Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-11-16
TELLS OF BOARD
CONTRACTS LET
ON DROP MART
Shipping Witness Says Low
Bids on Asbestos Were
Ignored.
HIGHER-UPS INDICATED

NEW YORK. Nov. 16-It was a keen
Iy expectant gathering OF spectators that
crowded the courtroom in the Federal
building today where the Congressional
Investigating Committee is delying iatO
the activities Of the United States Ship
ping Board Reports have been making
the rounds for some days that Chairman
Walsh has some surprises in store. The
names Of nationally prominent men have
been mentioned as probable witnesses.
With z mass Of evidence already offered
. tending to bear out the charges Of graft.
waste and ineficiency, the report per-
sists that important higher-ups are to
be summoned to the stand.
Today's first witness was Stewart
Dickson Of New York, head OF an ashes
tos manufacturing company. He testi-
fed that exorbitant prices were paid for
asbestos packing for shipping board YES
sells and declared that the Government
contracted for more than s3O0O,O0O worth
Of such packing on a falling market. He
told Of reputed favorftism in awarding
bids, and specifically charged that a con-
tract let in Baltimore for February and
March asbestos requirements was far in
advance OF the market price"
II was q bidder" Dickson said, but
although my bid was so per cent less 1t
was rejected
For the same quality Of asbestos
cloth - asked Chairman Walsh.
Yes" answered the witness
The award for the February and
March needs was for packing al S1.6O
a pound" said Dickson. Ny bid was
at S1-20 a pound. The market price was
$1.25 a pound. Since then the market has
fallen to 95 cents a pound"
The witness said that when the ship
ping board awarded the present annual
contract, It practically gave a monopoly
70 the firm which got the contract, al
. though there were several other bidders
who put in lower prices than the offer
finally accepted.
who got this contract" he was asked.
"The Anchor Packing Company OF
Philadelphia"
FORMER sLEUTH
. TELLS STORY.
William r. Morton. former special in
vestigstor for the shipping board Who
prepared the cases at Seattle for the De-
partment Of Justice told II case against
the Seattle Construction < Drydock Com
psny which, he said. was ignored by
agents Of the Department OF Justice
Morton said he found evidence Of ship
building contractors frauds
AT Norfolk. Va" said the witness, ~
recall there was a firm called the Union
Iron Works. whose plant could be
moved in q truck. their whole personnel
consisting Of hfty-two men. However
they had ffty-eight on their pay roll
Il also found there was a large ship
building concern at Norfolk. which ex-
listed on contracts sublet by the Union
Iron Works
GAVE BACK SHARES
TO COMPANY.
Lester Geor-e, government shipbuild--
Ing inspector at Norfolk. who stood veu
With the shipping board office, received
shares in the Union Iron Works, but
after keeping them four months, returned
the stock when our Investigation got
under way"
Much graft was uncovered at Norfolk
in a three days Investigation the witness
said. adding, but we were called In"
He told II his investigation resulting
In the indictment OF E. D. Wood, brother
OF the collector Of the port ut Norfolk,
for em6czzie1ent of =, 100.
Unskilled men were put on vessels, the
witness said, were kept aboard day and
night, spending their time shooting
craps and drawing as high as $500
man a week"
John F. Richardson. special investiga-
tor for the investigating committee,
charged inefficient checking by ineffi-
cient men and the hiring Of inexperi-
enced aliens in place Of skilled painters