The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-17
SHIP BOARD CHARGES
ARE UPHELD In FULL
continnea rrom 49, Paqe.

chlnery IN the best condition he could
for what he described as "a long wait
MacNeil said that in his opinion as
an engineer. the yard OF the National
company was one of the best in the
country. IL was built at a cost Of
s2s5. 900 and sold for $4,000. he said
MacNeil testified that a Mr.. Sallus,
who was the resident agent of the Elmer
gency Fleet Corporation AT the National
Yard, got contract from the Govern
ment to build a marine railway on adj
Joining land and obtained loan OF
S1OO, 600 to do it. The witness asserted
that though the marine railway has been
completed none OF the loan has been re-
paid and the interest charges have not
been met.
He testified that while q complete out
fit OF office furniture was standing Idle
al the National Yard a new auditor who
went 70 Savannah for the Shipping
Board was forced 10 buy office equip
ment ia the open market because Mac
Neil could not get the requisite authority
to turn over any OF the furniture TO him.
only one OF the five contracts let at
Savannah for the construction Of ships
for the Government was absolutely hon
est MacNen said. He named the South
land Company as the one exception. IL
built several tugs for the Emergency
leet Corporation.
MacNeil WITS subjected to careful
cross-examination by Representative
Henry ] Steele. Democrat, OF Pennsyl-
Vania. who questioned him particularly
about the extent Of his authority at Sa-
Vannah
The witness declared that when he
took up his duties at savannah he was
told simply to take charge" He said
these instructions were given verbally,
and no written Instructions were givcii
MIN either then or later.
j was never able to find out just
what my authority was said MacNeii,
but ] assumed whole lot when l tried
20 stralghten out the tangles."
Discussing the lack OF organization in
the department Of the Shiping Board.
NAcNeil Sd Id that in his opinion the con-
struction yards We're better organized be-
cause they always got ahead Of the
board"
On cross-examination MacNeil said
he did not know that the terms Of the
contract Of the National Shpbrilding
Company had been changed by the head
office AT Fhiladehhia. lie insisted that
there was q continual conflict Of au-
thority. Every time he was told 70 stop
the work he said. somebody else told
him to let II 20 on.
While At Savannah. he said. he made
/ two inventories OF the plsnt. and two
more were made by the cancellation ana
adjustment division lie said $25 600
must have been spent IN the two nven-
tories. though he never knew why 80
many were made and never noticed any
results coming out OF either OF them.
MacNeil said the plant appeared to be
as busy after 1t had been closed down as
before. Under the laws OF Georgia, he
said, the plant belongs t. Mr. Sallus. as
ii was built on his ground, a rice swamp
island. and no lease or rental was set
forth in the papers.
The Tale oG the Anchor Chains.
At this point in the testimony Mr.
Richardson leaned over and whispered
something 10 Representative Joseph
walsh OF MagsRchusctts. chairman or
the committee Mr. Walsh smiled ana
asked the witness IL he ever had heard
OF any anchor chains. MacNen then
told Of some anchor chains which We're
on the ground a quarter Of mile from
The waterfront. There was a lease OF a
spur OF the Seaboard Air Line over
which the chains We're hauled back to
this spot When the lease expired there
was no way TO get the chains 70 the
waterfront MacNeil got an order ne
said, 10 ship two sets Of chains 10 Wf-
mngtoT. Del lie told his superiors
them He was Informed that his orders
were simply 10 ship those chains"
Very well III send them" MacNel
told them. according u his testimony.
II built track from the land whore
they were lying and hauled them 20 the
water front. This job was paid for with
n ''23" voucher, and nobody ever asked
me what that voucher was for"
A "2S" voucher MacNeil explained
was one Issued 70 pay for some special
job not covered by the ordinary run Of
administrative work. MacNeil made II
clear that he had no criticism to make Of
the engineering work. for which he was
directly responsible He did insist that
the financing was open 10 all sorts of
ObjectiOns-that II was careless. loosely
handled. open to many possible forms OF
fraud and that funds could easily be d.
verted from the purpose for which they
were intended.
Tile most sweeping accusations made
IN the report by Fisher and Richardson
were corroborated by William r. Nor
ton, former agent of the Shipping
Board bureau OF Investigation He was
FOR q time employed as INVESTIGATOR IL
tho department Of Capt Yates and later
became deputy chief Of the bureau ~
charge OF tho Pacific coast district. with
headquarters at San Francisco. He con
tinued In that position until last July
2S when he resigned 10 accept posi-
ton with the United States Mail Steam
ship Company
Morton gave n great mass Of test-
mony, covering dozens Of cases IN every
part Of the country Chairman Walsh
asked him why he requested the com
nittee not 10 call certain witnesses dur
ing It's hearings NJ Seattle He replied
that he did not want these witnesses 10
enjoy an immunity bath
As an instance Of fagrant over
charges on contracts Morton specified
the Union Iron Works at Norfolk. Va.
He called on the sccreta ~ treasurer Of
the company. he said. and got m affi-
davit from him which said the COMPANY
had given Lester George. the chief in
spector five shares Of the capital. G aorge
he said stood high with the Shipping
Board officials
Had Good Time" on u. y. Pny,
on one job Morton said the company
was paid for dfty-eight men The rec
ords OF that day showed be said that the
Union Iron Works only had q personnel
OF lfty-two. including office forces This
was durinr last winter and snring over
charges by this company were enormous
he said. Men would be sent out 20 a
shin on onc-day job ana The companr
would forget 20 go after thorn leaving
them on the ship for "A week or more
The men shot craps. had good time
and the Shipping Board allowed tho bills
for tho entire time.
col Ia ~. .rf 81. L..