Pine Bluff daily graphic., 1918-12-21
HOG ISLAND
 PROBE NOW
 MADE PUBLIC
Cost Exceeds Original Esti- mate by Forty Million Dollars; Delivered One Ship.

Washington, Dec. 20.-The long
 awaited report of the department of
 justice on the governments great Hog
 Island Shipbuilding project, made public at the White House today on wireless instructions from President Wilson says searching investigation has disclosed no criminal liability, but
 recommends that board of arbtra- tion determine what part if any, of
 the more than $60,0000 0O0 the plant cost was in excess of reasonable
 necessity and should be demanded. of
 the contractors by the government. In brief the investigators report. That the facts do not justify crim-
 inal process and that no fraud or secret profits has been established That the probably cost of the plant will be about S61,000,00O (including $6,000000 for additions by order of the Emergency Fleet Corporation compared with an original estimate of $21 ,000 ,0O0 and a revised estimate of s27 100000.
 That no clear explanation of this
 discrepancy has been forthcoming That prior to February 1 last,
 condition existed at Hog Island which 'superficially at least would impress anyone as an organized riot tangled mass or state of chaos."'
 That the contractor or agent, the American International Corporation in substance has taken the position that since this war a war job cost was of
 minor importance; and,
 That the question of reasonableness of the expenditures should be refer . red tu q board of arbitration provided { for in the contract, proce .dings to be
 closed if the board finds the expendi- lures reasonably necessary or, other wise payment of the excess to be de-
 manded by the governmAnt
 The report, which is dated Septem- Der 12, 1918, also stated that the plant would be completed in September: that the contract substantially was being compiled with and that the con- troversy hinged mot so much upon the question of accomplishment but
 upon means, methods and expendi- tures" But attached is a letter from the investigators. dated September 21. which the attorney general transmit ted to the president. referring to press reports that the program is falling
 behind schedule and calling attention | to the fact that the report was based
 upon conditions as they appeared ear ly in July.
 General Manager Piez, of the Emer-
 gency Fleet Corporation, appearing
 yesterday before the Senate Commerce
 Committee testified that the Hog Is-
 land yard would be completed in
 about sixty days; that the cost would
 be about $63,30000O and that the
 plant had delivered one ship and laid fifty keels.
 gation was made by two assistants
 to the attorney general-G. Carroll
 Todd and Mark Hyman-beginning
 last Februaryswhen President Wilson
 asked the attorney general to get in
 to consultation with Chairman Hur- lcy Ol Iuo SAVJplA6 UOdAu oOOut LHO
 whole matter with view to institut-
 ing criminal proceedings in case the
 facts justified it."
 Charges of graft and gross waste
 had been made in an inquiry conduct
 ed by the senate, commerce commits
 sion and MT. Hurley had written to
 the president and to MT. Gregory say
 ing there was ".serious disorganiza-
 tion and negligence at Hog Island" and that he desired the aid of the at
 torney general in Investigating condi-
 tions. The two assistants with the aid two naval technical advisers, Civil Engin- eer Archibald L. Parsons and Naval Constructor S. M. Henry. and force
 of special agents, investigated from February until July and then prepared (Continued on page fiye)