The Birmingham age-herald., 1920-11-10

an advance sometime of more than 100 per cent over the purchase price and | that in many cases 1t appeared that the company used fleet corporation plants and equipment ito reap enormous profits from the sale of materials which it had purchased" from the fleet cor poration
 The contract with the Southern Scrap Material company, which as it war stated, had been abrogated, also was criticised. It was charged that the contract was made by an agent of the board at New Orleans without the knowledge of his home office" and that materials in many cases not declared surplus were sold to the company at prices far below the market quotations at the time of the sales.
 The report further charged that the organization of the boards supply and sales department, particularly it's port representatives was used by the com pany to sell materials purchased from the shipping board and that in many cases sthe port representatives sold these supplies for perhaps 100 to l25 per cent net profit to the company and that certified checks for same were made out to order of the Southern Scrap Material company
 MANY OVERCHARGES It was alleged in the report that re- pair work on shipping board vessels was done on a basis of pay for workmen on { the job at current wages plus 50 per cent for overhead and profit, plus 10 per cent of material cost to cover cost of pur- chase and profit to the contractor. "Overcharges immediately became and con tinue to be common under this form of agreement" said the report. "It is to the advantage of the contractor to pad .AI1c feyhf mt men on the job, encourage loafing on the job, corrupt inspectors and time keepers, use helpers and charge for first class Workmen, use common labor and charge for skilled labor; drag the work to make it last longer, find additional work to do and get it specified, etc
 Corruption of United States shipping board emergency fleet corporation en- ployes and officials became the tendency under this practice. Usually attempts are made by contractors, and Tn many cases apparently are successful to secure the favor of the port construction ana repair representative, who has the as- signment of work to the contractors anG the local United States shipping board emergency fleet corporation agency audi tor, who has under his charge the check CTS and timekeepers."
 It was charged that good men were heckled insulted or even frightened off the work where they will not prove susS ceptible to corruption. The report oc- clsred it was a comparatively easy mat ter to accidentally drop par or wrench into ships hold when straight" timekeeper or inspector was standing under The report dealt al length with the furnishing of fuel ana supplies to shipping board vessels, deciar- ing the expenditure of millions of dol lars was left in the hands of masters, chief engineers and stewards.
 In many cases, it was asserted, the sup plies are purchased from brokers Who add a profit of from 25 to 40 per cent, give gratuities to masters and stewaros in the form of free launches, free auto- mobiles, free liquor, free entertainment, etc." and charge them in with the price of the supplies
 OFFICERS GOT REBATE The report charged that ships officers were enabled by the fuel allowances made for each voyage to finish with excess fuel that they receipted for full sup ply on rebunkering and then get re-