The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1920-11-11
SHIPPING BOARD
COMMITTEE WILL
SUBPOENA BENSON
Records of One Southern Of
fee Not Removed When
Office Fixtures Were Sold.
Clements Will Be Heard
Today

] New York, Nov. l0--Addit!onal evil
dcnce of alleged irregularities and mis-
mana cement in the affairs OF the United
States Shipping Board were introduced
here today before the congressional
committee investigating the a1airs or
the board by J. f. Richardson, assistant
secretary and statistlctan OF the com
mittee, in concluding his direct testi-
mony The investigation Is based
largely upon Al report submitted by Mr..
Richardson and ~ NJ. Fisher. secretary
and stattstician OF the committee. after
a years work.
At the conclusion OF today.s session
Chairman Walsh announced that Com
mander y. Il. Clements. executive as
slstant to Admiral Benson chairman Of
the Shipping Board. would be witness
tomorrow morning Chairman Walsh
read telegram from Admiral Benson.
which stated that the board would not
object to Commander Clements testify
ing. and that the records. officers and
employees OF the board were at the dis
posal OF he committee at any time or
place the committee desired.
Chairman Walsh said Admiral Ben
son and other officials OF the hoard. as
we'll as Charles VI. Schwab and Charles
Z. rLez. former heads OF the Emergency
Fleet Corporation. may be asked TO ap-
pear before tho committee. The hear
ings will be continued in New York for
two weeks. and then il Is likely. said
Chairman Walsh. that the committee
will 10 to Phlladeiphk. and Washing
ton to continue its work.
Cross-examination by Representative
Henry J. Steele. OF Mr.. Richardson. took
up q considerable part of the afternoon
session. ChnraCtertz!ng the witness
previous testimony as Il genera indict-
ment" Mr. Steele sought TO bring out
specific instances OF alleged political
influence" favoritism. etc.
Instances OF Waste
The witness prefaced his reply TO the
first question asked with the statement
that his report did not seek to prove
any Illegal act on the part OF any per-
son.
The purpose OF our criticism" he
said, "is, we hope. to bring out existing
conditions so that they may be rectl-
Ned by the Shipping Board Itself.
want TO give full credit TO the ooaro
task-one Of the greatest ever met oy
men,"
Answering questions as to specific
instances Of alleged political influence
he recited that he had been informed a
shIpbu!ldlng Arm in Texas had threat
ened" to appeal TO Il senator from that
state to bring about what was claimed
by the company to be a delay IN SCI.
tlement Of an account. He added ina!
he had no knowledge as to what, II
ANYTHING, the senator did. Another In
stance recited was that former con.
gressman had accompanied an onlcer OF
shipbuildIng firm to Washington, 10
assist In securing contract.
He added that he had no knowledge
OF any ahIpyards or contracting -srr'a IN
which member OF congress- was inter
ested. He also said that he did not
criticize all OF the ALLEGATION contracts
entered into by the board.
Careless with Records
The witness also brought out IN MS
testimony Incidents of what he termed
carelessness in the handling and pre-
serving Of Shipping Board records IN IN
one OF the southern district he said
desks and Ale cabinets were disposed or
without the contents being removed ana
that these records were scattered ana
many OF them destroyed. In one cas-,
he testified, where filing cases had been
certified and sold as surplus. duplicates
were purchas sed but short time laer
at a greatly Increased price.
He also charged sales Of material had
been made without proper inventory;
REGARDING amortizlng OF plants. he said
he had found differences where there
were many thousands OF dollars dliler-
ence between accounts rendered 10 Ine
Shipping Board and those rendered 10
private or municipal bodies or the same
properties. He also said he had FOUND
cases where rentals" were Included IN
valuations presented for settlement.
The sale Of Liberty bonds also came
into the testimony OF MT: Richardson:
Bonds were bought. he said, by some OF
the companies with advance tundS anu
sfterward sold at discount.
Efforts on the part OF these compan-
les to be reimbursed by the boaId TOT
the discount losses We're not a'loweu
ond tho claims withdrawn rs were
charges OF percentage IN selling 10
cover cost OF selling campaigns.
o. 8. ships Get Poor Routes
Operators who run their own vessels
in addition - ships OF the board Said
II Richardson, usually send the gov
ernment ships on the least favorable
routes. They feel confident. he added.
that although the government shared IN
the profits II was required to pay al
the losses No employees. he explained.
.;ers retained in foreign ports. with the
result that there was frequent return
~ ships in ballast from ports where
cargoes were going begging.