigation. of
the questioning of everybody from
high officials to taxi drivers and OF
the examination of thousands OF
books. accounts, bills. diaries and
other papers 1t recites at length the
charges made against the contractors
and the answers on which the inves-
tigators do not attempt to pass judg-
mont.
This is the conclusion as to crimi-
nal liability:
mitted by the President, our conclu-
sion is that the facts do not justify
criminal process: that no fraud or Sc
cret profits On the part of the Off
Gals Of either the agent or the fleet
corporation has been established; that
on the pay rolls, which have been
prosecuted the laborers, laborers'
timekeepers and pay roll supervisors
were in the main honest.
Accounting Methods Endorsed.
Zone of the accountants employed
by our chief accountant criticised the
latter's methods as inadequate. These
criticisms were submitted to two
leading firms of certified accountants
-Messrs Haskins & Sells, and
Messrs. Touche.. Niven & Co, who
reported in writing that the crit
icisms were unfounded and that the
methods and scope of the accounting,
taken in conjunction with other lines
of inquiry. were so laid out as to
bring to light extravagances and r.
regularities if any such existed
This investigation was conducted
by us in the midst of other official
labors. 1t was given precedence until
we were satisfied that excepting GER
tain minor frauds no grounds exist
ed for criminal process and that there
would probably be no delay in the
delivery of ships if steel and labor
were forthcoming. Those being the
vital points we reported orally our
conclusions in regard to them, and
thereafter proceeded in the normal
course to consider the issues of fact
and law involved in this complicated
record"
I'm what we have next to say we
do not wish to minimize the boidness
of the plan of the agent and the cour-
age and success of the undertaking,
but we are not able to find affirlna-
lively that the agent has satisfactory
ly accounted in the hearings before US
for the expenditure of so large a sum
of money in the construction of this
plant.
"Waiving all minor questions of con-
troversy, the outstanding fact is that