Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1918-02-14

OF HOG ISLAND
CONTRACT I !! HAS I ! !.
i''lIBEEN B ORDERED J ' / !
Attorney Ter! General Gregory
Will 60 to Bottom Of
", Ship Yard Contract.

Washington. Feb. l4.-President
Wilson today directed Attorney Cen
eral Gregory to investigate the much
discussed Hog Island Ship yard con-
tracts. which have been adversely
criticised before the senate commerce
committee. and determine IL there has
been any criminal misuse Of govern
ment funds.
The president also directed the at
torney general to work in conjunction
with Chairman Hurley of the ship
ping board in his investigation. About
$42.oo0.00o Of government money
has been involved in the Hog Island
project in which the American inter-
national corporation. headed by
Frank A. Vanderlip, president of the
National City Bank. has figured,
Largest In Country.
The Hog Island ship yard on the
Delaware river near Philadelphia. is
planned to be the greatest in the
country with more than fifty ways on
which to lay down ships .
The American International COR
poration, through its subsidiary cor
poration, the American international
Ship Building company. has contracts
for its construction and for ship
feet corpora ton acting for the United
States shipping board
Testimony before the senate COM
merce committee, Investigating ship
ping contracts. has developed state
ments that the government will be Oh
liEed TO spend between s40,o00.0o0
and $6o.000,0o0 where governmen,
and civilian experts estimated $21,-
600 900 would snfiice.
Il, This testimony developed charge.
by R@nr@sentative Lerroot, Repuhli-
eans at wisconsin. on tho noor OF, ,the
hsbse that through laxnsss In the let:
tinx af the cor.raets the Am m>racan II.
ttsrrattnrAl ard 1ts subsidiary were
EtaslaeAd In positio* to1loot the treasury
of fmil,tons Of d~llarx. i.
| Declares Statement False.
Theee charges, however. that the
International was "GouginE" the gov.
eminent have been characterized a.
win of New York. head OF the Ameri-
can International Ship building cor.
poration in his testimony before the
senate commerce committee.
| 1t has developed among other
things at the senate committees hear.
! ing that Colonel Black Of Philadel-
phia, one Of the former owners .o1
Hog Island, got $4,000 an acre fol
his property whereas a. year ago he
held an option on Hog island at 81.
900 an acre.
One of the principal points Of at
tack on the International Ship Build
ing corporation in the senate commit.
tees investigation has been that by it.
| contract with the emergency fleet cor.
poration 1t would receive a fee Of Sc.
| 100000 for the Know how Of build
ing the ship yard and getting out the
ships. Ill
Mr.. vanderlip's name was brought
into the investigation as being presi.
dent Of the mother corporation and
as having countersigned the contracts
Hurley Recommends 1t. sN
Investigation by the department Of
commerce was recommended by
Chairman Hurley, Of the shipping
board, who asked that an assistant tt
the attorney general be sent to Hog
Island to work with Assistant Gener.
al Manager Bowles of the emergency
feet corporation. Mr.. Bowles was pu,
in active charge Of the yard recently
Mr.. Bowles has been directed By
Chairman Hurley to put the Hoe
Island yard on an economic basis
Shipping board officials are Of the
opinion that there has been nothing
worse at Hog Island than inefhcient
management and q reckless spending