Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-11-10

thus thus realized used "for plant pur.
They (the coptractors) then nut IN
claim against the United States shin.
ping board, Emergency Fleet Corpora /.
ton, for the losses thus incurred" de.
claretl the report.
Laid TO Mslsdministration
Going into the matter of salvage Of
enippuiiding plants. uncompleted hulls
ana material and stores, 'the report al
ieged that It was asserted by persons
In position to know" that the sale Of
the millions of dollars worth OF mate !.
rails owned by the feet corporation
had netted no more than 1915 cents on
the dollar at q time when the Shipping
hoard at other points was purchasing
the same materials In the open market
at prices in advance of the original cost
prices Of the materials sold.
However," said the report. y "tbe
questio seems to be one Of maladminis.
tration, rather than one of fundamental
conditions, so far az the limited returns
from the sale Of these materials is con.
cerned."
The report said that "the Bardee
CO. was trying to purchase under a
blanket contract all supplies and stores
OF the feet corporation and charged
that one of the officials OF this company
was also an advisor to the shipping
boards cancellation and claims board. .
The. shipping board announced the
sale OF surplus material on the Pacific
coast valued at about $1,000. .OOO 20
.Bardee Brothers, Ipc.," Of New
York.
Large Sums Made by Hull Removals
As to building contract cancellations
and hull removals, the report asserted
that the shipping board entered into n
contract with George r. Rogers TO re.
move hulls which we're on the ways In
an unfinished state at the time the con
tract was signed or to obtain from IN.
builders or the owners of the land upon
which the hulls and ways rested re.
lease from further liability.
"For some reason" said the report.
"the United States shipping board saw
At to make a contract with Rogers TO
pay him $4,000 per hull for each bull
thus handled by him. The result has
been that in many cases the United
States shipping board has paid an addi !.
tional $4,000 per hull to have Rogers
sell the hull or give 1t away, In many
cases the cost Of the hull representing
found NO difficulty in selling these hulls
at a very fair price, which revenues re !.
vert to Rogers, In addition to which
he collected from the United States
shipping board Emergency Fleet Cor
poration, $4,000 per hull fee."
Enormous Profits by Lumber Sales Co.
The report said the contract entered
into with the American Lumber Sales
Co. SHOULD be gone into by this com .
mittee. because 1t presents some fea =
lures that are questionable, to say the
least" The report then goes on to
charge that the company was to. some
extent composed of persons previously
engaged with the fleet corporation, 2
that 1t purchased materials from the
corporation at stipulated price and
sold these materials where is as Is" al
an advance sometimes of more thar
100 per cent over the purchase price and
that in many cases 1t appeared that the
company used feet corporation plants
and equipment ito reap enormous
profits from the sale of materials which
It had purchased" from the feet cor
poratiop.
Scrap Material Contract Criticized
The contract with the Southern
scrap Mdtcrlal CO., Whlcn, IL was
stated, had been abrogated. also was
criticized. 1t was charged that the con-
tract. was made by an agent Of the
knowledge Of his home Office" and that
materials in many cases not declared
surplus were sold to the company al
prices far below the market quotas tlons
at the time Of the sales.
The report further charged that thu
organization Of the boards supply ant
sales department. particularly its por
representatives, was used by the com
pany to sell materials purchased from
the shipping board and that in man,
cases the port representatives sole
these supplies 'for perhaps 100 to 12l
per cent net profit" to the compan!
and that Certified checks for same