New-York tribune., 1920-11-19

the business of the Shipping Board in
the port, to regulate ship movements
and handle the necessary details Of
operation.
The witness also declared he was not
in favor of government operation OF
ships any more than he was in favor
OF other departments Of the govern
ment, including the War and Navy de-
partments, handling operations that
cou d be taken care of by private in
terests.
1T is my hope" he said, THAT out
of our troubles we will get legislation
that will be protection to US if ever
again we are called upon to go to war.
We will have strong merchant marine
when we have Shipping Board without
ships to operate"
Reverting back to the cost-plus con-
Board, Mr.. Gillen said that altogether
the government expended 5000 100000
in work on such contracts. The cost
plus system, he said, included a pro-
vision allowing contractors q profit OF
to 10 per cent and. in some cases,
other considerations above actual costs.
Padded Pay Rolls
1t was intended, Mr. Gillen said, that
the profit should apply only on the
original contract amount, all excess
and unforeseen costs to be assumed by
the Shipping Board, but not with profit
or the extra costs. The government,
Mr.. Gillen said, was mulcted when
padded pay rolls and profits were
charged as overhead expenses and
when excess railway charges and other
extraneous matters were entered as
costs. In one instance, Mr.. Gillen said,
ha ri
contractor. This, however, Mr.. Gillen
said, was the only instance where
money was recovered. The losses on
the cost-plus system, he said, could
be readily imagined, in the absence OF
data, when contrasting the $25,000,00O
item recovered with the total expendi-
ture Of $1,209. 100000.
Of total Of $208, ,243 ,7sS In Claims of
the Shipping Board against the army,
to last September. Mr.. Gillen said.
Brigadier General Franz 7. Hines, for
mer director OF transpoi tation tor the
army, the witness asserted, seen ed TO
take special delight in bl- ching ef-
forts to collect Shipping Board money
from the War Department It VS. only
with the exit Of General Hines from
the army, Mr.. Gilien said, and when
General Hines became connected with
q pltVdte sHIPpihS concern anu WAS
placed in the role of supplicapt before
the Shipping Board, that the latter was
able to obtain at least a part payment
on it's claims.
Mr. Gillen said that the board had
no such trouble with the navy.
The army claims, he said, arose
through supplying ships for army use,
the army paying for converting, but not
chartering the ships.
a Shipping Board settlement for
ss,Oo0,ooO on a food administration
was held up by the Comptroller of the
Treasury on the ground that the
board had no right to make such a
settlement, ,-r. Gillen testified. The
whole claim situation, he said, is in
very bad shape because, in the past,
claims were not charted or analysed
as to their nature. They totailed
billions Of dollars, the witness said.
Only few of these claims were set
into the Shipping Board, Mr.. Gillen
said. Mr.. Payne, he declared, support
ed his position against procuring ad
ditional appropriations for the board,
as he preferred to go out and recover
some of the outstanding money.
MIR. Gillen characterized Admiral
Benson. the present head of the Ship
ping Board, as the strongest, cleanest
character he ever met. at is a Won
der" he said, "how he has done as
veil as he has without board around
him or an organization. He has a real
knowledge Of operation of ships, and
since he has taken charge there ship
matters have been discussed in an In
telligent way"
Testimony supporting the charges
made by Captain William H. Cham
bless, witness before the committee,
was given yesterday by Bernard Van
Rensselaer,, an international lawyer
who conducted an investigation for the
Shipping Board of conditions at Rio de
Janeiro. early this year. He testified
that ring of repair and chandery men
was in operation at that port who
mulcted Shipping Board vessels of
scores of thousands of dollars in re-
pairs on ships. The witness testified
that he obtained twenty dispositions
which supported facts unearthed by his
own and government agents.
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