Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-11-10
WASTE AND EX-
TRAVAGANCE SHOWN BY
FORMER EMPLOYEES.
MEN ALSO TELL OF
DEALS WITH GERMANS
Graft in Purchasing Supplies, Use Of
Political Influence in Obtaining
Contracts, and Other Wrong Doing
Shown in Report Made to Govern
ment Board-Slackers Active.
By Associated Press.


ping board emergency fleet corpora
ton, graft in purchasing supplies for
and in repairing government owned
merchant ships. ana the use OF politi-
cal or other influence in obtaining
contracts foc ship construction, and
the ALLEGATION % corhp.e.ed vessels Ia
operating companies, are among a
maze of charges made in 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 to discuss the report,
declaring that any statement he
might have to make would be made
to the house committee, which is now
conducting an investigation of the
boards operations.
Many Phases Covered.
The report was made public to-
night by the committee, of which
Representative Walsh. republican.
Massachusetts. is chairman. 1t covers
more than 100 printed pages and
deals with many phases of shipping
board operations as observed by the
committees Investigations over q
period OF more than year.
Mr.. Fisher. who formerly was con-
nected with the federal trade COM
mission, made survey for the ship
ping board as to record keeping sys-
tens. In the office Of the lumber
administration, Mr.. Richardson, for
twenty years a newspaper man, was
employed for several years In the
boards department OF investigation.
In presenting the report. Mr.. Fish
or explained that 1t was designed to
deal only with problems which could
be solved wholly by the shipping
board Itself, and left untouched"
fourteen general subjects in connec-
ton with the boards operations.
"Evaded the Draft Act"
Among these were enumerated or
ganization of the board, technical err
rors In the construction program,
German American deals. assumption
of the diplomatic functions by board
officials, enforcement of the new
merchant marine act and evasions OF
the selective service act.
Taking up in detail seven general
phases Of the boards activities, the
report charged gross waste Of gov
eminent funds. improperly drawn
contracts which cost the government
large sums. and failure of the var
ious divisions of the board to coop
crate efficiently and the almost COM
plete failure of some of the divisions
to function properly.
Padding Of pay rolls by firms re-
pairing shipping board vessels, own
ership by companies operating gov
eminent vessels of stock In compan-
les furnishing supplies to those craft
at prices ranging anywhere from 40
to SO per cent above wholesale costs.
wholesale theft of supplies and
equipment from ships, and the loss
Of millions of dollars thru improperly
secured loans. made to contractors
building government vessels, also
were charged.
Took Worthless Bonds.
The investigators alleged that In
some cases the fleet corporation
loaned money to contractors and ac-
copied as security bonds issued by
companies incorporated by the con-
tractors (which bonds have since
been found to be worthless
The charge also was made that in
many cases shipbuilding plants with
(which are going concerns
are turned back to contractors as SAL
wage propositions, and the contrac-
tors thus reap large profits at the exJ
pense of" the fleet corporation.
Another allegation in the report
was that many Of the firms holding
construction contracts inaugurated
liberty bond selling crusades in their
plants and charged to ship construc-
ton 10 per cent of the money thus
secured as the cost of selling the
bonds.
1t was further charged that in some
cases the fleet corporation authorized
contractors to take from their ap-
propriated funds" sums to purchase
liberty bonds and that subsequently,
in some cases these bonds were sold
or hypothecated at loss and the
money thus realized used "for plant
purposes"
Never Missed a Trick.
"They (the contradictory then put
in a claim against the United States
Shipping Board Emergency Fleet
Corporation for the losses thus in
Cured" declared the resort.
},,fo ~ Two "a
Of shipbuilding plants, uncompleted
bulls and material and stores, the ,e-
port alleged that it was asserted by
persons in position to know that the
sale of the millions Of dollars worth
of materials owned by the fleet cor
poration had netted no more than
1914 cents on the dollar at a time
when the shipping board at other
points was purchasing the same ma
terials in the open market at prices
in advance of the original cost prices
of the materials sold.
The report said that the "Barde
company" was trying to purchase
under blanket contract all supplies
charged that one of the officials of
this company was also IAN adviser to
the shipping boards cancellation and
claims board"
Firm Buys Big Stocks.
The shipping board announced last
night sale of surplus material on the
Pacific coast valued at about s15.-
$1,000 to "Barde Brothers, incorp-
Grated of New York.
AS to building contract cancella-
tons and hull removals, the report
asserted that the shipping board en-
tered into a contract with George f.
Rogers to remove hulls which We're
on the ways in. an unfinished state
at the time the contract was signed
or to secure from the builders or the