The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1919-08-30
SPONSORS jewels
CHARGED TO UNCLE
SAM, SAYS WITNESS

Diamond brooches, jeweIed
wrist watches and iavailieres
were bestowed upon sponsors OF
ships launched In Seattle. and
the bill charged to Uncle Sam
during the height OF the war.
when national thrift was the cry
from coast To coast. according
to testimony placed before the
congressional INVESTIGATOR here.
Members OF the commission made
a physical inspection Of the ss -or.
phaned' hulls In Lake Union Satur.
day morning. The huils. anchored
In Lake Union from periods Of a
year ago 20 within the last month.
represent an outlay OF $50. 100000.
Some OF the hulis are known TO he
defective. while others arc In process
of sale at figure much lower than
the emergency fleet corporation paid
for them.
Altho IL was generally believed
that shipyard operators bestowed the
costly gifts to sponsors at launch
ing ceremonies. @. +. Deane. district
comptroller OF the emergency fleet
corporation. informed the investigat.
ors 10 the contrary. when he took
the stand Friday
He declared that the shipyard peo.
pie had first been permitted To spend
1880 for launching ceremonies. and
charge II up to the government. but
that the allowance was later cut TO
$500 a launching.
Twenty launchings cost the gov
ernment $4,000. It was brought out
Many OF the sponsors OF ships were
wives of officials but In some cases
they were girl stenographers.
Gave Away Autos
The steel shipbuilders' association
assessed each member and pur-
chased a high.power automobile for
Capt John i. Blain. when he re-
signed as district manager of the
Emergency Fleet Corporation,
Dcane declared.
Not to be outdone the wood ship
builders assessed their membership
and purchased high-power auto
mobile for Capt. W. A. Magee. an
Emergency Fleet corporation officer.
when he left the government
service.
Every wood shipbuilder chipped in
to make the Magee purchase--ex.
cept the Meacham & Babcock Ship
building Co. A notice OF assessment
was sent TO that firm but the mem.
bers did not feel like donating TO
the Magee automobile fund. consid.
ering the fact that the firm had been
thrown into the hands OF n receiver
because of the refusal of the
Emergency Fleet corporation to ad-
vance moneys on wood extras.
IL was brought out during Deane's
testimony that s2064. 900 in bonuses
had been paid to the Skinner a Eddy
Corporation alone during the war.
This sum represented something
over sS5,000 for every ship which
was sent down the ways. The Grays
Harbor Motorship Corporation of
Aberdeen did not fare so well. 1t
having dragged down only si22.90o
in bonuses.
Two Closed Sessions
TWO executive sessions FRIDAY or
the congressional hearing. To which
United states District Attorney Rob
ert c. Saunders and Joseph IL. New
berger. assistant cashier OF the Sc
attic National Bank were sum
moned. led observers to believe that
the investigators may have uncov-
cred sensational evidence affecting
the Emergency Fleet corporation
program.
After passing nearly nm hour with
the investigators behind locked
doors District Attorney Saunders
FASTENED TO his office He refused
to discuss his conference with the
investigators.
Nor would any member of the
Indicate the character of
testimony offered by the district at
torney.
Newbergcr's conference with the
investigators was brief. While
neither Newberger nor the commit
tee members would discuss the sig.
nificance of the bank cashiers tcsti-
mony. II Is said that Newberger
merely informed the committee as
to the method of distribution of ship.