The Washington herald., 1918-02-06
SENATE WANTS
TO. GET HOG
ISLAND
Evidence Accumulates Thai
Yard Contract Was
Underestimated.

As a result of accumulative testi-
mony of waste and extravaganza at
the Hog Island, Philadelphia, ship
yard, the Senate Commerce Commit
tee, conducting an investigation
yesterday decided to summon Super
intendent p. o. Reed, the govern
ment's representative there.
Reed must explain why he o. KID
such items as the omnibus salary
raises made public yesterday.
Senator Jones. of Washington,
asked that he be called after Rear
Admiral Harris, formerly of the
shipping board. had testified on the
various stages OF building the ship
yard itself
Harris declared that the Ameri-
can International Company first es-
timated it could build the yard. the
government guaranteeing labor,
credit and material for $4,000, 900;
that by December l, the board
learned the costs had exceeded $685.
100000; and that now they were
more than $40.000,00O, with the
yard still incomplete.
.Know How" Men.
This, he said. was general
know how" contract. where the
government furnished everything
except the skill--the know how
did not hold the contractors to the
original estimates, and guaranteed
a cost-plus profit on the entire ex-
penses.
Concluding his testimony, Harris
bitingly criticised the shipping
boards methods of doing business.
Harris laid no particular blame on
Superintendent Reed for the mar
gin between the original estimate
for the yard and the actual cost.
Il went on the board originally
at the suggestion of labor men,"
said Harris. Il believed that il the
program were to be completed, gen.
eral advances in pay must be given.
! proposed the bonus system un-
der which the men received addi-
tional pay for fast work in turn
ing out a ship"
You are aware" said Senator
Calder. Of New York. that this has
often been criticisedT'
Yes. but it has produced ships
faster than before
ITO what do you attribute the criti-
cism?"
Many firms-for Instance, the
American International Company
were opposed to the very idea Of bo-
nus from the first
Divided Authority.
They" interrupted Senator Nelson,
of Minnesota, favored bonuses for
themselves. but not for the working
men Isn't that so2'',
Harris Harris answer was lost in general
After testimony that he believed
100000 tons of shipping might be pro-
duced this year. including vessels
Communicated, Harris was asked e
tell why he left the shipping board.
There was a practice" he said. "oi
subordinates going over the heads Of
their superiors. Mr.. Hurley was the
personal head Of the whole concern
Rear Admiral Bowles, who was under
me, was called over my head to re-
port to Mr.. Hurley. Rear Admiral
ROsseau had similar orders. One OF
my men. seeking instructions. sent
three separate telegrams-one to me
one to Mr.. Hurley and one to Mr.,
Piez-all alike.
"I'll have to see all three" he said
in explanation. Loyalty between my
self and subordinates under me wa:
destroyed"
THAT system would break down in
private hfe," said Senator Vardaman
why was It introduced"
Some men can make a success run
ming every detail of their business per
sonalIy, I do not believe it can be
done in so big a task. 1t delayed
many decisions two or three months
because the head OF the concern could
not get to the question"