The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-14

saying that Shanbron had not been
treated fairly
After an investigation OF the facts AIT
Kline said Representative Gallivan was
Informed that the bidding was fair and
that the award would be made as orig.
lnally planned.
Threat ny Ganivan.
The receipt Of this letter brought
sharp telegram from Representative Gall
Ivan. Mr. Kline said. in which he said
that as a Congressman he deserved bet
ter treatment. He threatened 10 take
the matter up on the floor Of Congress
and have his objections scattered broad
cast throu sh the Hearst newspapers
Mr.. Kline told the Walsh committee
that he had no doubt that the letter and
telegram from Representative Gallivan
had some influence in changing the atti-
tude of the shipping Board officials,
though he was not prepared to say that
this was the sole cause for the rejection
OF the Greenberg bid.
The first witness called yesterday was
Miss l.. Morehc use, treasurer of Bird
Archer & Co, dealers in chemicals. She
said she had been employed ir this ca
pacity for eighteen years. In 1918, she
said, her firm did a great deal of busi-
ness with the Shipping Board. She testi-
fled that various sums of money were
paid 70 Albert X. Waycott, one Of their
statesmen, which he in turn turned over
10 engineers and captains and other en-
ployees Of the Shipping Board as gratui-
ties. This item later was charged upon
the company's books for advertising"
The amounts ranged from IS to $50.
Mr. Waycott was the next witness.
He said that in 1918 he held the title Of
vice-president and general manager of
Bird. Archer & Co
when you secured orders from engi
neers and others. what did you do?'
asked Chairman Walsh.
Made Little Presents.
"wen sonnet mes would do a little
entertaining and sometimes give some
luncheons or little presents"
Asked if there was a fixed standard
for the payment of gratuities, Waycott
said that II had been customary 10 pay
IS on n ten gallon keg of chemicals and
$40 on a twenty gallon keg.
Mr.. Waycott said the custom of giving
gratuit es had existed for generations
and the employees on privately owned
ships received them. For the year 1918.
he said. his firm paid out $4,000 for
presents. His firm ceased TO do BUSH
ness with the Shipping Board when the
walsh GDillilNltc ONBetA ASS thNNSNi7eh
ton He insisted that the Shipping
Board was given wholesale prices at all
times and that II suffered no monetary
loss in the payment of these gratuiies
Don't you believe that the pr ncipe
is all wrong? asked Chairman Walsh.
YES" replied Waycott, but it is
simply a case of when in Rome do as
the Romans do "
Capt. James MacGregor. at one time
60 no Rnn r1
Savannah. Ga. Charleston. S. c., and
Wilmington. Del. said s principal criti-
cism of the handling o. shipping under
the Ship ng Boards direction lay in tie
fact that tonnage on Sh piping oEard
vessels was handled inefficiently. caus-
ing congestion at various ports. Repairs
were constantly being made % Shipping
Board vessels. he said. preventing their
arrival at their berths in time for load
ing.
Engineers Incompetent.
Capt. MacGregor said that in his
opinion the Shipping Board vessels re-
quired more repairs than vessels owned
by private concerns. There were many
incompetent engineers.. he 50 d, who did
not remain on any one ship long enough
to become familiar with. the machinery.
still" asked Chairman Walsh. "if
rle board had waited until Il engaged
competent men we never would have
been able to operate the tleet Ism that
true?"
1T s." said the witness.
Capt MacGresor said that prices made
to the Shipping Board for supplies, re-
pairs and towing were much higher than
those given to companies who owned
their ships In many ports he said,
there was no competition betw cen tug
boat companies, and the shipping Board
was forced 10 pay eXorDitant rates
A quantity of rosin, acco ding TO Capt.
MacCre was billed for Havana, bat
was carried on long excursion TO South
American ports, back 70 New York and
Bait more and finally was disposed OF In
Jacksonville Fla. The consignee IN Ha-
vana made claim against the Ssipping
Board, which was paid. This one in /
cident cost the Government $4,000
skipper Was Dismissed.
The captain Of the vessel carrying the I
rosin was dism ssed. Capt. MaciIegor /
said. not because of his failure to carry I
out instructions on the rosin shipment 1
but because he had approved a $4,000 I
overcharge on a repair bill az Buenos I
Aires.
While most Of the Instances cited by .
Capt Mac regor and tho OF er witnesses 4
involved petty graft and minor " es.
they are regarded rs sew re Indictment
against the business methods Used by the .
Shipping Board even after the aimistice
had been signed and the emergency had
passed. After sitting out the mass Of
charges which have come In from one
source and another. the walsh committee
intends 20 make recomm n ations leo
ing toward the estab ishment Of a mer-
chant marine In which abuses and losses
will be eliminated as completely as Is
humanity possible.
SO far the charges made IN the report
submitted by A. VI. Els or and John r.
Richardson the investigators employed
by the Walsh. committee. have been
borne out In the testimony.
The hearing win be resumed at 80
O'Clock tomorrow morning.
REVOLT FAILS IN PERU;
LEADERS ARE SEIZED
Three Colonies Are Held;
Two Justices Released.