The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-02-15
WILSON ORDERS
INVESTIGATION
OF HOG ISLAND
President Acts With View
to Criminal Prosecution
if Necessary.
NAY CANCEL CONTRACTS
Enormous Outlay for Experts
Supposed ito Know How"
Again Discussed.
NAY CANCEL CONTRACTS
Special DespstcA to TIE Sry.

Special DespstcA to TIE srS.
WASHINGTON. Feb. 14.--Development
came rapidly to-day in the Governments
investigation into the construction Of the
worlds greatest shipbuiiding yard at
Hog Island.
President Wilson ordered an inves..
cation by the Department OF Justice of
facts which have developed in connec-
tion with the work with a view to insti-
tuting criminal prosecution in case facts
Justify IT,
Acting Attorney General Davis was
giving consideration tonight to the Sc
lection Of the right man to aid the Ship
ping Board in the inquiry.
Chairman Hurley sent letter to for
uer Rear Admiral r. A. Bowles. who
IL in charge at Hog Island. directing
him to make an Investigation to discover
possible irregularities" and suggested:
OF course. We may ind 1t necessary to
cancel the present contract entirely"
President Sends Letter.
The apparent recklessness with which
Government money has been spent at
Hog Island. some details OF which al
ready have been developed by the Senate
Committee on Commerce, now engaged
IN investigating the shipping situation.
prec,pitated the action by the President
In sending the following letter to the
Attorney General:
Mr.. Hurley OF the Shipping Board
las called my attention to some very
serious facts which have recently been
developed with regard to contracts made
in connection with the shipbuilding pro-
sramme with the company operating at
Hog Island. They are so serious. in
deed, that I do not think We can let
them be taken care Of merely by public
disclosure and discussion. I would be
very much obliged II you would have
some trustworthy person In your depart
ment get into consultation with Mr.. Hur.
ley about the matter with view TO in
shutting criminal process In case the
facts Justify IT,"
Chairman Hurley's suggestion to Ad-
yniral Bovlss that It may be necessary
tor the Government TO take over the
Hog Island yard with its contracts in
yolying millions Is not a threat, it Is
sat4 ,S5Dnsba aesAttdpS hAes esasA es~ew Co
such e6NfAe. and the Shipping Board
,hAs delayed action awaiting the result.
of the Senate inquiry. If the Govern
nsent does take over the yard 1t will
complete the construction and build ships
ITSELF 1t is apparent that the investiSa.
ton will reach beyond delay to the work
and extravagant expenditure.
Negligence Charged.
TIE letter to Rear Admiral Bowles,
ssistsnt general mansg ger Of the Fleet
4 vnytS4 IN voo ~
several weeks ago to assume supervision
for the Shipping Board. follows: From
Tho newspaper reports as we'll as from
.he indications which have come from
YOU. 1t Is quite clear that there is a con-
dition Of disorganization as well as Of
negligence at Hog island.
by taking hold Of conditions with a
strong hand l am convinced that you
will be able to bring about more careful
and economical management II there
have been Irregularities Of any kind
punishment must be meted out to the Of
tenders. and am requesting the Attor-
ney-General to assign one OF his assist
ants to aid you In this investigation.
The whole question Of the manage
ment Of affairs at Hog Island is now be-
fore the Senate. and felt that you
would want to know that in my opinion
We should await the judgment OF the
committee before copmitt!ng ourselves
to any programme Of action. OF course
we may find it necessary to cancel the
present contract entirely.
III In this connection you have any
suggestions to offer ! will be very glad
TO have them"
Estimate Far Exceeded.
The Hog Island contract Is held by
the American International Corpora
TONS construction subsidiary. the Amer
lean International Shipbuilding Copo-
ration. 1t was signed last September.
At that time the cost OF the completed
yard, with it's plant for assembling and
f,fty shipways. was estimated at &21.-
900, 900. Already, with the yard and
plant less than so per cent. finished,
27.000.0 900 has been spent, and the cost
Of completion Is va-iously estimated at
Tho completed project is expected to
cost between $4,000, 900 and $50. .000, 900.
The Shipping Board Is without facts
on which to base even the suggestion
that the American International Ship
building Corporation has committed any
criminal act, but Chairman Hurley has
assured the President that he courts q
full and free investigation Of every cir
curstance.
Rear Admiral bOWeS mas cnecteo
few minor changes In personnel and
methods at Hog Island, but In the COM
plete reorganization Of the scheme he
had awaited the outcome Of the Senate
tion, which It had been thought
v as near completion when the more re.
cent admissions Of extrayagance by the
American International officials brought
about the present crisis.
Labor Leaders Examined.
The Committee on Commerce did not
proceed with the Investigation Of the
Hog Island situation further to-day but
conte ented itself with examina tion OF labor
leaders on questions OF hours. OF pay.
.Ntes OF employment and other COM
ponents Of the general problem OF Great.
!ne a vast force OF ship laborers.
The news that the Department Of Jus
,ice has under consideration the investi-
cation of the Hog Island project was re-
csived with slight comment.
Senator johnson (Cal). who has been
asking the greater number OF the en-
barrassing questions Of ohscials Of the
Emergency Fleet corporation and the
American International Shipbuilding
Corporstion, said: ~ "
II have not gathered from the evidence
thus far adduced In tho committees
hearings nor from any examination that
cssstsss6 - &soead sssss. r.