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

I
terms of the operation agreements he Is
/ without power either TO supervise the
| purchase of supplies or The handling OF
! 4 vessel.
| Opera tors who run their own ships,
the witness said. usually send the Gov
eminent ships on the least profitable
routes. knowing that although the Gov
eminent shared In the profits II was also
required to pay all of the losses No
employees were retained In foreign
ports he said. and to this he largely
attributed the fact that ships frequently
return In ballast from ports where car
goes are going begging.
Mr.. Richardson cited the case OF
Strahan & Co. OF Savannah. which had
many cargoes but few ships, while
neighbor concerns had Government
ships lying idle for want of freight lie
! declared that no effort was made TO
equalize this condition
Needless Board Created.
One of the points discussed by Mr.
Richardson AZ, the morning session was
the establishment OF the United States
Bureau OF Survey. whose services were
required for operators under the Ship
pins Board contract whether repairs TO
ship amounted to "S5 or $500 The
company which performed the survey
under the Martin-Gardiner contract was
guaranteed certain number OF surveys
q year and gained an income of about
100000 a year. The bureau for these
surveys determined the repairs on yes
sells, awarded the contracts. and the bills
had to be paid by the operators.
There was apparently no necessity
, for creating this new bureau" said Mr..
I Richardson. ''as there was already in
/ existence the American Bureau of Sur
vey and Lloyd's, which had been doing
this work for years. There was some
opposition 10 the establishment OF this
bureau among the officials Of the Ship
ping Board, and one important member
| of the board. who Is now the marine
superintendent of the Standard Oil
! Company, resigned his position because
! ne did not believe In the new policy"
| Representative Steele took up the
! questioning of Mr.. Richardson and in
! sisted upon being given specific in
stances of ALLEGATIONS which were open
| TO criticism. Mr.. Richardson said he
! would have to go to the records.
Says Payne Was Lax.
The witness said that the investigation
conducted by himself and Mr.. Fisher
had been made, not with view 10
showing crinlinality. but to show bad
business Judgment. Representative
Steele asked II the witness placed his
business judgment against that Of the
Shipping Board. Mr.. Richardson re-
piled that he was concerned solely with
giving the results of his investigation
and was willing to let the committee
decide whether the Shipping Board had
showed poor business Judgment
Mr.. Richardson said he thought OBJ
lection could be made to John Barton
Payne's method OF settling claims,
which. he said, was to call men into his
office and ask them what they wanted,
allowing It at once. Contractors soon
got the habit. he said, of doubling their
claims when they went 10 Mr.. Payne's
office.
} Pressed for specific instances Of
/ where political influence had beel
used, Mr. Richardson referred to a
claim the Beaumont Ship Company Of
| Beaumont, Texas, had against the Ship
ping Board. He said he understood
Senator Morris Sheppard had been APP
pealed to in the case.
How was the influence of Senator
Sheppard manifested" asked Mr..
Steele.
CIV a threat made by the Beaumont
company Itself" said the witness. There
had been delay I'm the settlement and
saw n telegram from the company say.
ing that IL the matter was not adjusted
Senator Sheppard would oe asked to take
# up
He said he did not know II Senator
Sheppard had acted upon the request.
Then ensued a discussion between Mr..
Richardson and Representative Steele OF
Just what might be considered improper
political influence. The witness said that
nf
political action. or the dragging into
the controversy of Representatives or
Senator'S when there was no need for
them was "unethical. improper and not
in keeping with good business" He adj
mitted however, that II a claim against
the Shipping Board was just. and that
there had been undue delay In getting
u settled, there might be no harm IN
having a Senator take II up with the
board
Al one point in his testimony Mr..
Richardson said. replying to a question
from Representative Steele:
"I hope you Will bear In mind. Mr..
steele. that our criticism Of the Ship
ping Board is not based upon allegations
Of criminality. Our report deals with
conditions which we allege are incom-
patible with good business and which, IL
allowed to continue. will be detrimental
TO the establishment OF a successful mer-
chant marine We are interested in busi-
ness practices and not I'm criminality.
THE Shipping Board and the Elmer
gency Fleet Corporation had hard tasks.
Perhaps theirs was n harder Job than
any which ever confronted body OF
men. and Il was inevitable that mistakes
should be made But many OF those
mistakes ought 10 be taken advantage
Of now. The Government has bought
the experience AT high price and IL
ought 70 make Use of II"