Amarillo daily news. [volume] (Amarillo, Tex.) 19??-current, 1920-11-10
Covers Many Pages.

'WNfth NMft9 aMNNt
n covers more than 100 printed pages
and deals exhausilvely with many
phnses nf shipping board operations M
observed by the committees investiga.
tlon over a period of more than year
ago
Mr. Fisher. who formerly was con.
nectcd with the federal trade commits
sion. made a survey for the ahlppling
board ~ tO record keeping systems In
the office ~ the lumber admlnistra-
tlOn.
Mr. Richardson. for twenty years a
newspaper man. was employed for sew
eral years In the boards department
of investigation In presenting the e.
port. Mr.. Fisher explained that II was
designed 10 deal only with problems
which could he solved by the shipping
board Itself and left untouched' four.
teen general subjects Including the
boards operations.
Among these were enumerated or
glni,ation uf the beard, technical err
rurH la the construction program. Ger
man American deals, assumption ~ tha
diplomatic functions by board officials.
enforcement uf the new merchant ma
rnc act and cvaslons of the selective
service net
Waste of Funds.
Taking up In detail seven general
phases of the boards activities. the ~.
poft charged gross waste of s0-Ssss-
men funds improperly drawn cor.
tracts which cost the government large
sums. and failure uf the various divi.
slons of the bonrl 10 cooperate eff
clently aud the almost complete failure
II some of the divisions Ia function
property.
Padding of payrolis by firms repair.
ing shipping board vessels. by COM
nnnics operating government vessels pf
Hock In companlcs furnishing supplies
to those crafts nj prices ranging from
~ to 20 per cent over wholesale costs.
wholesale theft of supplies and equir-
mrnt from ships and the loss ~
millions ~ dollars through improperly
secured luans made Ia contractors
building government vessels also were
charged.
The investigators alleged that IN
some eases the Fleet Corporation
loaned money 10 contractors and nc.
cepied MS securitv bonds issued by com.
pnnies Incorporated by the contractors
which honds have since been found TO
BE- worthless"
Salvage Propositions.
The charge also wRa made that n
many eases shlpbuilding plants win
materials (which are going concernF.
are turned hack to contractors M saiv.
iEu propositions and the contractors
'hus renn large profits nj the expense
II the Fleet Corporation"
Another allegation IN the report wnl
that many of the firms holding con.
rncts IN Liberty bond selling crusadca
In their plans had charged to ship con-
rructinn 10 per cent II the money thus
secured as the cost for selling the
lunds u was further charged that
n sonc eases the Fleet Corporation
authorized contractors to take from
their appropriated funds" sums {"
%" hsa' Liberty bonds and that stih-
s"qucntlv in some cases these bonds
we're sold or hypothecated NJ n loss and
The money thus realized used FOR plant
purposes"
"Thoy Uhc coniractorsl then put IN n
claim against the United States Ship
ming Board Emergency Fleet Corpora.
ton for the lnsrcs thus Incurred" the
report declared
Melted Small Sum.
Going into the matter of salvage of
hiphuiliing plants uncompleted huils
'iIN fNNIfNANA anu NNfAfNi wv NtiNIN Nv
legged that u WIS asserted by persoug
N position o. know" that the sale of
the millions ~ dollars worth q ma.
frriais" owned by the Fleet Corpora.
fiu- had ustt,d no more than 10 :
cents on the dollar NJ a time when tho
shipuiuC hoard "a other points was
uurl hlsinr the same materials In tho
lp,G market ~ prices IN advance cf
tho original cost prices of the materials
sii
However" the report said. 'the
pueefi0n ss.ms o. he ane ~ maladmin.
stratinu. rather thar one ~ fundA.
mental conditions insofar ne the lin
fsd returns from the sale ~ these ma.
frfiHis BE- concerned
The REPORT slid that the BARD COM
many" WIS irving o. pufchnse under
y blanket contract all supplies AMI
stores ~ the fleet Corporation. ana
charged that one II the officials 4
this company wus also "an adviser q
thr shipping boards cancellation ant
claims hoard"
sells surplus Material
Tie shipping hoard announced last
rirhf ih. sale 81 surplus material On
fha Pacific Coast valued NJ about SIS.
ooo ooo % "Iarlo BROTHERS. lnc.." q
NeW York.
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