The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1921-07-01
MERCHANT
ship JOKER
IS EXPOSED
II Has Cost Taxpayers Mil
/. lions; lnCites Private Gain
at Peoples Expense
BY J.. r. RICHARDSON

BN j. u. kiCuAkDsoN
SAN FRANCISCO. July Ibid
you ever play quarter ante with the
Joker wiidg
Wen. It's SOME game-and costly
~to the novice. The Joker can be
called an ace. or a deuce, diamond.
or a spade-the Joker does a lot of
things to dcpiete your pockethook.
In congressional bills the ''joker'
Is a little. innocent.sounding word
clause or paragraph which. after the
bill becomes law, puts the law into
reverse gear. Sometimes II makes
law hackfire terribly.
l have hunted 10 its lair. iassocd.
and now lead before the American
taxpayers the widest. most ferocious
little "joker'' in captivity. IL has
cost and Is costing the taxpayers mil
slions--and here IL Is:
The corporation appoints the
agent as It's agent 60 manage.
operate and conduct the bush
ncss Of such vessels rs IL has
assigned OF may assign TO the
agent
Misunderstanding little rascal
this joker-isn't II.
II turks in the mass OF legal YER
hlage in the shipping board manag-
ing and operating agency contract
under which YOUR ships are oper>
Tated--costing you TWO MILLIONS
day. by the way.
HOW JOKER
PROTECTS OPERATORS
This Is the way. the -jokcr" Is
srained TO work:
Under tho penal code-federai Law
---any agent OF the government con-
tracing for government account
sith any company in which the
:. agent has any pecuniary interest. or
HON which he derives any profit.
Violates the code. and Is subject to
fine and imprisonment In the federal
pcnitentiary. BUT
Tho supreme court Of the Cnited
States has ruled that the emergency
fleet corporation rs a PRIVATE
CORPORATION. And the Joker"
makes the operator OF YOUR ships
I the agent Of the fleet corporation.
which In turn acts for the shipping
board. which Is a branch Of the gov
sernment. NOW
II the operators and managers Of
YOUR ships were agents OF the ship
ping board they would come within
the penal code. II they established
Las many OF them havc-fuei com
panies. water companies. launch and
towing companies. ship-chandlery
companies. repair companies. brok'
ing agencies. etc. on the side. and
then made contracts - with them.
selves ordering from themselves
supplies for which YOU pay. check
Ing their own work. for which YOU
pay. approving their own bins. which
yOU pay. with the SO per cent profit
10 supplies. the so per cent profit In
repair work, the 10 per cent profit
= materials. the 500 per cent profit
N water. the 100 per cent profit on
onei they would be liable to get into
serious trouble. BUT
DEPARTMENT OF
JUSTICE HELPLESS
Right here the little Joker with
bristles standing and vicious teeth
showing. jumps right out OF it's lair
In the managers and operators con-
tract and banks at the department
OF tustice--''You can't touch my boss,
he's not . government agent"
Alfho the supreme court holds
the emergency fleet corporation
10 be- . private corporation. the
shipping board still permits the
fIect corporation to handle the
bosts and nazno the operators rs
the fleet corporations agents.
All YOU do h TO pay the bill
II a. ship master. chief engineer
mate or steward refuses 10 approx
bill rendered the operator by on
or more of his subsidiary companies
the ship gets new officer and ths
offending one hunts new job.
HELPING sCUTTLE
MERCHANT MARINE
Since the operator gets his
under the percentage fee terms
Of the agreement whether the
ship carries cargo. sails In bal
last. or y laid up for repairs,
he does not have TO worry II her
round trip shows loss on the
voyage. YOU pay the loss--and
his fee beside II his fee Is small.
he can put the ship on the dry
dock. or revictual her, or refuei
her. do lot Of things. In fact,
to run up his profits thru sub
sidiary companies, and all the
while the little Joker" stands
guard that no enraged taxpayers
may sneak up unawares and
wreak the vengeance Of the law
on this type Of operator.
After the Walsh committee inves.
figation OF shipping board operations,
the board said II was going to chic.
reform this vicious little Joker" pull
II from it's lair in the legal wilder.
ness OF words and bury II forever
but agreement No. 4 still harbors the
Joker"
Many times has this Joker BIT.
ten the taxpayers - and each bite
cost a lot OF money. And, healthier.
happier and more vigorous than ever
before. the Joker" keeps gnawing at
the bottom Of the American mer.
chant marine. as the fleet settles
deeper into the slime OF the mud.
flats. and the people pay the bills
TWO MILLIONS A DAY.
Dividends Declared