New-York tribune., 1918-02-15
Wilson Orders
Investigation
At Hog Island
President Asks Attorney
General to Start Criminal
Action IF Needed

WASHINGTON, Feb. 14.-1nvcstiga-
ton by the Department of Justice of
the American International Corpora
tion's construction of the govern
ment's big fabricating steel shipyard
at Hog Island, Penn, was ordered to-
day by President Wilson, with view
TO criminal prosecutions if the facts
develop more than reckless cxpcndi.
1ure OF government money
The American international Corno.
ration is composed of some of the
country's most powe Sful financicrs, in
cluding Frank A. Vanderlp, Percy A.
Rockefeller, J. Ogden Armour, Robert
Dollar, Robert s. Lovett, William r
Cory, John d. Ryan, Theodore N. Vail.
otto II. Kahn, Pierre S. du Pont.
James Stillman, Beekman Winthron
and Charles A. Stone.
Chairman Hurley of the Shipping
Board, vino had requested the Hog ISL
and action, indicated that the corpora
uons contracts for building the yard
and ships, involving many millions of
dollars, might be cancelled, which was
taken to mean that the government
might take over the yard, complete its
construction and build the ships itself.
This step has been urged by members
Of the Senate committee investigating
shipbuilding.
Later to-day it was officially an
nounced at the Offices of the Shipping
Board that the government intends
ia ing over the management of six
shlpyards working on government con
tracts within the next few days. Gov
ernment control will be extended to
other yards just as rapidly as the Fleet
corporation can organize an operating
staff to handle them, it is predicted.
until practically all of the 1872 yards
now in operation are placed under the
immediate direction of government
agents.
This government action has become
a pressing necessity in certain yards,
it was stated at the Shipping Board.
because OF gross mismanagemcnt un-
covered
Chairman Hurley declined. however.
to discuss the alleged widespread mis-
management in the yards and refused
to make public at this time what yards
are to be taken over by the govern
mcnt first.
The President asked for the Hog ISL
and investigation in the following letter
to Attorney General Gregory:
Mr.. Hurley. of the Shipping Board,
has called my attention to some very
serious facts which have recently been
developed with regard to contracts
made In connection with the shipbuild-
n rcyr>yo Il.
ating at Hog Island.
"They are so serious. indeed that
do not think that we can let them be
taken care of merely by public dis
closure and discussion. l would be very
much obliged if you would have some
trustworthy person in your department
get into consultation with Mr.. Hurley
about the whole matter with a view
to instituting criminal process in case
the facts justify it,
Charges Of mismanagement and a
reckless spending of government funds
at Hog Island have been made freely
nesses have testified that the ward.
for which The Shipping Board is put
ting up all the money, may cost twice
the sum of S21,O00,00O carried in origi-
nal estimates. The slow progress made
in construction of the yard and re-
ports of loose management prompted
Chairman Hurley three weeks ago to
put in full charge of the works former
Rear Admiral f. A. Bowles. assistant
general manager of the Emergency
Fleet Corporation, who is now on the
ground
Mr. Hurley's threat to cancel the
international Corporations contracts
was contained in letter to Admiral
Bowles, directing him to uncover any
irregularities and notifying him that
Attorney General Gregory had been re-
quested 20 designate a special assistant
to assist him. Admiral Bowles was d-
rected to effect more economical man.
agement, but was asked to await the
Senate Committees report before an
nouncing any plan of action.