The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1920-11-30
Ten Per Cent Shipping Board
Repair Bills Graft Charged
Auditor Cites Instances of Al
legged Irregularities Tes-
tifying as Witness
BOILING TO BE RECALLED
Bills Amounting 10 Thousands
Approved Without Engineers
Ever Seeing Work
lsY AssoeIsted prsss.l

NEW YORK. Nov. 2g.--Testfmonv
that 10 per cent Of the $1,000. .0oo shlp.
ping board repair bills n the soush
Atlantic district was graft WAS given
here today 10 the Walsh Congressional
committee examining into shipping
board affairs. Tie allegation was
made by Charles Banzahf a travelling
auditor of the hoard out of New York
II was contained in 4 letter written bv
the witness 20 the general comptroller
of the board last July. read here to-
day b. Chairman Walsh and ldentI
fled by the Witness Means Is which
the alleged graft" was made possl.
bic. the witness testified. Included laex
Of inspections, failure 80 cheek repair
work. over charges for materials ami
iabaf and unnecessary repairs TIE
itea and instance Of a repair enat-
ueer who he said, had sas Ia 4 pilot
house and approved rep8lf bliss
amounting 20 thousands of dnHafss
without ever looking al the work f8s
declared Inspectors had heen toI3 lhat
costs were none - their business
and that there wnn 4 splri ~ make.
rather than cut down repalr worh
Two &c the former German ahins
were brought into the Inquiry far tie
frrt time bV nangahf Zee asserted -
had been instructed - cheek up bills
for the re-eonditionius ~ the former
German liner Hamburg n8E the New
Rochelle This ship WIS sola on
charter purchase contract a. ghe BAL
tie Stea nship Carnaratton Tie SAFE
price he umnerstuod. was AHnFnSt.
maaeiy ssss 0ae and ms sllnpla9 hoard
had advanced foe the re-eansltaogalmn
Of the shin about SOC eco The bills
of repalrs Tor this ship. Sc adaes wts
about si.60oo0o, which an aualt of ae-
counts reduced approximately s83f.-
Geo. The discrepancy befwseu the sale
price of the ship and lhe cost 81 r..
conditioning he aaid ne could nat eg-
plain without the contract IL SALE
which he did not have with him
The contract Tor The recondifionlas.
he said. WAS awarded the Morgan En.
gineering company of Jersey Citg lie
also testified The steamer Mercury.
formerly the Harharossa, was taken h
the SAME yard for recpnaitionlng but
after Stsanoe had been expended work
was stoppett because - lack II funds.
Wooden ship construction contracts
promulgated by the Emergency FIenf
corporation In the early days Of It's
organization were gone into hy Eada
Johnson. who was district officer uf
the feet Johnson generally con-
denned the wooden ship idea. and said
ne resigned because he could not con-
form 20 n
Sales ~ surplus material now aver
ase about st.00o,o coo monthly. George
-. Watt manager OF the eastern di.
vision of the sales and warehouse see
ton, testified. The payroll OF the d.
vision is about $500 600 a year. Watt
said II the present ratio Of sales con-
ginued. (, would require about eighty
TO close out the property. Rob
ert Laggren. head OF the department.
who had previously testified. was re-
called and said he planned 90 clean
the entire matter up in one year by
making sales OF entire projects.
II was said BY members Of the com
nittee that II. W. Boiling. treasurer
Lester Rialar. former secretary, and
Alonxo Twaedaie, now general comp
IrolIsr Of the shipping board. would
appear befGre the COMMITTEES tomor-
row. AfF. Boiling Is expected 20 make
/ formal statement.