New-York tribune., 1918-03-07
To Be Ready Two Months
Ahead Of Time. SEN
ators Hear
Inquiry Delays Work,
Is Plea of Robinson
He Declares Attacks Hurt
Workers Morale; High
Salaries Defended
[Stdf Correspondence !


market value of "know-how" and
.sub-know how" it came out in the
Senate Commerce Committee inquiry
into Hog Island this afternoon
that the American international plans
Z pleasant little surprise for the coun-
try in the shape of the first completed
fabricated ship on September 3. Some
OF the Senator'S, however. seemed to be
less interested in getting the first ship
two months and ten days ahead of
schedule than in the appra sal of the
two kinds of "know- how"
"know-how" IS the comprehensive
wcrd first used by Admiral Bowes. by
which the services rendered by the
American International as agent of the
Emergency Fleet Corporation in the
Hog Island enterprise nave come to be
described 1t is for this "know-how"
and it's application that the American
International is to receive approx
mately $4,000, GOO. Senator Harding
decided to-day that the official designa-
ton of the fees received by the subs
contractors should hereafter be Sub
krow-how."' 1t developed that sub
know-how costs about 100000 at Hog
island.
Johnson Probes Deeply
Senator Johnson pursued a long line
of questioning OF Dwight P. Robinson,
president of the American Internation-
al Shipbuilding subsidiary, designed TO
bring out the two kinds of know how,
and the fact that the fee paid for the
primary know-how does not include
payment for secondary know-how.
A similar line of examination, chiefly
pursued by Senator Johnson, was aimed
at proving that the International had
been 100 generous in its sub-contracts.
because the sub-coltractors received
rot only fee that would correspond to
the know-how profit in q lump-sum con-
tract, but also were paid rental for
their equipment at the rate of ) per
cent 4 month, with, However. limit at
four months, no matter how long the
equipment might subsequently be in
service.
Mr. Robinson defended sub-know- how
and the equipment rental at great
length, endeayoring 10 show the Sena-
tors that both were IN accordance with
common contracting practice. His diff
Guilty in making those matters plain to
the Senators appears to lie in the
nature of the contract.
If the American iO-af h aG
made a lump-sum bid for the whole job
II would nave been assumed that the
corporation. as we'll as its sub-con-
tractors, would have 4 profit OF an un
known amount: because, in this par
ticuiar form OF contract, the profit is
fixed and disclosed. it has become
matter OF great concern, and as it is
definite and known. it makes an out
standing objective for examination as
20 whether it is too large.
Payroll an Issue
l. IS in this matter of profit or fee
and IN the payroll that the Senators
perceive the chief prospect of ascer-
tanning that there has been an ex-
connection with the Hog Island work
Senator Johnson is powerful cross
examiner, and he bores mercilessly into
inese matters Of fees and salaries. Me-
Robinson became somewhat "riled" by
tnis inquisition, and finally intimated,
muca 70 the Indignation of the Senator
from California, that the Senatorial in
sestigation was more or less of nuis-
anee and. far from promoting the build
ing Of ships, was delaying them by rea-
son of its depressing effect on the
morale Of the Hog Island organization
ne Senator sharply replied that the
opinion Of Mr. Robinson or Of the Amer
can International or Of Stone and Web
ster Tor that matter would not affect
me determination of the committee to
Keep rlgh. on digging. Mr.. Robinson
explained that he was not aiming his
remarks at anybody in particular, but
Senator Johnson felt, nevertheless, that
ne had been hit
cone to the work by petty and i'll
advised fault-hnding in the press and
Otherwise, was more disastrous 70 the
plant than Gynamiting. The damage
Done by dynamite could be quickly re-
PARED, but the injury done by gossip
ans SANDER vas so insidous that 1T was
c'fficul, both 20 locate and to cure.
Defends Wage Scale
Adverting to salaries, Mr.. Robinson
again defended the scale paid at Hog
Island, insisting that salaries were not
<rger than on other similar work, and
mat 70 disturb them, as proposed by
resolution adopted By the committee
some days ago, would ,bG great mis-
lake Senator Fardaman was of the
opinion that, If the American fnterna-
ponal WAS unable successfully TO do lts
~ork without such high salaries. il
would be we'll for the government TO
cancel the contract and take the work
evsr itself
Those large salaries make me nery
ous. said Senator Nelson.
that's the way 20 get ships quickly"
answered Mr. Robinson.
-, bat We find, up our way" explained
she Senator from Minnesota, that they
aons help sell Liberty Bonds"
Senator Johnson endeayored to show
~ the witness that the American Inter
national had haggled for some weeks
Tisn the Emergency Fleet Corporation
over its fee, starting with a demand
Tor 10 per cent, ard finally closing the
contract On 8 per cent Of the estimated
coz, Of the ships, only when i. found
that u could not get cent more"
eus ~ the Fleet Corporation. Mr.. Rob
iinson Admitted ina. 10 per cent had
been asked originally, but that he per-
Eonally rad taken the position that il
~ar too much
Seeks Causes Of Delay
Senator Jones touched on a delieaA
subject when he inquired Of Mr.. ROB-
srson a. N whsther there war anything
now being done or left undone by the /
government that could subsequently /
psintsd 70 ~ csuss OF delay. +