Norwich bulletin., 1920-11-18
MORE STARTLING DISCLOSURES
 IN SHIPPING BOARD INoUIRl

New York, Nov. 17.--A series of star ting disclosures tending to support what he declared to be complete lack of adequate accounting system" in the handling of government funds, were made here today by Martin J. G.ilen, a witness before the Walsh congressional commit | tee Investigating the affairs of the United States shipping board. Gilien was a special assistant to former Chairman John Barton Payne.
 The name of President-elect Harding was brought into the record when Gillen said he had informed Senator Harding that it was the duty of congress to sec that only big men, capable of handling affairs entrusted to them, be appointed to all departments. He said appointments should be confirmed by the senate only when it is determined that the men named are capable and efficient.
 Tt has been conceded" he said, that but few men connected with the Emer- gency Fleet corporation had an expert knowledge of accounting" and he also I said that it was due to a complete break down of the accounting system that the board had it's main troubles. Figures used today by the witness ran into billions of dollars. He testified that one of the first acts of Chairman Payne when he discovered the condition of af- fairs was to go to the secretary of the treasury and secure from him the Ser i vices Of Alonzo Tweedale. whom he made treasurer of the board. This was done about Aug. l, 1919, and he eistified that among other conditions disclosed by the new treasurer were the following: i There was no balance sheet showing what funds the board possessed or in what banks it's funds were deposited. l There was no record in the hands of ] the board of securities valued at more ! than $240, ,0O0,000 which the board held. |. The securities, he added, were found in : the vaults of a trust company in PhiladeI- pilia where they had been placed for safe keeping.
 There was no record showing in detail how S2, ,3G0, ,00O, ,O0u had been expended up 70 that time.
 i There was no record of accounting with i operators of shipping board vessels nor no way of determining how much money belonging to the government they had in | their possession.
 Prior to 9r. Tweedale. he said. the treasurer of the board wa sonly "an is- suer of checks" often without supporting i claim vouchers.
 On Nov. l, this year, the witness said. of the sum of $3,S0o GOO 900 expended, l there had been submitted to the treasurer 1 vouchers to cover only S210O,uOU,JOO. | Vouchers representing disbursements of S90o, ,Q00 coo had been excepted to- by
 the treasurer because of lack of sufficient supporting data, and there was yet to be presented vouchers amounting to Sl,100,. coo 000.
 Vouchers and data to make possible tn. | accounting so far obtained, he testified have been obtained by going out into the
 field, starting with bank accounts of va
 riOus firms and persons with whom the
 board and the Emergency Fleet corpora | tion had transactions and tracing ac-
 counts bak to the board In this work he
 said force of 800 men had been en-
 gagged.
 Jn summing up his evidence. Gillen said
 the shipping board had gone out and ob-
 tained the best possible men to handle its | ship construction and its operating di.
 visions but it had failed to get man big
 enough to establish and carry out de
 partment of efficient accounting.
 He made it plain that he had found nc
 evidence of dishonesty on the part of ar!
 official CT the board, that they had donj
 their very best" but the energies of the
 board had been concentrated on getting
 ships and getting them into operation He alos said comptrolers of the board
 and the Emergency Fleet corporation oD
 erated practically independent of tn,
 treasurer of the shipping board. Hc fur
 ther said an order of congress of July l 1918, for an accounting of board funds tt l the national comptroller had not beer