Pine Bluff daily graphic., 1918-12-21

 slider the issues of fact and law in volved in this complicated record
 Stating conclusions as t1 alleged waste and mismanagement the repor, proceeds
 Tn what we have next to say We do not wish to minimize the bOlducss of the plan of the agent and the courage and success of the undertaking, put we are not able to find affirmatiyely that the agent has satisfactorily accounted in the hearings before us for the eM- penditure of so large a sum of money in the construction of this plant "Waiving all minor questions of controversy the outstanding fact is that the agents summer and fall es- inmates of $21 100000 and it's No vember 2 estimate of $2T ,000,000 have . been so far exceeding that the prob able cost of the yard will be about 61,0o0000 (including $6,000, ,C00,0c0 for recent additions made by order of the Fleet CorpOration) Such discrcp ancy must be due to some fundamental miscalculation ill the original esti- mate, to superVening conditions, in cluding enlargement of the plant. tJ miSmanagement in operation, or to q combination of these factors. A dis crepancy of such magnture would seem to call for a clear explanation from the agent but this has not been furnished + + +
 Considerable effort has been made by the agent in the hearings to stuli- ty it's own estimates by claiming that they were mere guesses that no body could rely upon. But the fleet corporation did rely on them; and there is no contemporaneous evidence justifying the agents present posi- tion. The letter of the agent trans hitting the revised estimate of No vember 27, made after two and a half months of actual contact With the work, in nowise foreshadoWs any thing except the normal variations of cost which might be expected in a job of this magnitude + + + "The most significant single fact :, indicating the point of view at Hog :. Island was that bills for material, \ largely lumber, were prepaid (and Iproperly prepaid) to the extent of lover $10,000,000 but no effort was made by the aegnt until our investiga- , tion to prove whether prepaid bills were in fact followed by actual re- ceipt of the material paid for
 "Another fact of strong significance is that while the contract provided in r express terms that the agent should keep a detailed plant cost account, and contained very careful provisions de- fining cost, yet the agent at an early date took the position that since the government paid for everything that went into Hog Island. it was unneces- sary to comply with these provisions. ,oI Hence at no stage of the work since last December could it be determined cost + + :F
 Tt was certainly possible to super wise the undertaking from the stand point of cost without detriment to speed In February Admiral Bowles was sent to Hog Island to exercise the full power of the Fleet Corporation in the matter of direction and supervis- , ion he was able to increase the eff ciency of the work and yet eliminate unnecessary salaries in three depart ments and rental charged for unneces- rary equipment, thereby effecting a saving of several thousand dollars a day. A similar reorganization in other departments is under way.'
 In foot note the report gives an accountants report that 37 men who were on the payrolls of Stone and Webster July 1, 1917 at average sal aries of $3,973 were transferred to the Hog Island payroll in September and !. $5,S79 each.
 A report of the naval technical ad- '' visers included in the report says so far as the data before them shows, the general scope of the Hog Island plant has not been changed very ma terially since the November estimate : of cost, and that the difference be- y tween $27, 7,OO0OOO and $55, ,OO0,000 can u not be accounted for by expansion Il subsequent to November 27. It says '' that the November estimate is regard U ed as insufficient, but after allowing D for unfavorable weather, increased : cost of labor and the necessity for speed the cost will be higher than the experts are able to account for. The u total cost of about $1,10J,000 per ship at Hog Island is compared with $699,- : O0O for the similar yard al Bristol and , $390,o0O at Newark Bay.
 u The Investigators refer to the con- tractors claim that the fleet corpora l. tion cannot claim the contract was Il not complied with because all sub t stantial acts were approved by the