The daily banner. (Cambridge, Md.) 1897-2008, 1918-02-05
TRUST HEADS HOG
ISLAND hackers
Big Steel Men and FinanCieTS
InCiu1sd, ProberS Hear.
GREAT WASTE IS REPORTED
Company First Wanted 10 Per cent
Commission on Every Ship. But
Finally Accepted Per Cent

Washington, Feb 5.-The Identity
of the financial hackers OF tie Amer
lean International corporation wai r.
vealed before the senate commerce
committee.
4 list Of stockholders in tn Hog
Island enterprise was read into the
record by Senator Hiram w. Johnson.
California. 1t includes steel mag
mates. big packers, a powder king,
and financiers. The stockholde s, as
presented by Senator Johnson. are:
]. Ogden Armour, George ]. Bald
win, Charles A. Coffin, William f.
Corey. Robert Dollar, Joseph P.
Grace. Pierre S. Dupont, Otto H.
Kahn, Percy A. Rockefeller, James A.
Stillman. Frank A. Vanderlip, vii
liam Woodward, Beekman Winthrop,
Robert X. Herrick. Robert s. LCvatt,
Ambrose Mcneil, Henry S. Pritchet+,
John D. Ryan, William L. Saunders,
Charles A. Stone, Guy E. Trip. Thee
dore N. Vail, Edwin S. Webster and
Albert H. Wiggin.
They've certainly boxed the com
pass. speaking nautically," said Sen
ator Knut Nelson, Minnesota. as s n
ator Johnson handed the list to the
stenographer.
The American International Sip
building company is subsidiary of
the American International corpora,
ton.
They will be terrible looking. They
will assemble scows" This was the
picture of the fabricated steel ships
to be built at Hog Island, that Joseph
p. Cotton drew before the senate
commerce committee.
Mr.. Cotton was special counsel for
the U. S. Shipping board. He drew
the preliminary drafts of the contrac
made by the shipping board with TIE
American International corporation
for the Delaware river shipbuilding
yard.
These fabricated ships" went o"
MIR. Cotton, who is now pra"t:cing
law in New York. will have no point
ed prov, or less of a prov than ever
you saw on an ocean boat. And the"
will be pretty scant On the stern. In
fact. they will have no stern lines.
1.-THE fabricated ship is an expert
ment, but they tell me-that is, naval
constructors of the submarine bat
company, and they are good ones
that they will rum"
Mr.. Cotton's appearance before the
committee was to relate details Of TIE
negotiations for the Hog Island con-
tract. Under tt the government pays
the cost of the yard, all overhead
charges and the American Interna-
tional Shipbuilding company sub
aidi5g Of The Amsrican In.sIaationa,
corporation. SeeeiFes profit OF Sc,
100000 for 120 ships.
The capital stock of the American
International corporation. Mr. Catton
said. was $50,000.0O0. He added that
in the shipbuilding plant the govern
ment put up everything and the cor.
poration nothing or practically nth
ing"
"Is all the capital stock paid in?"
inquired Senator Nelson.
"They have sins enough. but this
isn't one of them" replied the law
yer.
The American International corpor-
alton, when 1t opened negotiations for
building fabricated steel ships at Hog
Island, first demanded a commission
of 10 per cent on each ship TITS
would have represented a profit of ap
proximately s12,OOO,0O0 Mr.. Cotton
so testified.
He said he fought for a reduction
to per cent. The fee later was fix
ed at S per cent On each Of the 120
ships. totalling about s6,6oO,00o in
profits.
You virtually drove them dow,.
from 10 per cent?" asked Senator
Nelson.
81 wouldn't describe it as driving
them down when they are getting as
much money as they are" replied Mr..
Cotton.
ri don't care what the profits are"
said Senator Johnson, eff we are 60
ing to get ships. In the case of Hog
Island, where the government has to
bear all the expense, and we don't get
any ships, It's matter for irrita-
ton"
There has been great waste going
on at Hog Island" said Senator Dun
can Fletcher, Florida, chairman of the
committee. who is responsible?"
Mr.. Cotton said the Emergency
Fleet corporation had stationed rep
resentatives, district agents and IN
snecfors in phiIadelphia RI hold eY
penses in check. He plainly indicated
in his testimony that the Fleet cor
poration was responsible. The con-
tract was so worded. he said. that the
agent could be fired" BY the owner.