South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-11-14
REP. GALLIVAN
IS NAMED IN
U.S.. INQUIRY
Witness Says Congressman In
terfered With Shipping
Board Sales.

NEW YORK, Nov. 13.-The name
Of Rep. James A. Gallivan Of Massa-
chusetts, was brought into testimony
offered here Saturday in the Walsh
committee inquiry into the affairs
Of the United States shipping board.
Robert L. Kline, special represen-
tative of the boards supply and
sales department, was testifying as
to methods used in disposal Of sur
plus material In the course Of his
testim Ony he described an effort on
the part Of his department 10 pro-
cure what he said was an advantage
Gus contract for disposal of SCRAP
material A bid for its sale on six
months supply basis" at a rate of
80 cents a ton over the market
price was accepted, rejected. accept
ed again and once more held up
because an official in Washington
discovered he had acted without au-
thOrity, he said.
Receive New Bid.
In the interim, another form Of
bid had been offered. The second
bidder alleged he had been discrim-
mated against and, according to the
witness the board secured from Mr.
Gallivan a telegram complaining
that this bidder, one Of his constitu-
ents, had not been treated fairly
This first tel egram, the witness
added, was soon followed by an
other, which he termed sharp de-
handing an investigation and
threatening 10 take the matter to
the floor Of congresS
The tnsistepce OF Mr. Ciallivan. the
witness said, no doubt caused the
home office Of the board to give the
controversy over the scrap" con
tracts quicker consideration. At
any rate he said, ne forwarded the
board "A complete file Of the case.
The delay in determining the sue
cessful bidder however. cost the
government money he declared, for
at that time, last June and July, the
market for scrap material was much
higher than IL now is.
Scrap Material.
Scrap material sold by the board
was disclosed by the witness testi-
mOny TO include everything from un-
used parts, bolts. packing for steam
pipes, and TO even discarded uni
forms Of the guards used during the
war TO protect snip yards and plants
He also described details Of how this
material was assem- bled, invOiced
and eventually sold.
From ship yard materials and con-
tests over contracts for scrap" the
hearing in its closing hours today,
drifted back to operations.
Capt James A MacGregor Of Bal
timOre now general manager for
the South Atlantic Maritime corpo-
ration, but formerly district agent
for the shipping board at Savannah
and Wilmington, was called.
He related instances Of delays 10
shipping board vessels. alleged inter
locking organizations, delays in re-
pairs TO ships and cOngested harbkrs.
which he said cost the shipping
board money. He admitted, how
ever, that incidents similar to those
he described. had occurred with
private companies. but not 10 such
an extent as they did with the gov
eminent operations
Shipment OF Resin.
He told Of a shipment of resin
from Savannah 70 Havana which
could not be unloaded at the latter
port because Of congestion It's con-
signee raised a vigorous complaint.
and ne was paid for the resin by the
steamship company which carried il
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