The Barre daily times. (Barre, Vt.) 1897-1959, 1918-12-20
NO CRIMINAL
LIABILITY
But Hog Island Shipyard
Cost $60,OO0,OOO More
Than Necessary
RESTORATION SHOULD
BE NOW DEMANDED
Says Report Of Special Com
mittee of Investi-
cation

washington, ID. T., Dec. 20-1he long
awaited report of the department of JUS
tice on the governments great Hog Is
land shipbuilding project, made public
at the White House to-day on wireless
instructions from President Wilson, says
searching investigation has disclosed no
criminal liability, but recommends that
board of arbitration determine what
part, if any, of the more than $6,000,000
the plant cost was in excess of reasona-
BILE necessity and should be demanded
of the contractors by the government. In
brief the investigators report:
That the facts do not justify erimi-
nal process and that no fraud or secret
profits have been established.
That the probable cost of the plant
will be about $6l 100000 tincluding So,
100000 for additions by order of the
emergency fleet corporationl, compared
with an original estimate of $2l 100000
and revised estimate Of 1927 100000.
That no clear explanation of this dis
crepancy has been Forthcoming.
That prior to Feb. last condition
existed at Hog Island which superb
cially at least would impress anyone as
an organized riot tangle, mass or
stage of chaos
That the contractor or agent, the
American international corporation, in
substance has taken the position that
since this was a war job cost was of
minor importance; and,
That the question of reasonableness of
the expenditures should be referred to
board of arbitration provided for in
the contract, proceedings TO be closed If
the board finds the expenditures rea-
sonably necessary or, otherwise payment
of the excess to be demanded by the gov
eminent.
The report, which is dated Sept. -,
1918, also stated that the plant would be
completed in September; that the CON
tract substantially was being complied
with and that the controversy hinged
mot so much upon the question OF ac-
compishment but upon means, methods
and expenditures" But attached is a
letter from the investigators, dated Sept
81, which the attorney general trans
mitted to the president, referring to
press reports that the program is falling
behind schedule and calling attention to
the fact that the report was based upon
conditions as they appeared early in
July.
General Manager Piez, Of the emer-
gency feet corporation, appearing yes
terday before the Senate commerce com
mittee, testified that the Hog Island yard
would be completed in about sixty days;
that the cost would be about s63,300OOO
and that the plant had delivered one ship
and laid fifty keels.
The department Of justice investiga-
tion was made by two assistants to the
attorney general-G. Carroll Todd and
Mark MISUNDERSTANDING last February
when President Wilson asked the attor.
ney general to get into consultation with
Chairman Hurley of the shipping board
about the whole matter with view
to instituting criminal process in case
the facts warranted it," Charges OF
graft and gross waste had been made in
an inquiry conducted by the Senate com
merce committee.
The report describes at the outset the
contract entered into by the emergency
feet corporation on Sept. 10, 1917, under
which the American International cor
poration of New York agreed to pur-
chase SAG acres of land at Hog Island
to be utilized for the purpose of the
contract upon a six per cent rental basis;
to build on this tract with funds fur
nished by the emergency feet corpora.
ton a shipyard Of fifty ways, and to
construct with funds supplied from the
same source fifty or more steel cargo
ships at an estimated cost of 81, 100000
each. On Oct. % the feet corporation
placed an order for seventy additional
steel ships, estimated to cost Sl,650OO0
each, and on May I an order for sixty
more ships to cost 81 $4,000 each. All
of the $50 ships were to be completed
by Aug. 4, 1919 These orders necessi-
tated construction Of longer ways and
piers, and more shop and storage capa-
city.
The contracting company's compensa-
ton for building both the yard and the
ships was fixed at a percentage of the
estimated cost of the ships, with premi-
ums for early deliveries or savings in
cost and penalties for delayed deliver
les or increased cost. The maximum fee
under this arrangement would be Sl4,-
100000 and the minimum fee SS,9l0000
Mr.. Piez testified yesterday that to date
the company had been paid nothing,
This is the conclusion as to criminal
liability:
I'm response to the question submitted
by the president, our conclusion is that
the facts do not justify criminal process
that no fraud or secret profits on the
part of the officials of either the agent
or the feet corporation has been estab-