The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1918-02-15
U'NlTEDSTATES
MAY CANCEL BIG
ship CONTRACTS
Step Threatened by Hurley if Hog
Island Graft Charges Prove
True
COST DOUBLES ESTIMATES
COST DOUBLES ESTIMATES
Witnesses Say $21, 900, 900 Project
May Run Into $41,000,000,
Completed.

d washington, ID. c., Feb. 15.--Inves
tigation by the department of justice
OF the American International corpoI
atoms construction OF the govern
ment's big fabricating steel shipyart
at Hog Island, Pa, was ordered Thurs
day by President Wilson with view
to criminal prosecutions if the fact!
develope more than reckless expendi
ture OF government money.
v. s. May Take Over Yards
At the same time Chairman Hurley
Of the shipping board, who had re
Quested the move, indicated that the
corporations contracts for building
the yard and ships, involving many
millions OF dollars, might be cancel
led. 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 ship building
Presidents Letter.
The president asked for the .investi.
CATION in the following letter to At.
t0rney General Gregory:
"Mr. Hurley of the shipping board
has called by attention to some very
serious facts which have recently been
developed with regard to contracts
made in connection with the ship.
building program with the company
operating 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. would be
very much obliged if you would have
some trustworthy person in your de.
partment get into consultation with
Mr.. Hurley about the whole matter,
with a view to instituting criminal pro.
cess In case the facts Justify in"
Charges Of ReckIessness
Charges of Encouragement and a
reckless spending of government mon.
ey at Hog Island have been made
freely before the senate committee.
Witnesses have testified that the yard,
for which the shipping board is put
ting up all the money, may cost twice
the sum Of $21 100000 carried in orig
inal estimates. The slow progress
made in construction of the yard and
reports of lose management prompted
Chairman Hurley three weeks ago to
put in full charge of the work former
Rear Admiral F. A. Bowles, assistant
general manager of the Emergency
Fleet corporation who is now on the
ground.
HurIey's Threat to Cancel
Mr. Hurley's threat to cancel the
corporations contract was contained
in letter. to Admiral Bowles direct.
ing him to uncover any irregularities
and notifying him that Attorney Cen
eral Gregory had been requested to
designate a special assistant to assist
him. Admiral Bowles, was directed to
effect q more economical manage
ment, but was asked to await the SEN
ate committees report before an
n0uncing any program of action.
The Hog Island contract was the
largest of thre fabricating steel ship
contracts let by the Emergency Fleet
corporation for which the government
was to furnish all the money. The
corporation is acting in effect as an
agent OF the government and In the
words of Admiral Bowles before the
senate committee, is furnishing the
"knOw how" 1t stands to make a
profit Of $6,OOO,O00 on the yard and
on the ships 1t builds.