The Sentinel=record., 1918-02-15
DIRECT COMMUNICATION To
The ATTORNEY GENERAL
Charges Of Mismanagement Have Beer
Made Freely Before the Senate
Committee-Government May Com.
mandeer Yards and Annul Contracts
Awarded.

Washington, D. c., Feb. 1l.-lnyesti-
CATION by the department Of justice
of the American International Corpor~
atoms construction of the govern
ment's big fabricanng steel ship yard
at Hog Island, Pa, was ordered to-
day by President iWlson with a view
to criminal prosecution If the facts
develop more than reckless eXpendi-
lures OF government money.
AZ the same time Chairman Hurley,
of hipping board. who requested the
move indicated that the corporations
contracts Tor building the yard and
ships involving many millions OF dol
lars might be cancelled. which was
taken to mean that the government
might take over the yard complete
its construction and build the ships.
This step has ooon urged by members
Of the senate committee Investigating
ship building
The President asked for the in
vestigation in the following letter to
Attorney General Gregory
"Mr Hurley OF the shipping board
has called my attention to some verg
serious facts which have recetly been
developed with reeard to contracts
made in connet tion With the ship
building program with the company
operating a. Hog Island
They are so serious indeed that
10 not think that We can let them be
taken care of merely by public dis
closure and discussion ] would bo
very much obliged if You would have
some trustworthy person in your de-
nartment get into consultation with
Mr. Hurley about the whole matter
with a view OF institutins criminal
proceedings in case the facts Justify
it."
Charges Of mismanaeement and
reckless eNpendins Of government
funds al Hog Island have been made
freely before tine senate committee
Witnesses have testified that the
yard for which The shipping board s
putting up all the money may cost
twice the sum of s2l00p00o carried
in original estimates The slow pro-
sress made in construction and re-
ports OF loose management prompted
Chairman Hurley three weeks ago to
put in full charge OF the work prompt
ed Chairman Hurley three weeks ago
TO put in full charge OF the work
Former Rear Admiral f. A Bowles.
assistant general manager of tho
emergency fleet corporation who il
now on the ground
Mr. Hurleys threat TO cancel thu
| corporations contracts was contained
in letter to Admiral Bowles direct
ing him to uncover any irregularitiej
and notifying him that Attorney Gen
/ eral Gregory had been requested ia
designate a special assistant to as
sist them
Admiral Rowles was directed Ia
qfiect a more economical situation
but asked &c await the senate's report
before announcing any program OF
action
The shipping board, it was learned
tonight. probably will take over within
a few days four or five shipyards
| working on government contracts II
which progress has been particularly
slow Some of the delays in the yards
have been charged to labor difficulties
and some inefficient management
II any yards are commandeerel
their present contracts viii be can
celled and government experts vii
be put in charge
The senate commerce commission
investigating shipbuilding viii decide
tomorrow whether to make a persona
inspection Of the Hog island yard
| Solicitor General Davis. acting hea'
OF the department in the absence o
| Attorney General Gregory said TO