The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-10
Board Lose. Track Of Funds.

Mr.. Richardson testified that Tic ship
ping Board cannot tell how Eliieh OF Is
money is in the hands Of its operators
The comptroller" he said, "has 40
way OF knowing what moneys belong to
che Shipring Board, as the ship IS al
ways two or three voyages ahead Of Is
accounts. In fact the operator himself
under the present system has no way
ipf telling. The amount Is somewhere
between S125.0O 900 and S150.0OO. 900.
lThis condition is due to failure to check
promptly ard account for vessels In the
hands OF operators ard lack OF 80
operation between the ger eral office and
the various districts from whlch the
ships are handled"
Mr.. Richardson told OF numbering
company which overchargcd $4,000 on
some oil, the money being split among
the captain, the steward and third
person. The captain was arrested and
held In $4,000 bail. After his release
he got his ship back from the Shipping
Board. He sold his personal property
and household furnishings. took his wife
on board and sailed for Africa. where
he tried 10 sell the ship.
The witness testified that IN one in
rtRnce supplies sold for Shipping Board
vessels were paid for OF SO pGr cent.
higher than the market Wholesale rate
lie told Of one steward who bought
supplies Tor a twelve day voyage When
the steward quit al the end OF hvc days
another steward threw the Hrst sup
plies overheard and repurchased the
same amount in order to get his COM
mission.
Grape fruit knives were bought at
$3.50 each for a ships crew, he said I;
a wooden lemon squeezer cost SO. and
Strawberries for another crew cost sixty
cents a quart He said the berries we're
purchased upon the crews threat 10
walk out II tho berries were not OBJ
tanned In two hours. All these sup
plies were charged 70 the account OF
the Shipping Board. The temptation Of
I the steward to make money by graft IL
a great one. ne said, hccause the stew
ard IL the lowest paid OF the ships
officers
1T g. 50 profitable" said Mr. piah-
ardson. that private owners cosaplain
that they cannot get edwards aa they
are ail wtisiug 20 gct on tisc slipping
Board shiDs where the pay a. the came
but the giatuities are hlgh"
nationing Plan L. Abandoned.
Representative Henry j. steele OF
Pennsylvania asked the witness II q
plan OF rationing had been worked out
whereby an allowance could he made
pro rata on shipping Board ships the
same as in the navy. Mr.. Richardson
replied that w. II. J. Reymonds worked
out such scheme In 1918. and Il WINS
put into effect until June /. 1919. when
II was abandoned.
Mr.. Richardson cited the case OF a
man who, though he had never been on
ship. stiil received pny from the Shir-
ping Board. This irrCgularity was dis
covered when it wns learned that tao
man was working as hoIae detective
~ the 81 Regis Hotel a ghe s1m~ time
be was drawing money from tie Ship
ping Board. Ills pay WIS stopped when
the case was called TO The attention OF
tho officials
Chairman Walsh end Representative
steele were the only members OF the
committee present yesterday. The other
members are Representatives Patrick II.
Kelly OF Michigan. Lindley ". Hadley
Of Washington Israel NJ Foster Of Ohio
and Tom Connaliy OF Texas.
Mr.. Fisher formerly was connected
with the Federal Trade Commission. In
his Investigation for the committee he
has paid especial attention 20 the lun-
Der accounts ~ the Shipping Board. Mr..
Richardson uas a Newspaper man for
twenty years
IN The henfings which are 70 follow
il is expected That the lengthy report
submitted by lhc investis .'org VIII be
made the subject OF a careful scrutiny.
Mr. Richardson declared tha.. eltnougn
long. the report left out Hundreds q
specific facts which he had IN his pos
session. and dealt only with problems
which could be solved by the Shipping
Board itself. lie said he lett untouched
fourteen general subjects In connection
with the boards operation. Among these
he enumerated organization OF the
board. technical errors IN the constitute
fiQ. programme. German American
dds assumption ~ diplomatic functions