Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-01-19
CHARGES SHIPPING BOARD
WITH DELUD|NG PUBLIC
Former General Comptroller Says
Statement Failed to Show
Overhead Profits.
HAD TRUNKFuL OF EXHIBITS
Tells Congressional Committee In
surancc, Depreciation, Interest
and Other Expenditures Were
Not Charged ON Net Earnings.
tBy AssocIated Press ]

NEW YORK. Jan. lS-LoSses run
ming into millions OF dollars would
be shown by the shipping Board in
the operation Of its vessels ii fixed
charges were taken into account.
Colonel T.. II, AbadIe today informed
The Walsh committee in it's invests
cation of the boards affairs. The
witness is Il former general comp
troiler Of the shipping Board.
Failure TO include these fixed
charges, such as insurance. dcpre.
citation. interest. etc. he said. made
the financial statement show profit.
when, according 10 Industrial prac-
tees. net loss would he shown
Tie witness took with him to the
committeeman trunkful Of OK
hibits. From these exhibits and a
prepared statement he read his to. I,
mony, which promises to take ur the
greater part Of tomorrow's session \
chart. which he identified as showing
the voyage accounts OF Shipping
Board vessels, substantiatcd. he said.
his statement
lin the North Atlantic trade" h.
testified, there were 212 voyages
subsequent 10 March |. 1920. wh.cl:
showed total revenue OF s26,ol7.-
1875. With voyage expense OF Sl6.-
6i5.3I2.i3. resulting in a profit he
fore deducting fixed charges OF So
371.S2l.Ga. Against these voyages.
however there, had accrued fixed
charges OF total OF Sl2,5i5. 1911.
IT is obvious that there WAS Il iJ3s
sustained on these 272 voyages OF
sS,17s.G75iS.
"a recapitulation of estimated ves-
scl earnings ana expenses for s.il-
ings. which began subsequent t.
March l. 1920. ana which voyage
terminated prior 10 September -,
1899. or total voyage OF cha:tcrc |
and lay-up periods included. .,e
shown as follows:
One thousand FIVE hundred and
cighty-ninc estimated voyage reports
on 1910 vessels produced total
gross revenue of sS6.374 35S.aS. against
which the total voyage expense should
be thrown, incurred by the operator
of $55,3Sl,25S.52. This gives net
revenue OF $50. a9S.O10.4G, which rev
onuc would he practically tie profit
OF operation from the government
standpoint
The fixed charges against this net
revenue covering both operating and
layup periods az said vessels between
the dates aforementioned was Si9,-
9lS.19i 81. THIS. from an industrial
practice. shows a net loss Was swa-
taincd o; $!A.925, 1885,"
These fixed charges. he said. are
net auditcI--o!ly estlmated-and are
of eXCecdlng value as :. guide to tu-
ture trading ventures The govern
mcrt. the witness added, in It's ac-
counting does not take into consid-
GRAFTON depreciation. hut he eoid that
In his opinion II should He a'9o sal /
lac deemed 1t Unfair TO the p.- = of
tho country tha; arcountinGs d. IL
steamships should no; show sues
charges.
Delays in obtaining voyage account,
--at times, FROM si&ty 10 ninety days
behind the ,!me they Mere contract
ed-caused like DELAYS IN aud!tius
Shipping Board accounts, he said. ne
also asserted Amcr.ca must get
away from shipping customs OF Great
Britain" or, in Ms opinion, she Unit
cd states nc,er wJutd nave a mar
chant marine. mi. inatiet. at whist
,,,,.,... 80, ..f, ,t.. ..S-..,-~ .,lf