Norwich bulletin., 1920-11-10

the Shipping Board Emergency Fleet Corporation. graft in purchasing sup plies for and in repairing government owned merchant ships, and the use or po- itical or other influence in obtaining ,sntracts for ship construction and the aIlocation of completed vessels to op- erAting companies are among maze of charges made in a report submitted to ths house committee on shipping opera tlons bv A. M Fisher and J. F. Richard son. former employees of the board.
 Chairman Benson of the Shipping Board refused to discuss the report de- clarinr that any statement he might have To make would be made to the house committee which now IS contnu- ing its investigation of the Doards op- erations
 The renort was made public tonight by Inc committee of which Representatives Walsh. republican. Massachusetts, IS chairman. It covers more than lOO print ca narcs and deals exhanstively with many phases of Shipping Board opera lions as observed by the committees in- vestigators over a period of more than year. o. Mr. Fisher, who formerly was connect es with the Federal Trade Commission made d survey for the Shipping Board as to re,.ord-keeping systems in the, office or Inc lumber administration MT, Rich ---d~on for twenty years newspaper man was employed for several years In the boards department of investigation. in presenting the report Mir Richard son said it was designed to deal only with problems which could pa soIVed wholly by the shipping board itself ana .1.ff untouched" fourteen general sub jcuts in connection with the Doaro op- erafions Among these were Senumerat- ,a orranization of the board technical rrrore in the construction programme. Cerman-American deals, assumption or ,Tniornatic functions by board o1icials .nforcement of the new merchant marine srt and evasions of the selective service act
 Taking up in detail seven general phas- ss of the boards activities, the repor' charged gross waste or government |, funds- improperly drawn contracts Whlch roS, the government large sums and faii. are of the various divisions of the poaro I'd leooperate efficiently and the almost -ornulete failure of some of the divisions 10 function properly. s,-. Bedding of payrolls by firms repairins shinninr Board vessels. ownership py .onpanies operating government. Vessels ,f stock in companies furnishing sup piles 10 those craft at prices rang M li.s anvwhere from 70 to 50 per cent. above wholesale costs wholesale theft of sup oile. and equipment from ships. and the loss of millions of dollars through i'm properly secured loans made 10 con tractors building government vessels alse were charged
 Thc investig4tors alleged that in som' .aser the fleet corporation loaned money to. contracters and acceofHd as security ponds issued by comDa' incorporated by the contractors wh-~l bonds nave fo hsa NVorfhlpgcN The charge also was made that ir many cases shipbuildi plants with ma terials which are gong concerns arc turned back to contractors as salvage rropositions. and the contractors thus reap large profits at the expense of tho fleet corporation"
 Another allegation in the report was that many firms holding construction contracts inaugurated S~serty bond sell ing crusades in their pants and charged Co ship construction ten per cent. of the money thus secured as the cost for sell Ing the bonds. It was further charged hat in some cases the fleet corporation authorized contractors to take iron their appropriated funds" sums to pur rhaso Liberty bonds and that subsequent iy In some cases these bonds were solC Or hypothecated at a loss and the none, thus realized used for plant purposes"
 
 claim against the United States Ship ping Board Emergency Fleet Corporation Tor the iosses thus incurred" declared the report.
 Going into the matter of salvage O shlpbullding plants. uncompleted hull and material and stores, the report al lcxcd that it was asserted by person. n position 10 know" that the sale of tn millions Of dollars worth of materials owned by tho fleet corporation had nette' ao more than 13 1-2 cents on the dol ar at a time when the shipping board a otaer points was purchasing materials ii he open market at prices in advance o lae original cost prices of the material sold
 However" said the report, "the question seems to be one of maladmin duration rather than one of fundament al conditions insofar as the limited re turns from the sale of these material s concerned"
 Tho report said that the Bardee Com pany" was trying to purchase under blanket contract all supplies and store sf the fleet corporation and charged tha sne of the officials of this company wa -nlao an adviser to the Shipping Board sancellation and claims board.
 The Shipping Board announced las night sale of surplus material on the Pa rihc coast valued at about 315.000, 900 t -Rardee Brothers. Inc, of New York.
 As to building contract cancellation and hull removals, the report asserte that the Shipping Board entered into contract with George F. Rogers to re npove hulls which were on the ways in a s.fnished condition at the time the con h act was signed or to secure from tn builders or the owner of the land upo which the hulls and ways rested a re lease from further liability.
 For some reason" said the .repor -he United States Shipping Board sa7 at To make a contract with Rogers { paye him s5,609 per hull for each hu thus handled by him. The result ha been that in many cases the Unite Ktates Shipping Board has paid an add lionai S5.o00 ped hull to have Roger sell the hull or give it away, in man sascs the cost of the hull representa- several thousand eSSars. Rogers ha ound no difficulty in selling these hull at a very fair price, which rev. tues revert to Rogers. in addition | which he collected from the Unite itafes Shipping Board Emergency Fles Corporation Ss.ooo per hull fee"
 The report said the contract enterr nto with the American Lumber Sale Company "Ehould be gone into by tn committee, because it presents some fes uros that are questionable to say tt sast" The report then goes on {