Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-11-10
irresponsible Individuals
Favored Over Established
Firms, Investigator Says

NEW YORK, November 10.-Individ-
mails and corporations Of no financial
standing and no experience in maritime
Affairs have been allocated United
States Shipping Board vessels for Op-
eration, ]. 3. Richardson testified here
committee resumed its Investigation Of
alleged Irregularities In Shipping Board
Affairs. Richardson, who il secretary
and statistician to the Walsh commit
tee, and who, in this capacity, con-
Quoted an investigation Of facts regard
clared that irresponsible individuals
were favored, while established steam
ship companies complained Of inability
TO secure any tonnage whatever from
the government.
Such ALLEGATION, the witness asserted,
rector Of operations" under the Ship
ping Board, who "eommandeered" YES
sells from established transport lines
and reallocated them to private COM
panies. Ships, he said. had been turned
over to companies in which relatives
Board were financially interested.
Lack Foreign Agents.
The competence Of applicants for
vestigated only through facilities pro-
vided by financial agencies.
He added that those who have pur-
chased outright vessels from the board
have complained they cannot compete
by the Shipping Board. Others. he
said. felt they had cause for dissatis-
faction when the board took back and
reallocAted vessels turned over to them
The statement has been made" he
have been allocated there are SO many
irresponsible companies that the list
must be cut in half
One Of the gravest defects Of the
shipping Boards system, Mr.. Richard
son said. was the lack of foreign agents
which on occasions has made it neces.
sAry for supercargoes on the boards
vessels to go out and solicit freight so
that the ship might not be compelled
TO return to its home port in ballast.
neciprocA working agreements with
other agents. through which ships might
be kept busy. adding:
Unnecessary Creation.
There are instances where an opera
tor with cargo enough for a half dozen
ships has but one vessel or two, while
other agents at the same time may be
keeping ships idle for lack of cargoes. -
The recent creation OF the United
States bureau Of shipping the witness
characterized a. entirely unneces-
sary."
MI. RICHARDSON teSttned that there
prevailed generally a system of COM
missions or gratuities to officers for
supplies purchased, paid by the per-
sons who sold the goods. This prac-
tice, he declared, had been reduced
greatly by private companies by means
Of auditing and checking. until now II
was only about per cent of what pre-
vailed on Shipping Board vessels So
general had the practice become on
Shipping Board steamers, he asserted
that private companies were COM
planning because they could not get
stewards due to the graft on Shipping
Board vessels"
He asserted there had been some
cases Of prosecution and conviction OF
ship employees charged with grating
but not enough to make it a dangerous
practice, as less than one-fourth OF
the cases presented had been carried
to prosecution.
illustrates Charges.
Charges illustrated by alleged spe.
ctfic instances Of waste included:
Lack OF safeguards against theft o,
supplies; lack of a system of stand.
ardizing expenditures, a practice Of
granting rebates and failure to sup
port reports Of sales Of ship supplies
purchase Of unnecessary equipment
and failure to support charges mad,
by the Shipping Boards supercargoes
Mr.. Richardson testified that he haf
found in one instance that supplies
sold for Shipping Board vessels hat
been p1h Tor At 50 Per cent htGhel