Evening journal., 1920-11-20
SHIPS DEFECTS
HIDBY PAINT
Edgar F. Luckenbach Dis
gusted With the Board,
He Declares

NEW YORK, Nov. 2O.-It now Is
costing the United States government
$4,000 a day more to feed the 10000
men on Shipping Board VESSELS under
the cxinstlng system OF purchase OF
supplies than it did during the war
before the ships Were allocated. r. II.
Gregory, the boards port stward in
the North Atlantic district, testified
yesterday before he congressional
committee investigating the boards
affairs.
Gregory said that during the war
all supplies wire purchased direct by
the board. Now, each operator pT-
chases the supplies and "the bills are
paid by the government"
He estimated that the basic rate
per man per day now Is about 81 p.
During he war when the board was
operating all its ships, the estimated
basic rate was SO cents.
In New York alOne, he added, there
are so purchasing agents for as many
operators Of Shipping Board vessels.
They are bidding against each other
for ship supplies-and the govern
ment eventually pays the bill.
The Navy Department. he said, feeds
its service on an average of less than
80 cents per man per day. After, he
said, he could not tell who was re-
spOnSlble for the existing system, "
Representative Kelly marked.
1T is quite possible this committee
will find out"
Gregory also testified that the Ship
ping Board gave its sailors a gr ater
variety Of food than was servld on
men-of-war. He was asked If there
were any complaints from the sailors.
Some OF the mfn on. Shipping
Board freighters would kick II you
gave them turkey three times day.
he replied.
Edgar f. Luckenbach. OF the "Luck-
enbach Line" who said That during
the war his entire feet Of IS steam
ships. totaling 2i3OO0 tons, was com
Wandered, said his company mad
bought from the Shipping Board
S22 100000 worth Of Vess ls-"mure
than any other operator has bought. "
Many OF the ships he purchased
from the board, which he character
lied as the slipping board" were
faulty in construction, with "leaky
rivats, leaky decks and so forth. "
More than 80 per cent. OF them. he
said, had 10 be drydocked for repairs.
Improper Inspection was % blame
for the faculty Shipbuilding, he added,
~ lAnA lAAt1 AliaA OnA NNAh ~ a AAAAAI
Der of cases was covered by paint. "
Mr.. LlIckenbach said his account
with the board had not yet been SET
tied; that he still had some money
belonging to the board, and the board
owed him money.
Mr.. Luckenbaoh said that he pur-
chased back from the Shipping Board
eight vessels which had been COM
mandeered by the board in 1917 when
they were s. per cent. completed,
only 10 find he was charged in excess
Of SO, ,792 .2i6-''run up in over charges
and estimates under the oost-plus
plan.
In the two years since he repur-
chased the ships he has been unabtl
TO procure an accounting Of the al
legged overcharges, he said, adding
that he had asCertained that he had
contributed as follows in part Of these
alleged charges:
zone thousand dollars toward a base
ball team; $1,000 toward a nehghbor-
hood society; selling Of Liberty bonds
and moving expenses Of officials. "
Mr. .LuokenbaOh said he become dis
glsted with the way American ship
ping firms were trtated by the board
and had asked permission to put his
vessels under a foreign flag. so that
I he could get consideration as a 10r-
eign owner when HE went TO the
board.
He said that men who had pur-
chased even rowboat seemed 30 be
the boards favored OPERATORS, adding
that fully 50 per cent. OF the Ship
ping Board operators in New I"rl
were inexperienced.
Mr.. Lucknbach testhnd that mis-
company had always been am Ameri-
years ago.
For one of the Luckenbach ships
the government paid Sli3S7 IN
charter hire, which earned for the
government S356,0OO. Mr.. Luokenbach
said, adding that another Luckenbac1
steamer. for which a charter fee Oh
1877, ,7Si was paid, earned for the gov
ernment a profit OF si.t59O24. This
Mr.. Luckenbach said was ''prolteer-
| ing bv the government.