Great Falls daily tribune. [volume] (Great Falls, Mont.) 1895-1921, 1920-11-21
BILLIONS SPENT
BY SHIP BOARD
LACK APPROVAL
u. S. Treasury Reveals
Vouchers Unsupported
by Proper Papers.
Disregard of Law Is
Hinted in Comptroller 5
Official Report.

Washington Nov. 20-Nearly one
half of the total disbursements of the
United States shipping board Emergency
Fleet corporation over a period of II
months, amounting to more than two
billion dollars, were unsupported by
proper vouchers, according to the audit
OF the corporations accounts submit ed
to Secretary Houston Saturday by the
comptroller of the treasury in his an
nual report.
The audit was made by direction Of
congress for the period of October, 1918.
to February, 1920, and showed that
total disbursements of the fleet corpor-
alton were S2,273,915,213, of which ex-
ception TO the payment of 81, 1ss4 324,-
243 was taken by the comptroller be-
cause of the lack Of supporting papers"
Subsequent production of supporting
papers, however, the comptroller said
resulted in a credit to the corporation
of S7O,625.S 1893. leaving balance as of
February of S1,113. 700, ,345 disapproved
by the auditors.
Si,500,000,000 Disapproved.
The comptroller presented figures
only up to February, but Martin J. Gil
len. former special assistant to the
chairman OF the shipping board under
Secretary Payne, declared before the
congressional select committee on ship
ping board operations in New York last
week that up to March first $1,000. .000.-
600 had been submitted for the audit and
payment Of 81 1,500,0u0,000 had been dis
approved because the vouchers were not
supported by the necessary data.
Comptroller Warwick declared that
'at least 25 per cent of all vouchers
inl h.,
or other papers explaining or justifying
the payment"
1T would appear" he added, cas- if
the Emergency Fleet corporation consid-
cred the approval of the resident or dis
trict auditor as sufficient authority or
justification for a voucher especially in
reference to impost funds"
Impost Funds Explained
Impost funds are explained as funds
established by corporation and set up in
banks adjacent to the plants Of the ship
and expenditures were made
from them under general orders Of the
Effective October 1, 1918, the comp
troller continued. the corporations az
counts were to be rendered in accord
ance, with the regulations promulgated
by the treasury but the audit Of the
accounts of February. 1920. would in
dicate that strict adherence thereto
has not been made. Little improve
ment, if any. is noted in the 1920 ac-
count over the previous period"
Hopeless Task.
Despite the fleet corporations orig |
nal desire to obtain m audit Of its ac- |
counts BY the treasury, Comptroller |
asserted, THE corporation ap- |
1arently found it well nigh hopeless to |
3ring together the scattered supporting |
papers necessary to q systaluized rem
lering Of its accounts
''At least" he continued mo accounts
we're submitted in answer to the re-
Iuest of the department until he in
erchange Of correspondence on the
ubiect promised to reach an acute
tage.'
Congress Finally Acts.
The audit was originally asked by
hartman Hurley, Comptroller Warwick
explained. but was declined because of
he limitations imposed on the treasury
ress directed the secretary of the
reasury to make the audit.
while there was no reason to i'm
une other motives for rhc delay than
hose already afforded by the difficult
les of bringing order out OF conditions
ot hitherto required to be orderly in
ccordance with given standafds," the
omptroller continued, the situation
resented began to look like disre
,ard Of the law, however, excusable.
l viewed it as duty de
diving upon my office to recommend
0 the secretary Of the treasury that
ONE action be taken to exact compli-
nee with the law"