Evening star., 1918-02-15
u. s. MAY ACQUIRE
HOG ISLAND YARD
Contracts Probably viii Be
Cancelled and Government
Operation Undertaken.
PROSECUTION MAY FOLLOW

Criminal prosecution will result II
the investigation by the Department of
Justice, ordered by the President, de-
velops facts that indicate more than
reckless expenditures of public funds
in the construction of the government s
big fabricating steel yard at Hog
Island, Fa-
Chairman Hurley of the shipping
board. who requested the inquiry. has
indicated that contracts with the
American international Corporation
for construction of the yard and ships
involving expenditures of many mil
lions of dollars, may be cancelled.
May Take Over Yard.
This is understood to mean that the
government may take over the yard.
complete its construction and itself
build the ships. This step has been
urged by members of the Senate com
merce committee investigating ship
yards.
The shipping board. it is learned.
probably Will take over within a few
days four or five shipyardS working on
ress has been particularly slow. Some
of the delays in the yards have been
charged to labor difficulties, and some
to inefficient mana cement.
To Decide Today on Inspection.
The Senate commerce committee, in
vestigating shipbuilding. will decide
today whether to make a personal in
spection of the Hog Island yard So
licitor General Davis. acting head of
the department in the absence of At
torney General Gregory, who had not
returned from attending the funeral of
his mother, is considering naming an
assistant to conduct the investigation
ordered by the President. but will not
do so unless he finds the Attorney Cen
eral will not return to the city for sew
eral days.
1t is probable that the departments
bureau of investigation will assist in
the inquiry. Reports that agents of
the bureau already had investigated
certain transactions in connection with
the Hog Island shipyard were not con-
frmed
President Wilson Calls for Action.
President Wilson asked for the inyes-
tigation in the following letter to At
torney General Gregory:
"Mr. Hurley Of the shipping board has
called my attention to some very serj-
Gus facts which have recently been de-
veloped with regard to contracts made
in connection with the shipbuilding
program with the company operating
at Hog Island.
'"rhey are so serious indeed that / do
not think that we can let them be
taken care of merely by public dis
closure and discussion. l would be yery
much obliged if you would have some
person in your department
get into consultation with Mr. Hurley
about the whole matter with a view to
instituting criminal process in case the
facts justify it."
Threat to Cancel Contracts.
Mr. Hurley's threat to cancel the cor
poration's contracts was contained in
a letter to Admiral Bowles directing
him to uncover any Irregularities and
notifying him that Attorney General
Gregory had been requested to desig-
nate a special assistant to assist him.
His letter follows:
From newspaper reports, as wen as
from indications Nhat have come from
you. it is quite clear that there is con-
dition of disorganization as well as of
negligence at Hog Island.
by taking hold of conditions with a
strong hand, am convinced that you will
be able to bring about more careful and
economical management. If there have
been irregularities of any kind punishment
must be meted out to the offenders
and I am requesting the Attorney Cen
eral to assign one of his assistants to aid
you in this investigation.
'"The whole question of the management
of affairs at Hog Island is now before the
Senate and felt that you would want to
know. that, in my opinion, we should await
the judgment of the committee before
ourselves tosany program of
action. OF course, we may find it neces-
sary to cancel the present contract en-
tirely.
"If in this connection you have any sug-
gestions to offer I will be very glad to
have them"