The Washington herald., 1921-07-19
.LASKfR FINDS
ship FINANCES
NBADSNARL
Method of Bookkeeping
Deceived America, De-
clares Chairman.
WILL ASK CONGRESS
FOR s3OO,OOo, 900
Hopes This Additional
Sum Will Meet Opera
ton Losses.

Shipping Board is shocking" A. ID.
Lasker. the new chairman said last
night in announcing that he would
ask Congress today for supplemental
appropriations amounting 10 $780,
0oo. 600 for the new fiscal year.
Mr.. Lasker said IL was "incon-
ceivable that an institution like this
could be in existence and be turned
over to men 80 administer in the
shape IL is" He added that had
the books been kept .uth a view
to cheating and deceivIng Congress
and the country, they 'ould rot
have beeen kept N much different
shape than they have he~-.". lee
ords of the BOARD, he said, are On
a "deplorab.e condition. ami n it
had been a private business con-
cern. the corporation wo1tL have
been in receivers hands long age
Although Congress appropriated
only 100000. 600 for the Shippifsc
Board during the fiscal year idsf
ended, Mr.. Lasker said the balance
sheet as prepared for him hy cut
side auditors. who have been d.ss
Cfhg into the -eacords. = owS mat
there was an actual net lose 20
the government ct S3S9. 100 tG9. APP
proximateIy sSAO.OO.O0O or this. he
said. was a loss incurred in the op-
Grafton of the aeet During the
coming year the loss rom OpSis-
,ions alone. he indicated. probably
will be fISO.OOO.OOO.
Government Pays Loss.
Mr.. Larker asserted that the pres
ent system Of operation Of vessels
by which the operator receives a 5
per cent commission on gross re-
ceipts, the government paying the
losses. is as shocking as other fea-
lures Of the practices Of the board.
Last year nominally out Of the
public treasury approximately $780,
Oeo. 900 actually authorized by Con-
gress was expended on the Shipping
Board~ said Mr.. I.zsker. This -um
represented the total OF appropris-
tions. One might dedUce from this
that only 100000. 900 was used by
the board during last year. when
! I showed TO the President a few
minutes ago. the figures ! am about
to reveal to you, he was shocked and
dismayed that such condition
could exist. As a matter OF fact.
the Shipping BOARD used last year
approximately s3sO.OOO. 900. Besides
the 500. 900. 600 appropriated By
Congress. and $50. .oOO. 200 on hand at
the beginning Of the fiscal year. 81
sold assets for 5000. coo 600. all Of
which money went back into the en-
terprise. Then in addition, lit re-
ceived from operation Of vessels, etc,
/ $500. .OOO. 600. which was also spent.
this making a total expenditure by
the Shipping Board of SeSO.OOO. .00e.
This $500. 100000 received from or-
erstions when deducted from the
$3.50. 200. 900 received from all sources.
shows a deficit of $3.50. 900 600. al
though the public records show
500, zoo. 900 to be AL that had been
appropriated by Congress for the
year.
sAstcundinE Dccepticb.-
This is an astounding case Of
absolute deception ( the country
and Congress"
las I leok into the details. / find
them worse than my worst expecta-
tions. approximately 5000. 600. 600
represents absolute loss in opera
4 tions of the fleet. There was eE-
pended s1sO.OOO. 600 on construc-
tion of ships. divided as follows:
One hundred and forty-nine million
on steel ships and the rest on mis-
/. cellaneous ships. including an item
of s3.oQo.oOO for wood, composite
and concrete ships"
| Mr.. Lasker cited the case OF the
| steamer American Legion. new pas
senger vessel built by the govern
ment. as in instance Of waste. He
said that the plans for the ship were
| re-drswn several times and that the
total cost was between $4,000. coo
and $1,000. 900. although the present
market value is probably not more
than half that amount
The request for SSO0. 600 600 addi-
tional, Mr.. Lasker admitted. prob
ably would seriously interfere with
any plans for reducing taxes.
Won't Hide LOSSES.
Tomorrow I must appear before
Congress to tell them il is possible
| the Shipping Board will require up
to $500, ,0o0.O 900 for the present fiscal
year, said Mr.. Lasker. Il fear this
will throw a lot of sand in the gear
] box OF tax revision. Books are 80
absolutely incomplete and incompe-
tent that IL is impossible TO be sure
that s300.00O. 900 represents ali we
may need. We Will try the FIRST six
months to get along on 500. .OO0. .OOe
to Sl255. 900 900. We will not hide
! our losses
TT is hoped that from that sum
We will be able to pay not only the
losses Of operations, but also 20
settle finally a part OF the claims
and the law suits pending against
the shipping Board"
What about prosecutions7" he
/ was asked.
I'VE are just getting into this
matter" he replied, giving the inn
preston that they were inclined 70
hold the system and not individuals
responsible for the waste.
The new chairman's denunclation
OF the bookkeeping system en-
ployed by the Shipping Board in the
past was delivered in the presence
OF Alonzo Tweedale. comptroller dur
ing the past two years and stiII In
the boards employ. The chairman.
however. gave him and Admiral w.
5. Benson, former chairman and
present commissioner. a clean bill.
He charged IL all TO the system.
1T is "a system that lvss con-
ceiNed in the stress Of war and Was
continued in the stress OF incorn-
petence." stated Mr.. Lasker IL I
am not right. Mr.. Tweedale and his
assistants will correct me"
You are right" they omitted