Evening journal., 1919-09-02
SQUAhDER MILLIONS.
AT FORT PLANT.
hell Loading Plant Costs
l3 Millions Above Con-
tract Price
PROBERS REPORT
SALARY BOOSTS

WASHINGTON. Sept. 2.-The House
subcommittee investigating ordnance
expenditures during the war last night
made public testimony taken In its
nearing showing that the government
shell-loadins plant at Fort, near Port
Penn, Del, uncompleied when armistice
was signed. had cost the government
10 date Si4,O00.O0O. although the estl-
mated cost when the contract was let
on the cost-plus basis was placed at
from si,25o0OO 10 Si,5OO,0o0.
The difference between the esti-
mated cost and the cost thus far paid
out by the government for the build
ing Of the plant Is shown in testimony
given by Lieutensnt-Colonel II. II.
Hawkins, OF the ordnance department
and a report made last October by
Major Clair Foster. OF the consiruc-
lion division OF the army, and inserted
by the committee in the records.
The contract for the plant was lei;
10 the Marlin-Rockwel Corporation,
which organized a subsidiary concern
known as the Marlln-Bockwell Load
ing Company. which in turn contract
cd with the Fred T. Ley Company for
construction Of the big plant, and ad-
'oining town to house 10000 persons.
Major Fosters report cited some Of
he salaries paid by the loadins COM
oany. the Ley Company, with ad-
vances in pay made after a few
months service. The manager OF the
f1rmer company, the report asserts,
lad his salary raised from $4,000 TO
$4,000: the assistant manager, "a
.awyer and former bond salesman
from $4,000 to $4,000; the chief en-
gineer from $500 a year. with $50
a month for living expenses, to SiOOOO
q year. and the treasurer, from $500
10 5000. OF the treasurer the report
said: Government officers questioned
as TO the treasurer's duties said they
had never been able 10 see that ne did
anything except to endorse the gov
ernments checks and sign the loading
company's."
The assistant treasurer, who hsd
been working for $500 came to work
for s20s0 and was raised TO $500
The chief engineer. whom Major. Fos-
tor declared 10 have been incompetent
"hut far and away the best Of the
ding outft" Yves hired at $500
.,r plus $50 for living expenses. ana
soon raised 90 $1,000 Comment
r on these salaries and increases,
,aior Foster says:
"Plesse bear in mind that all these
salaries do not come out OF the load
ing company's fee. The government
pays them and then lays 10 per cent
10 forSof them. Bear in mind bhat while
The spirit OF the contract, II not the
actual wording OF It, contemplates
that the loading company shall Itself
oesr the expense OF designing me
,lant. as part Of the service for whicn
is being paid 10 per cent. on the
otal cost. the designing has been
hsrsed as construction expense
nd the government thus not only
avs for It. but pays 10 per cent on
op OF g."
Major Fosters report cited lnnumer-
able changes OF purpose LOADING ma
erlsl. etc. by the ordnance depart
1ent Including the adoption OF tne
,srlow patented bomb, only later 70
lbandon 70. and says, ordinance never
aad an experienced representative al
ihe plant For a time It had there a
major from whom the company never
could get a definite answer ana then
Young and inexperienced lieutenant
whose work Yves purely perfunctory.
The loading plant was not complet-
ed in time to losd any shells before
Inc signing OF the armlstice. y town
hrit 10 house 20OO0 people win
.n,ovinr picture houses and every
thing" according to Major Hawkins'
was scarcely occupied. such build
ings as have been completed are now
used for storage purposes while an
effort is being made 10 sell inc Town
which Is some 1--WE miles from the
n,ant and apparently contiguous To- no
'orge cltv or industrial plant. The
eight and a half miles OF railway.
which has been built. but right OF
way for which is still pending IN lhe
courts. is useless except in the event
the loading plant shall be compieleu
and used for that purpose.
summing up his report on mis
particular inspection, Major Foster
says -,
regarding the Marlln-Rockwell
Company. 10 my way OF thinking, tne
outstanding fact disclosed by tnis
inspection IS that the company failed
io comprehend the difference between
contract for the performance OF
which Il would be entitled to make
whatever money it could by riskins
its own resources and the trust ac-
eepted 10 purely as an employe OF
the government.
1T failed to see that riskins moth