Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1916-1918, 1918-02-15
President Orders Attorney
General To Investigate
Hog Island Contracts, Said
To Hold Millions In I'm
fair Profits.
COMPANY OFFICER
DENIES CHARGES

| Washington, d. c., Feb. 14.-Presi
dent Wilson today directed Attorney
General Gregory to investigate the
much discussed Hog Island ship yard
contracts, which have been criticized
adversely before the senate commerce
committee, and determine II there has
been any criminal misuse Of the gov
eminent funds
The president also directed the 1T
torney general to work in conjunction
with Chairman Hurley Of the shipping
board in his investigation. About
81, 100000 of government money has
been involved in the Hog Island pro-
i ject in which the American InteYna-
| tional corporation, headed by Frank
A. Vanderlip, president of the Ma
tional City bank, has figured.
BIGGEST IN AMERICA
The Hog Island ship yard on the
Delaware river near Philadelphia is
planned to be the greatest in the. coun-
TRY with more than fifty ways which
to lay down ships.
The American International corpora
tion through its subsidiary corpora
ton. the American International Ship.
building company, has contracts for
|! its construction and for ship building
there from the emergency feet cor
poration acting for the United States
shipping board.
ESTIMATES FALL FAR SHORT
Testimony before the senate conn
jmerce committee investigating ship
! ping contracts has developed state.
ments that the government viii 10
Obliged to spend betxeenN so. 900, 900
and $50. .000, 900 where goveFnmsnt ana
civilian exDerts estimate I "a ga Aea. .lll4
would snflce. ~ sas
This testimony developed charKcs
lby Representative Lenroot republican,
Of Wisconsin, on the floor of the
house, that through laxness in the let
ting of contracts, the American In
ternational and its subsidiary were
placed in position to loot the treasury
Of millions of dollars.
$6,ooo,o00 FOR "kNoW HoWr
The charges. however. that the In
ternational was "gouging' the govern
ment have been characterized as ma
| liciously false" by George j. Baldwin
Of New York, head OF the American
International Shipbuilding corporation
in his testimony before the senate
commerce committee. It has devei-
|oped among other things at the SEN
ate committees hearing that Colonel
Black of Philadelphia got $4,000 an
acre for his property whereas year
ago he held an option on Hog Island
at $1,000 an acre
One of the principal points Of attack
on the International Shipbuilding cor
poration in the senate committees In
vestigation has been that by its con-
tract with the emergency fleet cor
poraticn it would receive fee Of
Sc 0o0 900 for the ssknow how" Of
building the ship yard and getting out
the ships.
CHARGES ARE DENIED
Mr.. Baldwin before the senate COM
mittee, attributed the rise in costs 20
the feet corporations delay in signing
the contracts. The feet corporation.
he declared, while pressing for speed,
wasted two months in signing . con-
tract and threw the work into mid
winter which brought also great in
creases in material, labor and every
thing else.
Charles A. Piez, vice president OF
the fleet corporation. said In his testi-
mony before the committee that there
had been extravaganza In building the
yard. Mr.. Baldwin. however, reminded
the committee that the engineer who
supplied the data on which that as
sertion was made. later withdrew
most Of it,
There has been great deal OF pres
sure in the senate committee to have
the government take over the ship
yard and continue the work itself.
HURLEY ASKS FOR QUIZ
Investigation by the department Of
commerce was recommended by Chair.
man Hurley Of the shipping board.
who asked that an assistant to the
attorney general be sent to Hog Island
to work with Assistant General Man
ager Bowles Of the emergency fleet
corporation. Mr.. Bowles was put In
active charge of the yard recently.
Mr.. Bowles has been directed BY
Chairman Hurley to put the Hog
Island yard on an economical basis.
Shipping board officials are of the
opinion that there has been nothing
worse at Hog Island than inefficient
management and reckless spending
Of funds, but they want to ascertain
all the facts