Evening star., 1918-02-14
Special Assistant to Attorney
General to Aid in lnvestigat-
ing Expenditures.
BOWLES ORDERED TO
AWAIT SENATE REPORT
staff Of Management Already Re
duced and Other Changes
Considered.

Al the request Of the shipping board
which charges gross mismanagement and
reckless spending of government money,
President Wilson today directed Attor-
ney General Gregory to investigate the
American International Corporations
construction of the government fabricat-
and determine if there has been any
criminal misuse of government funds.
A special assistant TO the Attorney
General will be sent Immediately to Hog
Island to work with F. A. Bowles, assist
ant general manager of the Emergency
Fleet Corporation. whom Chairman Hur-
ley of the shipping board placed in
charge of the project three weeks ago
with full powers to reorganize.
Although the shipping board has no
facts to indicate there has been crimi-
nal dereiiction. it wants to ascertain
the true situation and learn just how
money put up by the government has
been spent.
Testimony before the Senate commit
tee investigating shipping has shown
that construction of the yard will cost
the government from SAC. .000. 900 to s50--
600, 900. although original estimates
placed its cost at only $21 00o. 900 The
work is being done by a subsidiary of
the American International Corporation.
Ordered to Await Report.
Mr.. BowIes has been directed to rec
ommend any changes in management
he thinks necessary. but has been or
dered to await the Senate committees
report before taking any drastic steps
Already he has reduced the staff of the
management to some extent and has
outlined other changes which he thinks
should be made
indicated that they may recommend that
the government take over construction
of the yard and do the work itself.
The President also directed the At
with Chairman Hurley of the shipping
board in his investigation. About S42-
100000 of government money has been
involved in the Hog Island project. in
poration, headed by Frank a. Wander
lip. president of the National City bank.
has figured.
The Hog Island shipyard on the Della
ware river. near Philadelphia is planned
to be the greatest in the country. with
more than fifty ways on which to lay
down ships
Has Contracts for Ships.
The American International Corpora
ton, through its subsidiary corpora
tion, the American International Ship
building Company, has contracts for
its construction and for shipbuilding
there from the Emergency Fleet Cor
poration. acting for the United States
Shipping Board.
Testimony before the Senate com
merce committee, investigating the
whole subject of shipping contracts.
has developed statements that the gov
ernment will be obliged to spend be-
tween s4e.000.O00 and $50. 1000. 900 where
government and civilian experts esti-
mated S21.000,000 would suffice.
This testimony developed charges by
Wisconsin. on the floor of the House
that through laxness in the letting of
the contracts the American Interna-
tional and it's subsidiary were placed
IN position to loot the Treasury of mil
lions of dollars
These charges. however. that the In
ternational was 'gouging" the govern
ment, have been characterized as ma
iiclousiy false by George J. Baldwin
of New York, head of the American In
ternational Shipbuilding Corporation.
in his testimony before the Senate com
merce committee.
Obtained $4,000 an Acre.
II was developed at the Senate com
nlittee's hearing that Col Black OF
philadelphia, one of the former owners
of Hog Island. got $4,000 an acre for
his property. whereas a year ago h.,
held an option on Hog Island al $1,000
an acre
One of the principal points of attack
on the international Shipbuilding Cor
poration in the Senate committees in
Nestigation has been that by its con-
tract with the Emergency Fleet Cor
poration il would receive a fee of Sc
100000 for the know how of buiIdin :,
the Shinyar I'd md .-cttir.r -. .-I-.-l'