The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-12
AID OF BENSON
CONFIRMS VAST
SHIPPING GRAFT
$8,0 100000 a Year Is Paid to
1000 Workers to Unravel
E. f. c. Tangles.
MORE LOSSES PROBABLE
Congress QuiZZers Hear Steps
Have Been Taken to End
Waste and Abuses.
MORE LOSSES PROBABLE

Commander Abner B. Clements. ex-
ecutive assistant to Admiral William
S. Benson, chairman of the United
States Shipping Board. testifying yes
terday before the Congress committee
of which Representative Joseph Walsh
is chairman, said that the report
charging the loss of vast sums Of
money through abuses and bad ad-
ministratlon of Shipping Board af-
fairs was, so far as he knew. Sub
stantially correct"
Commander Clements was on the
stand all day. He said he was un-
familiar with many of the charges
and could not say whether they were
true. He was able TO give'a few in
stances, however, substantiating the
general allegations made in the re-
port submitted by A. NJ. Fisher and
John F. Richardson, upon which the
inquiry is based. His statement that
so far as his knowledge went the
charges were true was made at the
end Of his testimony. In response TO
question by Representative Israel
NJ. Foster of Ohio.
The report was placed in the hands
OF Commander Clements three weeks
ago in order that he might have time
to verify or disprove the allegations
The witness gave a detailed account
of what he knew of tho Improvements
under way or contemplated by Ad-
miral Benson. There still is oppor-
tunity, he said. for abuses and waste
and 1t is To reduce these possibilities
TO the minimum that Admiral Benson
has been concerned since assuming the
craftsmanship of the Shipping Board.
Commander Clements said some OF the
changes under way. especially those
relating to improved methods of ac-
counting. were suggested by him.
One OF the points made by Represen-
tative Walsh was that the Government
does not know to-day whether IL has lost
or made money in its shipping opera
tions
"Can a true balance be struck to show
whether the Government is making or
losing money!" asked Mr.. Walsh.
mot on certain date as Of that
date" replied Commander Clements, ex-
planning that on account Of the system
OF advancing money TO agents and wait
Ing until after voyages have been COM
pleted TO get complete statements the
accounting IS always behind. The Ship
ping Board might have money due which
did not show on the books, ne said. and
Il might also owe a lot of money and
not know IT.
when can we ever know what the
Government made or lost?" asked Rep
resentative Walsh.
"Only when we have day to day sys-
tenn Of accounting and a representative
OF the Shipping Board on each vessel. g
replied the witness 81 have recon-
mended these changes to Admiral Ben
son and expect to have them adopted.
"An operator cannot tell to-day just
what his receipts have been until he has
heard from his representatives in foreign
ports. and we are always behind the
length Of the voyage"
Commander Clements admitted that
despite the lack of definite accounting
the board makes advances Of money 10
operating concerns. He explained. how
ever. that the board is protected by a
heavy bond. which the operator Is re-
quired to furnish.
"Under the present system" per-
sisted Chairman Walsh. "the shipping
Board does not know whether it's made
money or lost money!"
Accounts Never Fully Audited.
THAT sounds like a seriou1 r. 5ic,-
ment." replied the witness. Blu. as
matter OF fact We have statements made
on the completion OF voyages and can
tell from these whether the ships are be
ing run probably. True. Il hasn't the
dehnlteness Of Wholesale house ac-
counting. where all the accounts are kept
in one place. The accounts OF vessels
operating under contracts No 1 and No
never were fully audited and under
contract No. 3 the accounting hasn't been
complete because new contract has
been expected since May 1 which would
be retroactive TO that GATE. Ihe assur-
ance OF n new contract form was given
by Commissioner Scott and Martin ].
Gillen."
Commander Clements said he FIRST sug-
gested plan Of day to day accounting
about two months ago. Within the last
few weeks. he said the details OF the
plan have been worked out in fairly com
plete detail
The witness testified that at the pres
ent time 1000 employees are working in
the comptroller's department az an an
nual salary outlay Of ss.o000OO trying to
straighten out the tangle OF accounts in
herited from the Emergency Fleet Cor
pora ion and the accounts resulting from
Continued on Ninth Page.