Great Falls daily tribune. [volume] (Great Falls, Mont.) 1895-1921, 1920-11-18

by Martin }. Gillen, former exc
Payne, when he was chairman Of
Gillen added that neither was there
any record Of $24O,OOO,OOO worth of
securities belonging to the fleet corpora
ton. These later were found deposited
with a Philadelphia trust company he
said.
The shipping board had to call on the
state, department to get records of the
division of various ships among Nor
wegian ship owners, Mr.. Gillen declared.
He said that on q ships taken over from
Norwegian account the government paid
out $34.5OO.O 600 for what the owners
had paid $11, ,4O4.595.
To complete the 100000 tank ship
being built by the Union Iron Works,
S63O,4S3 was expended, Mr.. Gillen said.
Settlement with the Norwegian ship
owners for more than $34,000.OO0 was
arrived at by trading with them after
they had put in claims for $42, 900 ,OOO,"
Mr.. Gillen said. These settlements, he
added, were without authority and with
out consulting records where the ships
were built
MY investigation disclosed that the
board had no records to show how much
money it had taken in during the war
and how much was expended
! He said that up to October /. 1910
there had been more than 5000 yoy-
ages Of shipping board vessels, but add
ed, that one shipping firm alone had
! money.
Mentions Harding's Name.
The name of President Elect Harding
Il
len said he had informed Senator Hard
ing that it was the duty of congress to
see that only big men, capable of hand
ling affairs entrusted to them, be ap-
pointed to all departments.
"It has been conceded he said that
but few men connected with the Emerg
ency Fleet corporation had an expert
knowledge of accounting" and he also
said that it was due to a complete
breakdown Of the accounting system that
the board had it's main troubles.
Mr.. Gillen testified that among other |
conditions disclosed by Tweedale as
treasurer were the following:
There was no balance sheet showing |
what funds the. board possessed, or in |
what banks it's funds were deposited. |
No Accounting Record.
There was no record of accounting /
with operators of shipping board vessels I
nor no way of determining how much |
money belonging to the government they |
had in their possession.
Prior to the advent of Mr.. Tweedale |
he said, the treasurer of the board was
ely IAN issuer of checks" some of the |
times without supporting claim vouchers. |
On November /, of this year, the wit
ness said. of the sum of $3,SO0,0O0, 900 |
expended there had been submitted to
the treasurer vouchers to cover only s.
700,OO0,OO0. Vouchers representing
disbursements of 5000, 900, 900 had been
excepted to" by the treasurer because
Of lack of sufficient supporting data,
and there was yet to be present vouchers
amounting to 81, OOOO,0O0.
Employ 600 to Check Up
Vouchers and data to make possible
the accounting so far obtained, he tes
titled, have been obtained by going out
into the field, starting with bank ac
counts of various firms, and persons
with whom the board and the Emergency
Fleet corporation had transactions and
tracing the accounts back to the board.
In this work he said a force of 900 uen
had been engaged.
In summing up his evidence Gillin
made it plain that he had found no evi- !
official Of the board-that they had
done their very best--but the energies
of the board had been concentrated on
Grafton. He further said an order Of
congress for an accounting of board
funds to the national comptroller had
rot been complied with when Mr. Twee-
dale took charge, because of the bad
condition of the accounts.
Ships Make Big Profits.
The witness also testified owners of
ships commandeered by the government
In 1917 were allowed to make profits far
In excess of what this country permitted
in it's other industries. He said ships,
regardless of their age and natural de-
probation, were taken on basic con- ;
tract of rental value of S4.15 dead
interest on investment, allowance of de-
probation, based on the war time earn
Ing value, and other items, made it pos
sible for the owners to make on the
contract as high as 81 per cent. He said
ships 30 years old made this profit for
their owners.
The witness said he knew of one ship
bought by New York firm for 100000,
on which alterations costing $475,O0O | {
were made and which earned In six {
months over 100000. +
This ship was then sunk by sub !
marine" Gillen added s
Prote0ted by Attorney.
Testifying as to taking over contracts \
Of ships built in American yards, he de- /
clared 1t was due to the precaution of a
former general attorney of the board, h
Joseph Cotton, that the United States il
was not forced to pay millions in con a