Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1920-11-18
SHIPPING 30 AR D
POOR ACCOUNTANTS
Handled Billions, Says Witness,
But Had Not Even a Balance
Sheet TO Show What or Where
It's Funds Were


disclosures tending to support what he
declared to be a complete lack of ade-
quate accounting system" in the handling
of government funds, were made here
to-day by Martin J. Gillen, a witness be-
fore the Walsh congressional commit
tee investigating the affairs of the Uni
ted States Shipping Board. Gillen was
a special assistant to former Chairman
John Barton Payne.
Tho name of President-elect Harding
was brought into the record when Gilen
snid nc had informed Senator Harding
tina. 1t was tho duty of Congress 10 see
that only big men. capable of hardling
affa!rs entrusted to them, be appoint ed
20 sll departments. He said appointments
should be confirmed by the Senate only
when 1T ia determined that the men
named are capable and efficient.
/ 1T has been conceded" he said, that
but fow men connected with the Emerg-
ency Fleet Corporation had an expert
| knowledge Of accounting" and he also
said that It. was due to complete break
down Of the accounting system that the
board had it's main troubles
Figures used to-day by the witness ran
into billions OF dollars" he testified
that one of the first acts Of Chairman
, Payne when he discovered the condition
! of affairs, was to go to the secretary
| of the treasury and secure from him the
! services OF Alonzo Tweedale whom h
made treasurer of the board. This was
done about August 1919 and he testi-
fled that among other conditions dis
closed by the new treasurer were tht
following.
NO BALANCE SHEET
There was no baIance sheetsshowinf
what banks its funds were deposited.
There was no record in the hands Of
the board of securities valued at NOR,
than s2l0 Ooooo0 which the board held
The securities, he added. were found II
the vaults of a trust company in Phil
adelphia. where they had been PLACED
for safe keeping.
There was no record showing in detail
how $2.5O0, 900, 900 had been expended up t.
that time
There was no record Of account Will
operators of Shipping Board vessels no
no way of determining how much none,
belonging to the government they ha'
in their possession
Prior to Mr.. Tweedale, he said, tn
treasurer of the hoard was only "aI
ssuer of checks" oft-times without sup
porting claim vouchers.
AN UNvoUCHERED BILLION
On November this year the wtnes
said, of the sum of 50 800. 900, 900 expende
there had been submitted to the treasure
vouchers to cover only 2.7oc 900, ,0of
Vouchers representing disbursements o
$500. 100000 had been excepted to- by tn
treasurer because of lack of suffclnt sup
. porting data, and there was yet to b
presented vouchers amounting to s1,lO0
, 600 600.
Vouchers and data to make possible tn
, accounting SO far obtained, he testified
have been obtained by going out into tn
field. starting with bank accounts of var
ious firms and persons with whom tn
board and the Emergency Fleet Corpora
ton had transactions and tracing &C
counts back to the board. In this wor
: he said a force of 800 men had been er
gagged.
In summing up his evidence Gille
said the Shipping Board had gone ou
and obtained the best possible men
handle It's ship construction and II
y operating divisions, but it had failed t
D get a man big enough to establish an
carry out department of eiiicen
y acc ountng.
. NO EVIDENCE OF DISHONESTY
lie made it plain that he had foun
@ no evidence of dishonesty on the part c
4 any official of the board-"that they ha
done their very hest"-but the energie
of the board had been concentrated o
o getting ships and getting them into Opera
s tion. He also said comptrollerS Of til
@ hoard and the Emergency Fleet Corpora
8 ton operated practically Independent
the treasurer of the Shipping Board II
s further said an order of Congress
= July /, 1918, for an accounting of boar
n funds to the national comptroller ha
d not been complied with when Mr.. Tive,
% dale took charge, because OF the bad cor
20 dition of the accounts. Warrants Il
y money Issued during period of tw
f ears are still being picked up all ovs
he United States, the witness adde
t He further said that about 81 ,ooo.oo0,0 o.
e in pay roll vouchers are yet to CON
@ through TO close up accounts.