New-York tribune., 1920-11-11
Hurley and Payne Also TO
Face Walsh Committees
BensonSays He 'sReady;
Politics Enters Scandal
s2S5,0o0 Slnipyard
Sold for $4,000
Ship ALLEGATIONS to s'Wass
Baby" Firms and S&
wage Cause MiIlionsix

Rear Admiral William S. Bensca-
chairman of the United States Shi-
ping Board, and other high official.
Of the board will be called to appeas
before the Congressional committee
now holding an inquiry in this city
into charges of graft, corruption.
waste and ineficiency in the admin
istration Of the board. Joseph
Walsh, United States Representa-
tive from Massachusetts,, chairman
Of the committee, announced this
last night following the receipt Of
telegram from Admiral Benson.
In addition to Admiral Benson
ard other officials the committee also
Will call E. N. Hurley and John
Barton Payne, former chairmen Of
the Shipping Board, and Charles NJ.
Schwab and Charles f. Piez, former
directors OF the Fleet Corporation.
Benson Offers Records
All of these men will be asked to
testify with regard to the report
submitted to the committee by A. NJ
Fisher and ]. +. Richardson, as the
result of an exhaustive invostiga-
tion Of the operations of the Ship
ping Board containing the afore-
mentioned charges.
Mr.. Walsh last night received the fol-
lowing telegram from Admiral Ben
son:
Your telegram just received. The
Shipping Board has no objection what.
ever TO your hearing Commander A. B.
Clements to day. Records, officials and
employees of the board are at your dis
posal at any time or place you may
desire"
Commander Clements. who is execu-
tive assistant to Admiral Benson. was
present at the hearing yesterday, but
did not take the stand. lie will be a
witness to-day in an effort to reply to
the testimony of Mr. Richardson. who
again occupied the stand all day yes
terday, celebrating upon the charges
contained in his report.
Mr. Richardson's testimony dealt with
the alleged use of political influence in
the ALLEGATION of ships and other affairs
OF the board, the sale OF materials at
prices far below value, laxity in fnan-
cla dealings between the board and ship
operators and inefficient methods in
the keeping Of vital records.
Ships AlIocated to War Babies"
Mr.. Richardson charged that indi-
viduals and corporations of no financial
standing whatever. and having no ex-
lerience in the running and operation
Of ships, have had vessels allocated to
them by the Shipping Board for opera
tion in a manner threatening the en-
tire structure of the American mer-
chant marine and entailing losses Of
considerable dimensions to the govern
ment.
The witness charged that, while new
ly formed corporatlons-"w babies"
as they were called by Shipping Board
oficials-were allocated vessels, old
companies of high financial and bust
ness standing were unable to obtain
ships, and, in certain cases, had their
own ships commandeered and trans
ferred for operation to the various
mushroom organizations which had
sprung up during the war with the pur-
pose Of reaping profits out OF the needs
of the country.
He added that ships had been turned
over to companies in which relatives OF
n-en connected with the Shipping Board
were financially interested.
The witness CHARGED that no proper
care was exercised in the Investigation
Of the financial standing and ability of
..or fc kct
companies which had purchased yes
sells from the board outright had COM
planned that they cannot compete with
companies financed and equipped by the
Shipping Board.
Among the companies named by the
witness which had their ships taken
away from them and transferred to new
mushroom lines were the Luckenbach
and Robert Dollar lines. The Elwell g.
ones line, an old established organiza-
tion, Mr. Richardson said. was among
those which had great difficulty in OBJ
tanning vessels. New companies which
Jared well under ALLEGATION Of vessels.
he asserted, were the American Ship
ping Corporation. the Jacksonville Ship
ping Corporation, the South Atlantic
Charterlng Company, the Kingsley Com
pany OF New York and numerous others.
Board Must Cover Losses
Many Of the new companies. Mr..
Richardson said have been opel lating
under loss. These losses the Shipping
board is obliged by contract to cover,
he declared, and no effort is being made
by the board 20 withdraw the vessels
to these concerns.
The statement has been made" said
Mr.. Richardson, that out of two hun
dred companies to which ships have
been alIocated there are so many ir-
responsible concerns that the list must
be cut in half before the division of
operations of the United States Ship
ping Board could successfully operate
ships"
Mr.. Richardson declared that one of
the gravest defects in the methods of
the Shipping Board was the lack of for
elgn agents for the solicitation of car
goes, permitting gross neglect on the
part of operators in obtaining business
for the ships allocated to them and. on
occasions compelling supercargoes on
the boards vessels to go out and solicit
cargoes. so that vessels should not be
compelled to return home in ballast.
The witness criticized SEVERELY the fail
ure to establish reciprocal working