New-York tribune., 1920-11-20
E.F. Luckenbach Declares
British Interests Were
Favored to Exclusion
of American Citizens
Witness Calls Ii
The Slipping Board
Bad Construction Work
Covered by Paint, Own
er Tells Investigators

A-NS'A L. bVCkeI DaCn, or the LuCken-
bach Steamship Company. one of the
largest and oldest ship companies in
America, testifying before the Con-
gressional committee Investigating the
Shipping Board yesterday charged
that development of successful
mcrican merchant marine was being
thwarted by favoritsm, ineficiency
and subservicncy to foreign interests
IN the part of the Shipping Board.
He referred to the board as "the
Tipping board" and charged that at
east 30 per cent of the boards ship
operators did not know their business.
1e said that at one time he planned
% transfer the vessels of his company
o British registry in order to get
airer treatment from officials of the
'oard. He also asserted that men who
ad never contributed a dollar to the
1pbuilding of an American merchant
marine were getting the choicest alo-
cations of ships, while operators who
ad been in the shipping business all
heir lives were relegated to the back
round. Mr.. Luckenbach complained
particularly of faulty construction Of
she boards vessels and overcnarges
made by the board.
The British Ring
He charged that foreign interests
nd men who had always been opposed
10 the upbuilding Of an American mer-
chant marine have made nests for
themselves in subordinate positions in
he Shipping Board with the intent OF
.elping foreign competition. The ship
1wner also referred to what he termed
ne influence of the British ring in
ne Shipping Board. On the latter point
e testified that the Kerr Steamship
Company, Of New York, was allowed
make three free trips-i. e., exempt
rom> charter hire--with vessels pur-
chased by the firm from Austrians af-
ter the entrance of the United States
INTO the war. Mr.. Luckenbach said
shat Mr. Kerr and Mr.. Clegg, his as
sociate, were then British subjects. He
aid that when the Kerr Company re-
eived this permission for free trips
'reight charges were the highest in
he history of the world.
Mr.. Luckenbach asserted that dis
elimination in the ALLEGATION of YES
sells dates back to the communicating
Of Dutch vessels in American waters
by the government These vessels, he
said, were allocated to British Ship
ing firms, while American operators
stood by. This kind of discrimination.
he averred, put his company out of
the Australian trade, on the upbuilding
of which it had spent large sums Of
money.
"A British firm" he said, (which had
not a single dollar invested in Ameri-
can shipping, was ahocated seventeen
boats for the Australian service"
Testifying in favor Of the bare boat
charter plan, whereby operators would
carry all expenses fo- payment of
crews. supplies, etc.. as against the
present method of charterInl and oper-
ttliOH III oilpSy NIL lLuChcHuuCIt Sdlus
IF such were the case the Shipping
Board would be making money instead
of losing millions of dollars eve day"
Serious Financial Losses
Mr.. Luckenbach testified that he had
been subjected to serious financial
.osses as a result of the methods of
the Shipping Board in the repurchase
Of ships commandeered from his COM
pany by the government in 1917 In
addition, he said, he had to pay s4,-
$4,000 for the recond;tioning of ships
requisitioned by the board and returned
to him on five days notice. He said
that claim presented bv him against
he board on these vessels, OF whish
there we're seven. remaiKe unpaid and
he has been informed that he will get
no interest, as he was not entitled to
it. He said he paid s1.000000 for the
recorditioning of one of these ships
alone.
Mr.. Luckenbach testified that since
the armstce his company bought eight
Continued next pase)