The Washington times., 1935-02-11
AWARDS MADE
AS EXPECTED,
PROBE TOLD
big Three Was Familiar With
Others Proposals, Witness
Reluctantly ConfeSSeS
International News Service

International News Service
Senate munitions investigators
wrung from an apparently re-
luctant witness today an admis-
sion that officials of the three
biggest shipbuildinQ plants in the
country talked over their respec-
tive bids for naval contracts be-
fore submitting them.
The witness was George B.
Yard, jr, former assistant to c.
L. Bardo, president of the New
York Shipbuildiug Corporation,
until last fall. Under insistent
questioning Mr.. Yard said he
frequently heard Mr.. Bardo tele-
phone officials of the Bethlehem
and Newport News Shipbuilding
companies and discuss bids.
Mr.. Yard testified he was be-
fore the committee only because
he was subpoenaed.
Knew Others Bids
The witness. after much
prompting, said each company
was familiar with the bids to be
submitted by its "so-called COM
petitors." Specifically, he ex-
planned, each ship yard told the
others what portion of impend-
ing navy work it desired.
Consequent to these discus
sions, Mr.. Yard said. the COM
pany would bid high on the work
it did not desire, and the out
come was invariably as expected
- L. AR
Shipbuilders.
Talked Over Bids
The three big Shipbuilding
plants formed an organization
called the National Association
of American Shipbuilders, and
kept in constant communication,
the witness said. Senator Clark
.(DD of Missouri asked:
"Were the members in more
or less constant contact in con-
nectiOn with bids?"
Mr.. Yard replied:
on have to say they were;
I'm under OATH"
Mr.. Yard parted several ques-
tions. Finally Senator Vanden-
berg (RD of Michigan insisted
upon an answer. He asked:
did New York Shipbuilding
confer with Bethlehem and New
port News in each instance in
advance of the bidding as to
what each wanted, as to what
each was to get and how the
bidding was to be done to bring
the net result?'
Was Consultation
Mr.. Yard said haltingly:
"I'll have to answer yes"
eff there is testimony that
there was no consultation be-
tween the New York Ship, Beth
lehem and Newport News, prior
to the 1888 naval contract let.
ting, then the testimony is in
COrrect?"
Mr.. Yard asked:
"You are forcing me to answer
that question:"
Mr.. Vanderbilt replied:
I certainly am
Then, to the best of my
knowledge, if there is such teSti-
mOny, IL is incorrect.
Senator Clark interrupted:
Then, previous witnesses are
not telling the truth?"
Mr.. Yard replied:
EITHER that, or they are Suf-
fering from mental paralysis"
Bids Discussed
Senator Clark asked:
Before New York Shipbuild-
ing bid on the 1894 naval pro-
gram do you know whether Mr..
BardO communicated with the
Bethlehem and Newport News
yards?"
Eyes"
"Did he discuss the bidS?"
Il believe they did-yes, /
know they did,
Before those bids were put
in?"
"Oh, yes"
did you ever hear him spe-
officially discussing what portion
of each contract each company
was going to have?"
THAT would be the impress
sion. 1t was very generally un-
derstoOd what each one was to
have"
Mr.. Yard added that Mr..
Bardo, after discussion of the
naval program with Naval Off
Gals, telephoned the heads of the
Bethlehem and Newport News
yards and related the substance
OF these discussions.
William M. Flock. chairman of
the board of New York Ship
building in 1927, told the COM
mittee he knew of no discussion
OF bids between the three big
companies. He added:
II don't believe there were
any SUCH"
BALL PLAYERS GUESTS
An entertainment for the mem
tAATc Nf fhn " NJ will la