Jasper County Democrat, Volume 20, Number 92, Rensselaer, Jasper County, 16 February 1918 — VANDERLIP DEAL GOES UNDER QUIZ [ARTICLE]

VANDERLIP DEAL GOES UNDER QUIZ

President Directs Attorney General to Look Into the $42,000,000 Contracts. PLANNED BIGGEST SHIPYARD United States Governtpent to Determine If There Has Been Any Misuse of Government Funds—Senate Charges to Be Aired. Washington, Feb. 15. —President Wilson directed Attorney General Gregory to investigate the much-discussed Hog Island shipyard contracts, which have been adversely criticized before the senate commerce committee, and determine if there has been any criminal misuse of government funds. The president also directed the attorney general to work in conjunction with Chairman of the shipping board in his investigation. About $42,000,000 of government money has been involved in the Hog Island project, in which the American International corporation, headed by Frank A. Vanderlip, president of the National City bank, has figured. President’s Letter to Gregory. Here Is the letter President Wilson wrote to Attorney General Gregory, after Chairman Hurley explained the shipping situation: “Mr. Hurley of the shipping board has called my attention to some very serious facts which have recently been developed with regard to contracts made in connection with the shipbuilding program with tlie company tolerating at Hog island. “They are so serious, indeed, that I do not think that we can let them be taken care of merely by public disclosure and discussion. I would be very much obliged if you would have some trustworthy person in your department get into consultation with Mr. Hurley about tlie whole matter, with a view to instituting criminal process in case the facts justify it.” May Cancel Contract. Chairman Hurley of the shipping board has notified Assistant General Manager Bowles of tlie Emergency Fleet corporation that it may be necessary to cancel tlie American International corporation’s contract for building the government shipyard under construction at Hog Island, Pa. Investigation by the department of commerce was recommended by Chairman Hurley of the shipping board, who asked that an assistant to the attorney general be sent to Hog Island to work with Assistant General Manager Bowles of the Emergency Fleet corporation. Mr. Bowles was put in active charge of the yard recently. Mr. Bowles has been directed by Chairman Hurley to put the Hog Island yard on an economic basis. Shipping board officials are of the opinion that there has been nothing worse at Hog island than inefficient management and a reckless spending of funds, but they want to knojv all the facts. £ The Hog Island shipyard on the Delaware river, near Philadelphia; Is planned to be the greatest in the country, with more than fifty ways on which to lay down ships. The American International corporation, through its subsidiary corporation, the American International Shipbuilding company, has contracts for Its construction and for shipbuilding there from the Emergency Fleet corporation, acting for the United States shipping board. Testimony before the senate commerce committee, investigating the whole subject of shipping contracts, has developed statements that the government will be obliged- to spend between $40,000,000 and $50,000,000, where government and civilian experts estimated $21,000,000 would suffice. This testimony developed charges by .Representative -Lenmot (RepA, Wiscousin, on the floor of tlie house that through laxness in the letting of contracts the American International and its subsidiary were placed in position to loot the treasury of millions of dollars. It has developed among other things at the senate committee’s hearing that ■ Colonel Black of Philadelphia, one of the former owners of Hog island, got $2,000 an acre for his property, whereas a year ago he held an option on ■Hog Island at'sl,ooo an acre. One of the principal points of at- ■ tack on the International Shipbuilding I corporation in the senate committee’s 1 Investigation has been that by its contract witii the Emergency Fleet corporation it would receive a fee of $6,000,000 for tlie “know how’’ of building the shipyard and getting out the ships.