New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-04-23
u. s. Paid Rent
For. Ships That
Were Not Used
Clyde and Mallory Lines
Got Million From, Board
ON Which Sat Companies
Officials, 1t Is Charged
Claim $780, 59 More
Effort Made to Bar Facts
Introduced at Hearing
Before I. C. C.. Referees

From The Tribune's Washington Bureau
1. WASHINGTON, April o. Large
sums of money in charter rentals were
paid by the United States Shipping
Board to the Clyoe and Mallory Steam
ship lines for vessels thai never per-
formed a days work in the service
+. of the government, according to evil
dence submitted to-day by counsel for
the Merchants and Miners Transpor-
4. tation Company OF Baltimore before
hoard of-referees of tho Interstate
Commerce Commission. The proceed
ings were for the recovery of S1,220,000
compensation claimed by the Baltimore
company from the United States Rail-
road Administration.
The sums paid the other two lines
for SHIPS that were not used here were
said to total S1,122,734. They claim,
in addition, s1,206 ,459.61.
During the time that these sums
are alleged to have been paid Edward
N. Hurley was chairman of the Ship
ping Board; II. II. Raymond president
Of the Clyde and Mallory lines, was
member OF the Shipping Boards ad
visory committee. and Clifford Mallory
was assistant director Of operations of
the board
The evidenced was in the form Of ex-
hibits offered by Otis B. Kent, general
counsel of the Merchants and Miners
Company, for the purpose of contrast
ing the claim of the Baltimore Shipping
Company with tn sums paid the rival
coastwise lines by the Shipping Board,
and was prepared and certified to from
the records of the Shipping Board.
g Mr.. Kent was careful to explain that
he Intended no criticism of the boards
action, but the submss ion of the ex-
\. L 4 IL s..Lz IL
ord created sensation in the hearing
room. Counsel for the Director Cen
eral of Railroad Admi nistration OBJ
jected strcnuously to their introduction
on technical grounds, and after hear
ing the exhibits read by MIR. Kent the
referees sustained the objection, with
the understanding, however, that the
evidence and daSa might be submitted
to the Court of Claims in the event
that the Merchants and Miners case.
assis likely. goes to that tribunal.
- 1t was shown by the exhibits that
The CLYDE and Mallory lines, along with
sether coastwise shipping, were requisi-
ssioned by the Shipping Board on Octo-
sker 10, 1917. Ten Of the vessels of the
CLYDE Line and eight of the Mallory
1ine, however, being under $500 tons
mach, were found unavailable for over
seas war service. The Shipping Board
Aecords showed that these vessels were
sicft in the service of their owners
Miough nomirally under reQuisition by
e he government.
= ON December %, 1917, the Shipping
BOARD adopted resolution, copy of
"a ch was included in the exhibits Of
Z bred. directing that these vessels be
marned back to their owners and re-
Minquished from requisition. In spite
spf this resolution. which appears never
40 have been rescinded the officials OF
The Shipping Board never actually re-
asinquished the nominal requ sition un-
"a more than three months later, whel
sahev were transferred to the railroad
y administration.
s. IN that period, from October is, 1917
20 April IL. 1918, the Shipping BoarC
gal the Clyde line for its ten vessel
an charter rentals 1867 .5O0s and the
~ DRY line, Dor its eight vessels, S555.-
ez3A12. or a total TO the two companies
sTor these eighteen vessels. of 81 1872 ,734
I'm addition and for the same period
sthese companies have submitted unpait
ssels, OF S1,206, 1891. In other words
Ahe totai amount paid and claimed un
ger this nominal requisition for the 81,
3nonths period, aggregates 50 329 1886
: Contrasted with this, the claim o
She Merchants and Miners compan
against the Railroad Administratio
sfor actual use and control by the Di
rector General for period OF approx
sfnately TWEEN ty-three months of fou,
ssteen steamships of approximately tn
Same tonnage as the Clyde and Mallor
sbarges and terminal properties of a
ESTIMATED value of approximate
$4,000 900, is S1,219,828.1O.
= The introduction of the exhibits b