Evening star., 1943-03-24
Justice Department Studies
Defective Steel Plate Case
Informer's Suit to Recover Government
Losses Is Filed in Pittsburgh
b. The Associated Press

b. he Associated Press.
The Justice Department War
Frauds Unit has begun to look
into the story Of defective steel
plates turned out by the Car
negle-Illinois Steel Corp. plant at
Irwin, Pa, an official said today.
An observer for the unit has at
tended hearings being conducted by
the Truman Committee. and ar
rangements have been made to OBJ
tain the companys records. the
official said. He added that the
department intends to develop" the
case.
At the same time. Herman L.
Cogan, Chicago. filed in Federal
Court at Pittsburgh an infOrmer's
damage suit to recover losses he said
were suffered by the Government in
buying more than $1,000, 900 worth of
steel.
Named defendants were Carnegie
Illinois and eight employees whose
names came up at the committees
hearing. Mr.. Cogan sought $4,000
from each of the defendants. in
addition to double the amount of
damages he said the Government
suffered.
In Chicago, where he filed a suit
identical with the action in Pitts
burgh, Mr.. Cogan identified himself
as private citizen who has been
practlclng law for II years. He said
he filed the suit because my pa
trlotiSm was aroused"
Meanwhile, the Senate War IN
vestlgating Committee looked to the
War Production Board and the
United States Steel Corp. to ferret
out those responsible for delivery of
subStandard steel plates to the Gov
ernment from the plant at Irwin.
Chairman Truman declared the
highest responsibility for fake
tests" as a result of which he said
approximately 5 per cent of last
years steel plate shipments were be-
low Navy, leaselend and Maritime
Commission specifications, must be
found and this mess cleaned up"
Employe witnesses, through letter
and direct testimony, told the COM
mlttee yesterday that:
They were instructed by J. H. Nc
Connell and D. B. Ireland, inspectors
in the metallurgical. division, to
fake tensile tests by pulling up
their actual values to meet specifica-
tions.
They changed analysis reports to
show the falsifled records of specifi-
cations.
Badly laminated and piped plates
were shipped to the Government.
Senator Truman laid immediate
responsibility for the fakes on w. F..
Mccarthy, chief metallurgiSt. and
asserted Mr.. Mccarthy was warned
at two committee hearings "he could
be held criminally liable"
A statement from George E. DYE.
supervisor of inspection, read into
the record, quoted Mr.. Mcconnell
as telling him Mr.. Mccarthy once
got his ears beat back" at an oper-
ating meeting when he announced
he had told Mr.. Dye to start reject
ing all the bad plates.
Mr.. Mccarthy told the committee
for the fakes rested
with his department.
B. F. Fairless, president of United
States Steel, testified he was no less
shocked than the committee at the
revelations, and added:
Whoever is responsible, under
ling, intermediate or top, will have
to walk the plank"
Senator Truman repeatedly told
]. Lester Perry, president Of Carne-
gle Illinois, United States Steel sub
sidiary, that he had spent more
time attempting to justify what
had happened than trying to see
how high up knowledge of this prac-
tice went"
Mr. Perry denied this and said he
was suspending a number of people
and that he would clean house to
see that there would be no repititiOn
of the tragic" occurrences
His only explanation for failure
to carry out prescribed tests. he
said, was that " a few individuals
responsible for the making of tests.
having an intimate knowledge of
the high character of the steel and
honestly believing that the plates in
question would fully meet all re-