Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-11-10

that means
While many Of the government
ships are making a profit. the report
said, others are operating At loss,
and 1t was asserted that there were
many who believed that a final &C
counting of the operations of the ships
.woul0 show n serious loss on tho
gross tonnage operated"
After explaining that the cardinal
principle of successful ship opera
ton Is keep the propellers turning
and that every moment they are not
turning the ship IL losing money
for its owners, the report lays stress
On the fact that "manS Representa-
Board and those OF repair companies
10 not take this factor into con-
federation The result is very heavy
Toss to the United States shipping
Board"
It points out that many surveys
for repairs are merely superficial
and that the evil OF supplemental
contracts arises from such! such income In sne
method by which the dishonest repair
company can render the United states
I. ShippinS Board helpless and reap n
harvest of excess prohts-aliowins
1.-THE contractor to have a second, or
sseven a third, contract. at MS own
figures"
s. Connection Not Encouraged.
B. ~certainly it can be proved that
competition (for repair contracts) Is
mot encouraged by United States
shipping Board representatives, the
report says. ~ In
iterlockinx contracts. the report nnds
that cit becomes necessary 70 Erns
fod the gross earnings OF each 80
such a high percentage 10 cover eJSs
Itof repairs and upkeep as 10 iniAe
HI we'll nigh impossible for the leklt..
mate operator to realize any prom.
from the operation o! Ini'eo
Shipping Board boats
It interprets the interioch,nS 80,
ership and interlocking contracts 10
he in contravention OF the pshai
code. under the Jones shsppaHS act
1T saws that until some rstncu.N' ..
;tion is taken ''inte-iock'ns ewHe ,,
ships and interlockinS contTaSsS W.
continue to the detrinenf % Sss sae9
chant marine and loss 20 ise la1.S1
states Shipping Board
Emphasis is placed on re ,aSs
1 that "the purchase o. '',a;szsa3s ssE
/ construction and reHs.T WSTNS y
which cause loss TO the United states
| Shipping Board
/ How the shipping Board ess dos
bic loss saddled upon /, - tsas es-
planned: The sale OF 'nsse-aASs ~
the United States shipping Board sup
low as to net the hoard net more than
AK per cent of the original cost. al
though in many lines this Ta1sHaI
is higher now than 1t was NJ the time
of It's original purchase by the board
during the war. leads to the pracfi ce
Of repair companies hnying up this
material from the board al these re-
.duced prices and reSelliuC the same
material to the board for repairs to
Its ships at even higher than the pre-
Hailing market price
Overadvanees Of Millions.
Reviewing shipbuilding contracts
and settlements. the report charged
building plants" erected on lands
iDWned or leased by the contractor in
is'several cases were not properly
,safeguarded as to title.
raid the report, was that the United
States Shipping Board Emergency
Fleet Corporation found itself In po-
!sition OF owning a plant located on
privately owned sites and faced the
necessity Of giving away or selling
these plants for q small percentage
.of their original cost to the owner or
lessee of the sites"
The report also charged that in
Isems cases attorneys who represent
the contracts later engaged with the
Contractors az counsel ito assist them
in interpreting or in breaking or in
Attempting to break the contracts"
It also was alleged that some COM
pAnies to which the corporation had
'overadvAnced" many millions Of dol
lars "were unable to repay these
and that they were
permitted 'tal1 sorts Of exhorbitant
claims to absorb" them.
! Numerous cases were on record. the
report said, where doctors. veteri-
paxy surgeons. BARRIERS. dry goods
clerks and others Of similar fnept
calliugs, were placed ~ inspectors
over work Of construction Of both
Ol8ut0 and Shfp1"