The Birmingham age-herald., 1920-11-10
SUBMITTED IN EVIDENCE


 made public in Washington, charging corruption of employees and officials of the shipping board was submitted in evidence here late today at hearing before the congressional committee in vestigating affairs of the shipping board Afterwards oit was supplemented by Afterwards it was supplemented bv Fisher, secretary and statistician of the | committee, and his assistant, J. F. Rich- ardson, who made the report after years investigation
 MT. Richardson testified that there pre- vailed generally a system of commits sions or gratuities to officers for supplies purchased, paid by the persons who sold the goods. This practice he declared had been reduced greatly by private com panles by means of auditing and check ing until now it was only about one per cent of what prevailed on shipping board vessels. So general had the prac- tlce become on shipping board steamers, he asserted, that private companies were complaining because they could not get stewards due to the graft on ship ping board vessels"
 He asserted there had been some cases or prosecution and conviction of ship en- ployes charged with grating, but not enough to make it a dangerous practice. at least than one-fourth of the cases pre- sented had been carried to prosecution
 
 instances of waste included:
 Lack of safeguards against theft of supplies.
 Lack of system of standardizing expen- ditures. practice of granting rebates and failure purchase of equipment and raiiure tolsupport charges made by the shipping boards supercargoes
 MT. Richardson testified that he had found in one instance that supplies sold for shipping board vessels had been paid Tor at fifty per cent higher than the market wholesale rate. Another instance noted by the witness was where sl1000 in gratuities was charged to the board. but this sum later was returned
 THREW SUPPLIES OVERROARD
 He told of one steward who bought supplies for twelve-day voyage, and when he quit at the end of five days another steward threw the first supplies overheard and repurchased the same amount 'in order to get his commission He told of purchase of grape fruit knives at $50 each for ships crew; wooden lemon squeezer at 8 and Strawberries at 60 cents a quart for another crew: purchased he said, on he threat that if the berries were not obtained in two hours the crew would walk out" These supplies he added, were charged to the shipping board ac- count.
 AS VieiiOSS duutu that unOer the pres mt system of accounting between the shipping board and operators of it's ships here was no way of telling just how much money belonging to the board was LOW in the hands of the operators The mount. he said, was anywhere from N25,0 900 to sl50 0o0,00O. The conditions, le charged to failure of prompt check ng and accounting of vessels in hands f operators and to lack of co-opera- or between the general office and the 'arious districts from ships were handled re added that subsidiary organizations operating committees for towing tevedoring, supplies, water and repairs ,ade possible excessive charges He as- 'erted. moreoker, that supplies were mrchased by operators at sums exceeds ,g the market prices. and charged to he account of the shipping board He so alleged there was no system of Aeeking purchases.
 Mir. Fisher alleged general and specific stances of excess profits in repairs and instruction. This was made possible, he d. by lack of proper inspection, audit and accounting. Failure to cooperate various departments of the board also s held responsible by the witness, who