Salt Lake Tribune | 1918-12-21 | Page 15 | No Criminality at Hog Island

i cmiiLin II H09ISUIND Investigators Fail to Find Fraud or Secret Profits. WASHINGTON, Lc-. C". The report of tii! oVpartmont of justice on thft pov-rrnmcnl's pov-rrnmcnl's re.iL 1-Joi; Island shipbuilding project ma!o public the White House today on wireP.ss instructions from Prowl-dent Prowl-dent Wilson, fuys searching investigation investiga-tion lias disclosed no criir.ina.1 liability, but recommends that a board of arbitration arbitra-tion determine what part, if any, of the more than JtJO.OOO.OOO the plant cost v.-as in exi.-f'FR of reasonable necessity. In brief tlif! investigator's report: Thru tii'-' fads do rot justify criminal process and that no fraud or Hec;rct profits pro-fits have bc"ii ostaWLihcd. That the prob;.bh: cost of the plant j v.-', I le about t -,iw0,(i'"'O (including $ii.-'.Mt $ii.-'.Mt for additions by order of Ilia v j'M.rg.i ncy J-'I'-et corporation l, compared with an original estimate of $21,OuO,OOU and a revised estimate of ;27,0uij,i)f)0; " That no clear explanation of this .dis- ere pa ncy has been forthcoming; That prior to February 1, last, a condition con-dition existed at Hog Island which ".superficially, at k-a.-U, would impress iMiwtne as an 'organ i?.e.d riot.' " That the contractor or agnf. tho American International corporation, in substanco lmn taken the position that since this was a war job cost was of ""minor importance, and That the question of reasonableness of the e.penditures should be referred to a l.oard of arbitration provided for in the contract, proceedings to be closed if tho board finds the expenditures reasonably necessary, or otherwise payment of the excess to bo demanded by the . government. govern-ment. The report also stated that the contract con-tract substantially was being complied with and that the controversy hinged "not so much upon the question of accomplishment, ac-complishment, but upon means, methods and expenditures." The department of justice investigation was made by two assistants of the attorney at-torney general G. Carroll Todd and Hark Hyman beginning last February. . "The most significant single fact Indicating Indi-cating the point of view at Hog Island, the report says, "was that bills for material, mate-rial, largely lumber, were prepaid and properly prepaid, to the extent of over $10,000,00", but no effort was made by the agent until our Investigation to prove whether prepaid bills were in fact followed fol-lowed by actual receipt of the material paid."