New-York tribune., 1921-01-19
&. S. Ships Lose
s3,00O,OOO in
272 Voyages
col. Abadie, Ex-Controller
Of Shipping Board. Tells
Walsh Committee of Big
Deficit Since March l
Books Show Large Credit
Audis Bares Sl9O,979,4o7
Owed; Sl2O,OOO, 1000 Is
Collected i'll Campaign

colonei Eugene II. Abadie, former
..r.rsl controller OF the United States
s,;npins Board, told the Walsh Con-
vressional committee Investigating the
ss.irs Of the board, when the commit
sse resumed its hearings at the Hotel
Pennsylvania, yesterday, that the gov
,rument lost 100000 on 272 voyages
II Shipping Board vessels in the north
rrropean trade, since March /, 1920.
FIXED charges of insurance, dcprecia-
ton and return on investment were
,sksn into consideration by the witness
in revealing the loss.
Colonel Abadie, who occupied the
stand the greater part of the day and
viii return to it this morning, devoted
nost Of his testimony to conditions
prevailing in the accounting system of
sae Shipping Board prior to and after
he assumed the Office Of controller. He
defended the accounting system of the
Shipping Board and resented the at
taeks which followed upon officials and
methods Of the board as result OF the
uublicity given TO the Walsh investiga-
ton
Colonel Abadie was general COMP
sroiler Of the board until April, 1920.
He was appointed comptroller of con
ssrsction on September / 1919, and 4
lev days later also was named comp
t,oller Of operations. Still later these
t1o Offices were merged and he became
general comptroller Of the board.
Attributes MuddIed Records to War
Ascribing the disorder in Shipping
roard accounts revealed by the Walsh
Investigation to war conditions and
the haste and speed with which the
Shipping Board was compelled to work
" meet the nations defense needs.
Colonel Abadie~ said that not until
after the armistice was it possible II
locate all the vessels owned by the
government or to account for what
they had done from the time OF their
delivery. He also said that not until
February, 1920, did the accounting di
vision of operations possess complete
record of the physical operations of
ships requisitionec, constructed, pur-
chased or seized that were operated
prior 10 June so. 1919.
THE realization OF the accounting
disorder" he said, 'permitted many ir-
regular settlements encouraged ques
tonable transactions and, due 10 out
side pressure and influence, causeC
those empowered within the corpora
ton, Intentionally or purposely, to al
low or approve Of giving millions q
dollars improperly in settlements viii
some vender, fabricator, contractor OF
shipbuilder.'
Colonel Abadie testified that in order
to obtain from the ship operators of The
board the revenue earned by them but
not reported, ard to collect the cash
in their hands which had not been
turned over 10 the board. he began a
voyage account drive" beginning in
New York, on October 8, 1919
Third of Voyage Reports Made Out
Among other things. he testified, i,
vas revealed by this drive that up tc
September /. 1920 approximately IS ,oOt
accounts had been received IN the mai
section. Only $500 voyage reports ..
nssriy 1000 voyages were made up
Only total OF 172 accountings, repre-
sentlng forty three voyages, had passed
sae Haal audit section and were com
pisse with the necessary records tc
properly compile in the form of cost
statement
Even then they could not be called
complete Colonel Abadie said, "be-
cause the schedule OF commissions and
res in foreign and dependency ports
nad not then been approved by the
board
Colonel Abadie set forth the results
q aiss voyage account drive in a table
saowing the estimated figures as Of
'spteniber l3, 1920. and the figures
determined by his accountants. Some
o. these items we're:
Grass revenue. unaudited, estimated
4 so,Goo.o0O. The drive showed that
,se actual amount owing was $780,