Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1918-01-04
ADMIRAL TELLS OF
SLOAN SCANDAL y
SHIPPING BOARD OFFICIAL RE-
VEALS MANIPULATIONS OF
LOCAL FIRM.

The "inside story" of the govern
ment's dealings with the Sloan Ship
yards Corporation of this city, which
has been talked about the streets
here for some weeks, especially since
the government took over the man
agement of the plant recently, was
officially revealed this week in the
senate commerce committee at Wash
ington. d. c., during the course OF
it's investigation of the United States
Shipping Board.
Admiral Bowles told, according to
the press dispatches, how the gov
ernment advanced the Sloan Corpor-
alton $1.724,SOO, though its con-
tract is only per cent complete,
how the corporation paid the Clinch-
field Navigation company, whose
stockholders are reported to be In
terested in the Sloan plant also,
brokerage" of 100000 for obtain
ing the 16 contracts with the govern
ment, how it had been paying its
president. Phillip ID. Sloan. salary
of $4,000 year, how 1t had IN
vested much of the government
funds in various subsidiary plants
instead of the ships contracted for,
and how the government had finally,
after investigating conditions. COM
pelled the Sloan firm to give the
Emergency Fleet Corporation
mortgage of $75O.000 on its plant,
had taken all the bonds of the Cap
ital City Iron Works, a local sub
sidiary, and had acquired partial con-
troll of the Sloan yard at Anacortes.
Cuts Sloan's Salary.
According to Admiral Bowles' tes-
timony, the Fleet Corporation has cut
President Sloa,'s salary to $4,000
a year and, in response to tho ques-
ton. "What docs he do for thar, HOW
.nat the government is operating the
yard?" the admiral SAID
"He has nothing to do but keep
cliet and keep things in order.
admit that it looks like too much
money for the purpose. but you must
admit we did not have authority ex-
cept by the most liberal construction
of our contract with the Sloan Corpo-
ration to force the audit which led to
the disclosures"
Didn't you have any restriction
on the vast sum turned over to the
Corporation?" he was asked.
mo restrictions whatever. They
could have given it away or bought
candy with it under the terms Of
their contract"
"Who negotiated the contract"
General Goethals and his coun-
sell"
General Goethals was at one time
head of the Emergency Fleet Corro-
ration.
Admiral Bowles also testified the
contract is $7.S4O.OOO for Is ships.
To Investigate Further.
The senate committe proposes to
make further investigation of the
"Sloan shipbuilding scandal" as it is
referred to in the press dispatches,
and has summoned Charles Barnett
of the Clinchfield Navigation COM
pany, who introduced President Sloan
to General Goethals, Theodore N.
Ferris, former architect for the Ship
ping Board and closely associa ed
with Barnett, General Goethals AID
others, to shed what light they can
on the transaction.
Rumors regarding the so-caiied
scandal" have been rife in Olympia
for some weeks. President Sloan
made a hurried trip East the fore
part of November and returned about
the time the government took over
the operation of the plant, but has
been in Olympia but little since.
Besides buying the Capital City
Iron Works and greatly increasing
its capacity, the Corporation 'estab-
1ished a shipyard at Anacortes. to
which Admiral Bowles testified 1t
had advanced $155.00O of govern
ment money, and Is also said to have
bought large sawmill near Seattle
and machine shop in Portland. Ore.
Fifty-seven thousand dollars Of the
governments money went into the
local iron works, Admiral Bowles tes-
titled.
Referring to the $750,000 mort
gage the Shipping Board had taken
Admiral Bowles said he was hopeful
that the government would pull out
without q loss.