Arizona republican., 1920-11-30
WALSH INVESTIGATING COMMITTEE
HEARS MORE EVIDENCE OF RECKLESS
WASTE OF TAXPAYERS MONEY; Boil
LING ON STAND TODAY.
LRepubIlcan A. p. Leased wIreI

NEW YORK, Nov. 29.-Testimony
that 10 per cent of the s7,OeO.OOO ship
ping board repair bills in the South
district was graft was given
here today to the Walsh congressional
examining into shipping
board affairs. The allegation was
made by Charles Banzahf. a travelling
auditor of the board out of New York.
1t was contained in a letter written
by the witness to the general comp
toller of the board last July, read to-
day by Chairman Walsh and identi-
fled by the witness.
Means by which the alleged graft
was made possible, the witness testi-
fled, included lack of inspection. fail
ure to check repair work, overcharges
for materials and labor and unneces-
sary repairs. He cited an instance OF
a repair engineer who, he said. had sat
in a pilot house and approved repair
bills amounting to thousands of dol
lars" without ever looking at the work.
He declared inspectors had beea told
that costs were none of their busi-
ness and that there was a spirit OF
make, rather than cut down, repair
work.
German Ships Costly
Two of the former German ships
were brought into the inquiry for the
first time by Banzahf. He asserted he
had been instructed to check up bills
for the re-conditioning of the former
German liner Hamburg. now the New
Rochelle. This ship was sold on a
charter purchase contract to the Bal
tic Steamship corporation. The sale
price, he understood, was approxi-
/ tr,aa Arfx- &QGE nd Shiranf7ar hHaTfl
had advanced for the re-conditioning
OF the ship about 100000. The bin OF
| repairs for this ship, he added, was
about $500, ,000. which an audit of ac-
counts reduced approximately 1897 600,
/ The discrepancy between the sale prica
/ of the ship and the cost of recon
oitioning. he said he could not explain
| without the contract of sale, which he
! did not have with him.
TIE contract for the e-conditioning
he said, was awarded to the Morgan
/ Engineering company of Jersey City
He also testified the steamer Mercury
| formerly the Barboes, was taken to the
same yard for re-conditioning, bu
/ after s175.00e had been expended worl
was stopped because of lack of funds
Charge Labor Not Employed
Up to six or seven months ago. h'
continued, repair work in New Yorl
yards. generally speaking. showed
many Irregularities including chargins
of hundreds of hours that were no
rendered, excesses or class labor ant
excesses in materials.
Wooden ship construction promui
gated by the Emergency Fleet corpora
ton in the early days of its organiza
ton were gone into by Eads Johnson
who was district officer Of the fleet
i Johnson generally condemned tn
wooden ship idea and said he resigne'
because he could not conform to il
In describing an experience with
southern contractor who wanted {
build such ships. Johnson said the ide
seemed to be 'build one million woodel
ships that would take one million Ger
man tcrpedoes to sink"
Sales of surplus material now aver
aging about s1.0o0,000 monthly. G.
Watt, manager of the eastern divisioi
OF the sales and warehouse sectior
testified. The payroll of the division i
about 5000 600 a year.
Watt said that IL the present rati
Of sales continued, it would requir
about so months to close out the prop
erty.
1t was said by members of the com
mittee that r. w Boiling, Lester Sis
Ter, former secretary, and Alonz
: Tweedale. now general comptroller c
the shipping board. would appear be
fore the committee tomorrow. Nj
f, Boiling is expected to make q forma
/ statement