Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-11-11
DEFENDS SHIPPING
BOARD METHODS
Admiral Benson's Aid De-
cIares Practices Have Not
Been Corrupt.

NEW YORK. November 11.-Prac-
tees of the United States Shipping
Board. which led to the present inves-
tigation by the Walsh congressional
committee. have not been corrupt" ac-
corling to Commander A. B. Clement,
executive assistant TO Rear Admiral W.
s. Benson, who was the principal wit
Eess at the continuation of the COM
mittee's hearing here today.
If there is ground for criticising the
Shipping Board administration. Com
mander Clement declared, 1t is upon the
ground that perfect Generalization
between the different departments has
has not been attained
At the opening of the days session.
J. F.. Richardson, statistician of the
Walsh committee. took the stand to
correct previous testimony regarding
the master of a certain ship When he
made to the committee covering alleged
irregularities" he had said that this
captain, whose name was not given.
had stolen his ship and now was in
African waters Offering the vessel for
sale.
Richardson today said he had been
advised that the ship in question was
privately owned and not under the con-
troll of the Shipping Board.
Commander Clement admitted that
paid exorbitant wages, common labor
ers having at times received the pay
of experts. Efforts were made, how
ever. he said, to stop this practice.
Questioned regarding reported cost
ly delays in handling ships. said to
have resulted in wasted tonnage, he
said he knew of one instance-the
case of the steamer Lake Ellerslee.
The ship, he said. was unduly delayed
at Halifax in dry dock for repairs. 1t
was necessary in this case, he as.
serted, to shift the ships cargo in or
the propellers. This instance was one
which he cited as an example Of lack
of cooperation"
Interlocking contracts between
operators of Shipping Board craft.
Commander Clement said. was "an
abuse" which is quite common"
Il believe where an operator Of a
Shipping Board vessel is interested in
another company which is making
profits on the Shipping Board car
rieF legal steps should be TAKEN" he
said
He suggested that the practice
should be prevented, and said this.
would be possible by amending the
operating agreements. Steps to do
this. he added. now were being taken.
Practice All Right II Unabused.
For operators of Shipping Board
vessels to maintain subsidiary repair
and material companies. he said, was
''all right where the practice is not
abused"
The witness then described the
working plan of existing operating
fixed charges, establishment of new
and at first "unprofitable'' lines, and
steps taken by the board to Justify or
equaltse these lines A neW aGree-
ment. effective on May /, 1870, he
said. was put into operation to meet
conditions created BY Decreasing
freight rates.
Revertine to the subject Of account
ing, the witness suggested that To-
ceipts from the operation Of vessels
should be deposited in q bank deaig-
mated by the Shipping Board. subject
to check by the controller.
Under the present method Of book
keeping. he said, It Is impossible for
the board to determine what moneys
are its own except by sending audi
tors to check operators accounts.
Zone of the first things Admiral
Benson ordered" he added, was to
establish a better and more efficient
system of accounting"
Plans being worked out by the con-
troller at present, he said, include
devising a system Of standards for the
purchase of provisions and other sup
plies for ships and the establishment
Of a commissary department to relieve
captains and agents of the necessity
of buying supplies from local sources
in foreign ports. About haif or tne
vessels now carry a Shipping Board
representative in the person of a
supercargo.
CHICAGO, November 11.--Charles
Piez, former director general OF the
Emergency Fleet Corporation. criticised
the Walsh committee fnvestigaone .ne
fieet corporation. in a statement here
today and declared the committee had
overlooked the wholesome atmosphere
of the hold and dock Of the structure"
and was being just bilge water COM
mittee."
were doctors. BARRIERS and dry goods
clerks employed as inspectors IN the
shipyards. Mr.. Piez said: VIII the
committee please indicate now now a
force of 10000 shippuiioers p oens,ded % to to
$4,000 without bringing in some
doctors. BARRIERS. dry goods clerks
and other vocations?
Benson to Be Called.
Chairman Benson and other ofhciais
of the Shipping Board PROBABLY % WI
mittee Investigating Shipping Board
activities. now holding hearings IN
New York. Chairman Walsh of the
committee has telegraphed Chairman
Benson to that effect.
"The Shipping Board stands ready
to lend every possible assistance to
the investigation. either by .1r furnish. sh:
ne rd's control or by having any of
it's It's employees appear before the COM
mittee to testify" Chairman Benson
declared in announcing receipt OF the
Admiral Benson has refused here
tofore to make any comment on the
work of the investigating committee
w charges affecting the board con-
ta;ned in reports of committee. inves-
tigators. His formal statement yes.
terday, however. explained his atti-
"The chairman feels" it said. that
This investigation is conducted by
Congress and that he is not privileges
70 make any comment in regard to it
Int that his duty is to lend it every
nossible assistance in accomplishing