The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1920-11-18
DISCLOSURES
ARE STARTLING
Complete Breakdown In Ac-
counting System Of the
U. S. Shipping Board

New York. Nov. IA series oE
startling disclosures tending TO support
what he declared to be complete lack
OF adequate accounting system in the
handling Of government funds was
made here today by Martin ]. Gilien. a
witness before the Walsh congress
sIonal committee investigating the ar
fairs OF the United States shipping
board Gillen was special assistant
TO former Chairman John Barton Payne.
Appealed to Harding.
The name OF President-elect Harding
was brought into the record when Gilt
len said ne had informed Senator Hard
ing that II was the duty OF congress TO
see that only big men capable OF han
ding affairs entrusted TO them be ap-
pointed TO all departments. He said
appointments should be confirmed by
the senate only when 1t 10 determined
th"t tne men named are capable and
efficient.
1t has been conceded" he said. that
but few men connected with the emer-
gency feet corporation had an expert
knowledge Of accounting" and he also
said that II was due TO a complete
breakdown Of the accounting system
that the board had its main troubles.
Sensational InsRieisney.
Figures used today by the witness
ran into billions Of dollars. He testi-
fed that one of the first acts Of Chair
man Payne when he discovered the con-
dtion OF affairs was to 20 TO the secre-
tary OF the treasury and secure from
him the services OF Alonzo Tweedale.
whom ne made treasurer OF the board.
This was done about August !. 1919, and
he testified that among other conditions
disclosed by the new treasurer were the
following:
There was no. balance sheet showing
, what funds the bSafd possessed or IN
funds vera deDOSiteu.
There was no record in the hands OF
the board OF securities valued at more
than $240, 100000 which the board held.
The securities, he added. were found In
the vaults Of trust company In Phila-
delphia. where they had been placed for
There was no record showing In de-
tail how $2.5a0, 900. 900 had been ex-
pended up TO that time.
There was no record OF accounting
with operators Of Shipping Board yes
sells nor no way OF determining how
much money belonging TO the govern
msnt they had in their possession: posses o..
dale, he said. the treasurer OF the
board was only "an issuer Of checks, y
ott-times without supporting claim
vouchers.
Finances Badly 1Cixsd.
On November II this year. the wit
ness said, Of the sum Of $3.So0. 900. 900
expended there had been submitted TO
the treasurer vouchers 10 cover oniy
$2,7o6, 900, 900. Vouchers representing
disf ursements OF 5000. .000. 900 had been
excepted to" by the treasurer because
OF lack Of sufficient supporting data,
and there was yet to be presented
vouchers amounting to Sl,l0o.Ooo, ,oO0:
Vouchers and data to make possihle e
the accounting. he testified, have been
obtained by going out into the field,
starting with bank accounts OF Vari-
GUS firms and persons wlth %hom tae
board and the Emergency Fleet Cor
poration had transactions, and tracing
the accounts back to the board. In
his work. he said. a force or 500 men
had been engaged. ~
In summing up his evidence. Gillen
said the Shipping Board had gone out
and obtained the best possible men to
handle its ship construction and IN
operating divisions but II had failed
TO get q man big enough to establish
and carry out a department efficient
accounting.