The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1919-08-27

SAY YOU will not pay on the cancelled
contracts until you have audited
their books1"
No" Deane responded How
ever I've never talked with Skinner
on this phase Of the situation. and
/ don't know what his attitude viii
be 80
Determination of what was
charged as cost In tho cost. plus plan
outside OF labor and material, was
the next matter taken up. Legal
services were ordinarily included In
this, but the salaries OF agents OF
tho company In Washington were
not. IL was explained by Dcane.
Lawyers are employed and paid by
fees and not by salaries by the
yards. The saiarie. Of physicians are
allowed under tho Industrial lnHur.
ance act
Cigars Not Paid For
III these expenses are reasonable
wen stand for them" Dcane dc.
elared. referring also 20 the travel
ing expenses Of company officials
called back East by tho shipping
board The entertainments and
cigars furnished at iaunehinEs are
not paid for by the government di.
rcctly. no stated.
Bonus paid for early delivery then
was brought up by Kelley.
"a flat sum II paid for early de-
livery" Deana replied 10 question.
lis ~ necessary 20 have a spo.
ciaily rigid inspection because Of exs
ira flaws that might develop ON ac.
eoun, Of hurried construction"
Kelley asked.
Dcans said he didn't know.
Neither did he know whether
there had been many complaints
about hurried construction.
Bonus Tssnpsatisu
The element Of human nature
would prompt tho builders TO let the
work siide a little and tho big bonus
would be n constant temptation In
that direction. wouldn't IT." asked
Kelley.
Yes. but I couldn't say for SURE
D~ane answered.
did many contractors earn tho
bonusesr- Kelley continued.
Yes. quito a few" Dcane sald in
reply.
The Aberdeen rrcord ship earned
a bonus Of go. 900.
Each contract varied and pe naities
were incurred II the ships were not
delivered on urns under tn. bonus
plan. pcans said Some contractors
wouldn't accept tho bonus plan. he
said. but no did not know Of any
Instances where different contractors
had been paid different bonuse. on
the narno kind OF work.
M~c Data sought
After II had been shown that. un.
der contracts 3ss and iT5. Skinner
Eddy would receive n bonus OF
$4,000 n they delivered the ships
ahead OF time. even one day, Dcane
was Instructed 20 present 10 tho
ootnmittc. data on all bonuses paid.
experimenting contracts sss and
JOB. 800 skinner a Eddy would ha
paid $500 n day for Zach day shlpn
wcrc delivered ahead OF time" Walsh
said. In other words. II they de.
iiv~rcd n ship 30 days ahead OF tlne.
they would set $4,000 plus 81. 900. {"
Deanc was Instructed to tabulate
made with the Skinner q Eddy cor.
poration-
Vast sum Provided
Contract iT5 with skinner A FSfy
allowed the builders $500 a day for
early delivery with a maximum OF
81 900. and 5000 extra per ship.
which was 10 10 paid n the IA
ships on that contrnc, were deitv-
cred on the average 90 days ahead
OF time. This would provide a
bonus OF $4,000 n ship wns
turned over 10 dayu ahead Of time.
Dcane was instructed to show tho
committee whether tho contract
price on certain Skinner q Eddy
ships had been lowered from ST.
$40. 900 20 1890. COO by an agree
ment Of July IS. 1918. Ito was
also ordered 10 show the commit
tee whether any contracts had been
made for tho saic OF unfinished
huii-.
With regard to tho delivery of
lumber. u wns shown that tho ship
ping hoard had no agent NJ the
destination when lumber was ship
ped TO yards building government
ships. and that they had no final
check on how much lumber WINS
delivered.
SIoan~ Rebuked
Dcano was asked whether he
thought II would have been proper
practise for Capt. MaTcc to have
mado arrangements 20 grant con-
tracts 10 tho winHlow yard ~ he
knew no WINS going 20 work for
that company. Deano replied in
tho negative.
Testimony Of n. G.. Cosgrove show.
ed that the Sloan interests Ind taken
n "belligcrent attitude" toward the
Emergency Fleet corporation. Altho
an agreement provided that the
Sloans. Joseph and Richard. were TO
appoint managers In their yards. sub
ject to ratification by tho fleet cor.
porauon. the fleet corporation had
stepped In and appointed n manager
when the incumbent manager was
unsatisfactory to them. This was
done in both yards. The managers
were later called in by the fleet cor.
poration and told that they did not
represent the fleet corporation.
They represented the Sloan com
pany." Cosgrove testified, "and
were subject 10 the terms of the
contract between sloans and the fleet
corporation"
Wntercd Claims IIinted
Sloan's relations with the fleet
corporation became further strained
when he was asked to nay a higher