Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1920-11-11


Press)-Corruption of employees and Of
ticlals of the Shipping Board Emergency
Fleet Corporation, graft in purchasing
supplies Tor and In repairing government
owned merchant ships and the use of
political and other influence in obtaining
contracts for ship construction and the
ALLEGATION of completed vessels to oper-
atinS companies are among a maze of
charges made In a report submitted to
the House committee on Shipping Board
operations by A. NJ. Fisher and J. +.
Richardson, former employees Of the
board.
Chairman Benson of the Shipping Board
refused tonight to discuss the report
declaring that any attempt he might
have to make would be made to the House
committee which now Is continuing its
investigation of the boards operations.
The report was made public tonight by
the committee Of which Represe ntative
Walsh. Republican, Massa chusetts. is
chairman. 1t covers more than 100 print
cd pages and deals exhaustivcly with
many phases of Shipping Board opera
tons as observed by the committees in
vestigators over a period of more than
a year.
Mr.. Fisher, who formerly was connec-
ted with the federal trade commission,
made a survey for the Shipping Board as
to record keeping systems in the office
| of the lumber administration. Mr.. Rich
ardson, for % years a newspaper man.
wes employed for several years in the
boards department of Investigation.
SOME SUBJECTS UNTOUCHED
! In presenting the report, Mr.. Rich
ardson said 1t was designed to deal
with problems which could be solved
wholly by the Shipping Board itself
and left untouched" fourteen general
subjects in connection with the boards
operations. Among these We're enumer-
ated organization of the board. tech
nical errors in the construction pro-
gram. German American deals. assump-
ton of diplomatic functions by board
officials, enforcement of the new mer-
chant marine act and evasions of the
selectivc service act
Taking up in detail several general
phases of the boards activities the re-
port charged gross waste OF govern
ment funds. Improperly drawn con-
tracts which cost the government
large sums and failure of the various
divisions Of the board TO cooperate
efficiently and the almost complete
failure of some of the divisions to
function properly.
MILLIONS OF DOLLARS LOST
Padding of payrolls by firms re-
pairing shipping board vessels, owner
ship of companies operating govern
ment vessels of stock in companies
furnishing supplies to those craft at
1 prices ranging anywhere from 40 to
| so per cent above wholesale costs
wholesale theft Of supplies and equip
ment from ships and the loss OF mil
lions of dollars through improperly
secured loans made to contractors
building government vessels also wore
charged.
The Investigators alleged that in
some cases the fleet corporation
loaned money to contractors and ac-
cepted as security bonds issued b!
companies Incorporated by the con,
tractors (which bonds have since beer
found to he worthless" The charge
also was made that in many cases
shipbuilding plants with materials
(Which are going concerns are turned
back to contractors as salvage PROPOSE
tions and the contractors thus reaI
large profits at the expense of th'
fleet corporation"
HOW FIRMS GRATED
Another allegation in the report wa
that many firms holding construction
contracts inaugurated Liberty bone
selling crusades in their plants an'
charged to ship construction ten pc
cent of the money thus secured as tn
, cost for selling the bonds 1t was fur
ther charged that in some cases tn
, Fleet Corporation authorized con
tractors to take from their appro
priated funds" sums 20 purchas
Liberty bonds and that subsequently !,
some cases these bonds >erc sold c
, hypothecated at a loss and the none
, thus realized used for plant pur
poses"
They the contractors) ther put 1
n claim against the United States Ship
!, ping Board Emergency Fleet Corpora
I tion for losses thus incurred" de
I clared the report.
! Going into the matter of salvage o
shipbuilding plants, uncompleted hull
, and material and stores. the report al
legged that IT was asserted by person
in position to know" that the sale Q
the millions of dollars worth G
r. materials owned by the fleet corpora
tion had netted no more than * l.
cents on the dollar at time when tn
shipping board at other points wa
purchasing the same materials in tn
open market at prices in advance {
| terials sold
q CHIEFLY MALADMINISTRATI
= However" said the report. 1.-The ques
# ton seems to be one of maladministrs
c ton, rather than one of fundament
= conditions. insofar as the limited return
II from the sale of these materials is col
cerned."
y The report said that THE Bardee cohI
IS pany' was trying to pure hase under
N blanket contract all supplies and store
OF the Fleet Corporation and charge
that one of the officials OF this compar
was "also an advisor to the ShippiT
n Boards cancellation and Claims Board.
= The Shipping Board announced la
~ night sale of surplus material on Il
n Pacific coast valued at about $l5,OU.o
n to "Bardee Brothers, Inc.." of Ne
I York
e PROFITS FOR GEORGE r. ROGEI
e AS to building contract cancellation
n and hull removals. the report assert'
Gtt tvtn