New-York tribune., 1920-11-10

S'AANA AiAS1 NAtoliC SlAIpS, anu lilS 0SS
Of political or other influence in OBJ
tanning contracts for ship construc-
ton and the ALLEGATION Of completed
vessels to operating companies are
among maze of charges made in a
report submitted to the House Com
mittee on Shipping Board Opera
tions by A. NJ. Fisher and J. f. Rich
ardson, former employees of the
board.
Benson Has No Reply
Chairman Benson Of the Shipping
Board refused tonight to discuss the
report, declaring that any statement
he might have to make would be
made to the House committee, which
is continuing its investigation of the
boards operations.
The report was made public tonight
by the committee OF which Representa-
tive Walsh, Republican, Of Massachu-
sets. is chairman. 1t covers more than
one hundred printed pages and deals
eXhaustivcly with many phases Of
Shipping Board operations as observed
by the committees investigators over
period Of more than year.
Mr. FISHER, who formerly vas CON
nected with the Federal Trade Commis-
SION, made a survey for the SHINING
Board as to record keeping systems IN
the office o. the lumber administration.
Alr Richardson, for twenty wears =
newspaper man, vas employed for sev-
eral years in the boards department o.
investigation.
cross Waste IL Charged
In presenting the report Mr.. Rich
ardson said it was designed TO deal onIv
with problems which could be solved
Wnoily oy the Shipping Board itself. and
ie1e untouched fourteen general sub
Jecls IN connection with the boards
operations. Among these we're orpani-
zatlon Of the board. technical errors H.
ne construction program, German
american deala, assumption of diplo-
matte functions by board officials. on
1orcement OF the new merchant marine
act and evasiors Of the sclective servir.
act.
Taking up in detail seven genera,
phases OF the boards activities. the re-
port charged gross waste of govern
Incnt funds, Improperly drawn con
tracts, which cost the government large
sums, and failure Of the various d.
VISIONS OF the board to cooperate ef
AclenJly and the almost complete fell
ure OF some of the divisions 10 funr
ton properly
Padding Of pay rolls by firms repa5r
ins ShIppiAg Board vessels, ownership
Dy companies operating governmen.
vessels OF stock in companies furnish
ing supplies to those craft at nrices
ranging anywhere from 40 to - ns-
cent above wholesale costs. whole,,ls
theft OF supplies and equipment frar.
shlps. and the loss of millions o. co..
lars through improperly secured loans
made to contractors building govern
ment vessels also were charged
Loans Secured by Worthless Bonds
The investigators alleged that in
some cases the feet CORPORATION lent
money t. contractors and accepted a.
security bonds issued by comnanies in
corporated by the contractors, which
bonds have since been found to De
worth less" The charge also was made
that III many cases shipb1ldng plants
with materials (which are going con
Germs are turned back to contractors az
salvage propositions, and the contrsc-
tors thus reap large profits at the cx-
pense" Of the feet corporation.
Another allegation IN the report vas
that many firms holding CONSTRUCTION
contracts inaugurated Liberty bond
sailing crusades IN their plants and
charged to ship construction 10 rot
cent OF the money thus obtained IS the
cost for selling the bonds. Il was fur
ther charged that IL some cases the
feet corporation authorized contrast
ors 20 take trom their appropriated
iunds' sums 10 purchase Liberty bord4
and that subsequently in some cases
these bonds we're sold OF hynot9ecgtee
at a loss and the money thus realized
used for plant purposes"
"lhey the contractors) 'hen put IN
Z clam against the United States ship
ping Board Emergency Fleet Coroora-
| or lol ne losses thus incurred" de
clarcd the rcpor,.
Cong mo the matter os saixage o.
snlppunorg plants. rncompleted nul1s
ard material ard stores, the report al
eged tnat 1t Mas asserted bv persons
IN position % snow' that the sale of t.,e
ml4hors OF dollars worth Of materials"
owned by the feet corporation had
netted no more than 1874 cents on the
dollar at time when the Shipping
Board At other points was purchasing
the same materials in the open mar
ket at prices IN advance o. the original
cost prices OF the materials sold.
Naladministration Is Cause
''Hovever,' said the report, tho
question seems to ne one Of maladmin-
lstration rather than one Of fuuda-
mentai conditions. IN 50 far a. the
limited returns from the sale OF these
materials is concerned
The report said that tine Barde Com
pany" was trying to purchase under q
i blanket contract al supolieS and
Of the feet corporation and charged
that one of the officials Of this com
pany VAS also an adviser TO the Shin
ping Roard's cancellation and claims
| board.
The Shipping Board announced lash