Every evening, Wilmington daily commercial., 1921-01-22
oILLEN's REPORT ON
Continued from page !


Shipping Board Emergency Fleet Cor
poration
In this statement MIR. piez claims |
that etataments I'm Mr.. Giilen'a report |
do not square with the facts In "a |
pinple vital ease In which ha INDUCED |
I'm criticism concerning the division OF /
construction: TINT Mr.. giilans state
ment that there was interference be-
tween management and trustees In /
placing Of contracts is wholly untrue, |
thnt Mr.. Gillen iH guilty Of gross mis- |
statement of facts regarding the Fleet |
Corporations 1850. 100000 mortgages |
and securities and that Mr.. Gillen's |
statement of lack of an accounting sya- |
tenn is wholly wrong,
Mr.. piez'n statement further claims |
that Mr.. tiillen's report regarding the |
Fleet Corporations check against au-
thorizstions and appropriations Is abb
solutely wrong. that his statement on
control and imprest fund has no foun~
tiation in fact and that the destructive
effect of Mr.. gilen'a testimony has
aeriously impaired public interest In
the establishment Of an American Mer~
chant Marine. and practically destroyed
the market for chipping securities
Mr. pieza statement says that ships
were built 10 meet the necessities OF
war. not TO establish merchant ma
rtua: that the Emergency Fleet Cor
poratfon delivered 4Te ships before the
arfnfstiee was signed: that the task was
to- build ahipa faster than submarines
could sink them which was q war as
| stgnment and not peace undertaking,
aud that the building of ships was con
| Quoted I'm a systematic ana business
| like manner.
I 4. 4G.e.4 kzsfs
| ftev had TO build wooden ships know
| ing they would be serapped when con
ditions got back 10 normal: that be-
cause Of the demand Of the War de-
partment for more ships that r. ~
| Hurley. Banbridge Colby and himself
requested Charles NJ schwab 90 join
| the organization and that General
| George w goethals inaugurated the
accounting system.
Mr.. plpzs statement says that he
suggested I'm December. 1917 that no
| further contracts for wood ships be
let. but the Board ~ Trustees was
Obliged to keep on building when pres
sure for anything that would float no
came SO intense in tho early spring of
1918 The claim SAVE that there 80 =
not voice I'm or out # Congress that
was raised IN protest ~ that time
against continuation ~ the wood
ship building program.
Wood shipH represent legitimate war
expense. according to the statement
which adds They should he iunked
aud the cost written off. This nation
cannot expect to realize salvage q
100 per cent on war construction We
,n,,st recognize that ships, like merchan-
disc bseotue shop worn when held too
long"
The statement says there was some
pa y roll i,adding. Some petty dishonesty
Int no more than there would % y
Yards under private controi.
AR ptaz continued This Inference
ar, the usrt Of the public is in 2 large
tnea sure the result ~ the wild state
meuta made hy Mr. Gillen concernins
rha methods OF the Fleet Corporation
and To the general statements IF graf
and eorruptiur contained in the Fisher
flehardson report. Tho public doc
/ not diHerentiate between the division
nf construction from that &c operation
and concludes that because there wa
notify graft among minor ships offer
! IN tho vtctualling and repairing @
! ahipH in operation that the entire struc
: tnre Of the corporation from top E
3 bottotn was honeycombed by a hk
condition
! Graft in ,ahip operations has from
! time immenhrial BEEN considered on
! of the prerequisites Of petty officers an
ta n difficult disease to eradicate. 1
has no place IN the operations Of a
c American fleet and should be treate
I with an iron hand.
But IL is to be regretted tnat IN
:. Fisher Richardson charges are couche
e in such general terms that they nav
: besrneared the whole structure OF IN
e SHINING Board and Fleet Corporate
2 with the slime Of suspicion. Many
: the charges should have been made |
the police courts rather than IN 3 repoI
of such Importance.
Mr. Piez's statement begins py &C
s dressing Mr. Joseph Walsh. chairman
n and says:
# THE effect of the testimony thus "a
! presented before your committee ha
y been to seriously impair public interei
m in the establishment of an America
r. merchan marine, 10 practically d'
10 stroy the market for shipping secur
~ ties. and TO make the already difficu
10 task of the United States Shipplr
Board much more difficult.
ii This effect has been produced
I mart bv sensational head lines. in pa
~ hx a lack of apprec iation of the cond
= tions attending the construction
,d ships. but more BY the general co
IN demnation of methods on the part
as some important witnesses who indul
er ed in sweeping criticism without asce
as tainment of the facts.
w Il recognize the desire of this cor
Sc. nlittee to develop some really co
struetive criticism and suggestio
pt through these hearings, so that [
d. cause OF the American Merchant NJ
tlv rine may be furthered. and the vess
e, created in the emergency and use
on and profitable employment in the ca
riage of American products.
in Without public interest and pub
Ity confidence this result cannot
achieved. and it is on that accou
ex- that. with your consent, l have p
vas pared this statement.
-er, 1T is not offered as vindication
at either the Shipping Board or the FL
ith Corporation. but it does, | hope, p
hat sent matters in a fairer perspective;
24 does, | believe. absolutely refute
false and irresponsible statements
one of your principal witnesses. sta
ments that have been the cause
much adverse public opinion; and
ng contains some observations and s
pts gestions( that may prove of value
,eef your committee and to the cause OF
er; Merchant Marine.
i.25 After quoting from Mr.. Gillen's
gast -. -, lrYp,p suna contracts aNar