New-York tribune., 1920-11-10

the Pacific Coast, valued at about
S15,oooooo to "Barde Brothers, Inc"
Of New York.
As to building contract cancellations
and hull removals, the report asserted
.hat the Shipping Board entered into a
contract with George F. Rogers to re-
move hulls which we're on the ways in
sn unfinished state at the time the con-
tract was signed, or to obtain from the
builders or the owners Of the land upon
which the hulls and ways rested re-
lease from further liability
"For some reason said the report,
"the United States Shipping Board saw
fit to make contract with Rogers to
ray him $4,000 a hull for each hull
thus handled by him. The result has
been that in many cases the United
States Shipping Board has paid an
additional $4,000 per hull to have
Rogers sell the hull or give it away
In many cases the cost of the hull rep
resented several thousand dollars.
Rogers has found no difficulty in sell
price, which revenues revert to Rogers,
IN addition to which he collected from
:he United States Shipping Board
Emergency Fleet Corporation $4,000 a
aull fee"
Urges Lumber Contract Inquiry
The report said the contract entered
INTO with the American Lumber Sales
Company should be gone into by this
committee. because it presents some
features that are questionable, to say
the least The report then goes on
70 charge that the company was to
some extent composed of persons
previously engaged with" the fleet
corporation, that it purchased ma
terials from the corporation at stp-
dlated price and sold these materials
rs they were at an advance sometimes
or more than 100 per cent over the
purchase price and that in many eases
i appeared that the company used
Aeet corporation plants and equipment
10 reap enormous profits from the sale
q materials which it had purchased"
rom the fleet corporation
The contract with the Southern ScraD
Material Company, which it was said,
lad been abrogated, also was criticized
IL was charged that the contract was
made by an agent Of the board at
New Orleans "without the know ledge OF
IS home office and that materials in
many cases not declared surplus, were
old 20 the company at prices far be-
low the market quotations at the time
Of the sales
The report further charged that the
organization Of the boards supply and
sales department, particularly it's port
repre- sentatives, was used by the COM
pany to sell materials purchased from
nc Shipping Board and that in many
cases the port representatives sold
these supplies "for perhaps 100 to 1875
Der cent net profit" to the company
and that "certificd checks for same
were made out to order of Southern
Scrap Material Company
Overhead Costs Padded
It was alleged in the report that re-
pair work on Shipping Board vessels
was done on basis Of pay for work
men on the job at current wages plus
% per cent for overhead and profit,
plus 10 per cent Of material cost to
cover cost Of purchase and profit to
the contractor
"Overcharges Immediately became
and continue to be common under this
form Of agreement,' said the report
at is to the advantage Of the CON
tractor to pad payrolls. slight work,
pat TOO many men on the job, encour-
age loaiing on the Job, corrupt inspect
ors and timekeepers, use helpers and
charge for first class workmen, use
common labor and charge for skilled
labor. drag the work to make it last
longer find additional work to do and
get it specified, etc.
"Corruption Of United States Ship
ping Board Emergency Fleet Corpora
tion employees and officials became the
tendency under this practice. Usually
attempts arc made by contractors, and
in many cases apparently arc success
ful t. gain the favor OF the port CON
ctruction and repair representative
who has the ssignment of work to the
various contractors, and the local
United States Shipping Board t.mcr-
gency Fleet Corporation agency audi
tor. who fas under his charge checkers
and timekcepers."
Honest Men Frightened OFF
II was charged that good men were
heckled, insulted or even frigh tened off
the work where they would not prove
susceptible to corruption" The report
declared it was a comparatively easy
matter 20 "acc ideMally" drop a bar or
wrench INTO a ships hold when Il
"straighi' timckeeper or inspector was
standing under.
The report dealt az length with the
furnishing Of fuel and supplies to
Shipping Board vessels, declaring that
the "cxpenditure of millions of dol
lars was left in the hands of masters
chief engineers and Stewards" Ir
many cases, it was asserted, the sup
olics are purchased from brokers, who
add profit Of from 25 TO 40 per cent
give gratuities to masters and stew
ards in the form Of free launches, free
automobiles. free liquor, free enter
tainment, etc." and charge them II
with the price Of supplies.
The report alleged that ships officers
were enabled by the fuel allowance!
made for each voyage TO finish will
excess fuel, that they receipted for
full supply on rcbunkering and "thel
got rebate from the bunkering com