The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-12
BENSON'S AID TELLS
OF VAST SHIP GRAFT


the operation of ships under contracts
No / and No. 2.
Chairman Walsh asked the witness II
he knew of any improper expenditure OF
funds. Commander Clements said that
he had handed to the comptroller of the
Shipping Board complete itinerary of
ships allocated to the Seager Shipping
Company. with a request for a statement
of that FIRMS accounts. After an ex-
animation of he books, he said, 1t de-
veloped that the firm had $4S, 900 to the
credit OF the Emergency Fleet Corpora
ton against balance totalling $4,000.
The difference was not on hand. due to
unsolicited freight bills. advances to
masters OF ships for current expenses and
accounts In the hands of agents.
Commander Clements said he cited this
case to show that large accounts were
left outstanding. adding that they Ger
tainly shouldn't have been"
The case of the France Canada line
also was cited. This line, Commander
Clements said. had $40 900 outstanding
and had paid over $4,000 TO an allied
concern that had a claim against the
board without even going through the
formality of putting the money through
the Government trust fund. At the
time this discrepancy was discovered
he said. the France Canada line was an
applicant for an advance from the Gov
eminent
Taking up the charges OF graft and
overpayment In the purchase of sup
plies and materials for the boards YES
sells, Commander Clements said he
thought whatever evils existed had been
cured by the adoption Of new form
OF centralized control three or four
months ago. Admiral Benson. he said,
designated one OF his assistants. a Mr.
Bowen. to devote his time entirely to
purchases. When a representative of
the Shipping Board Is placed on each
ship overcharges and graft should be
reduced to minimum. the witness
said
bought at the Highest Prices.
Commander Clements told OF a prac-
tice under which Shipping Board vessels
formerly would make large purchases
of supplies at Havana when coming
direct from the United States, despite
the fact that Havana Is the most ex-
pensive port on the Atlantic. Incl
dentally he said that most OF the Cuban
freight was carried on Shipping Board
vessels.
Chairman Walsh asked the witness II
1t was true that the Shipping Board
realized only 1874 cents for each dollars
worth of property sold. Commander
Clements replied that, though he had
not had anything to do with that end
Of the business. he was Informed by
officials that II was true.
Many of the abuses referred to In the
report of the investigators were due to
the emergency conditions existing, the
witness said.
But with the signing of the arnis-
tice all haste and emergency ceased to
exist. did It not?" asked Chairman
Walsh.
Commander Clements said he thought
that WAS true.
the post-armistice days is there any
reason why they could not have been
corrected?"
Excepting In the matter OF per-
sonnet" replied Commander Clements.
Until the passage OF the Jones act
employment In the Shipping Board was
looked upon as n temporary occupation.
Prior to this enactment no inducement
whatever was held out to the young
man who sought advancement"
Some favoritism may have been shown
In some instances In the ALLEGATION OF
ships, ne said, but declared that this
evil had been eliminated. He said the
greatest cnre Is now being used In maxi
ing ALLEGATIONS.
After the formation OF the Shipping
Board, Commander Clements said. keen
rivalry existed between the old COM
panies operating ships of their own and
new companies operating Shipping
Board vessels. He received n complaint.
he said, from Frank c. Munson, presi-
dent OF the Munson Line. In which IL was
charged that certain 'fly by night OPP
orators at Havana were getting much
better despatch on their vessels than
the established lines. He said an in
vestigation showed that bad conditions
at Havana were due largely TO COM
panies which operated their own vessels
In addition TO some belonging TO the
Shipping Board. and that they gave
their own vessels the preference.
100000 Tons of Shipping.
Representative Henry J. Steele of
Pennsylvania questioned the witness
about the actual cost OF building the
ships and operating them. He was In
formed that about 100000 tons OF ship
ping were turned out. and that Rect
OF approximately 100 vessels was oper-
ated The gross cost per ton, inciuding
the various llefIlS VI Wach1t ~N'hhNN -
favorabry with the cost Of ship con-
struction In England.
Commander Clements agreed with
Representative Steele that the report
submitted by Mr.. Fisher and Mr.. Rich
ardson was n critical one. However, he
said he thought he had seen one passage
which commended the board.
"I have not seen that one." replied
Representative Steele.
Commander Clements said that the
conduct Of the two investigators who
prepared the report had been nj all
times courteous and helpful. The In
vestigators, he said. have made no at
tempt whatever to hinder the WORK OF
the board He said that he was not
familiar with the conditions which led
&c many of the charges He described
his duties as being chiefly concerned
with the establishment OF new trade
routes and gathering OF commercial
statistics. He said he did not know
what was to become of the steamship
Leviathan. The Hog Island Shipyards.
he said probably will have to be sold