The New York herald., 1921-01-18
SHIPPING INQUIRY
HEARS OF GRAFT
IN WHARF RATES
Craft Allocated by L. S.
Shipping Board Forced
to Pay Heavily.
STATE LAW is IGNORED
Renewal of Hearings Here
Marked by Revelations
Of Capt. Parker.
MORE FAULTY BUILDING
Witnesses Tell of Losses to
Government Caused by
Careless Work.
STATE LAW is IGNORED
MORE FAULTY BUILDING

Excessive New York wharfage
! charges. exacted by the shipping con-
Germs to whom piers are leased by the
municipality and the State, were de-
/ scribed yesterday as one of the evils
against which the United States Ship
! ping Board has to contend.
Capt Oscar w. Parker. United
States Shipping Boards marine super
intendent for this district, was one of
the witnesses examined by the Walsh
Congressional Committee, which yes
terday renewed hearings in this city.
I'VE have here said he, "a bunch
of privateerG and buccaneers in the
docking business who charge us any
price they like. Since 1917 all the dock
rates here have been exorbitant. The
State and municipal rate fixed for
ton for the first 200 TONS, and one-half
cent n ton for all tonnage in excess
thereof, computed upon the net ton
mage of the craft. But the State and
who exact from us all they can get.
On one of our ships we are paying at
present $50 day, WHICH is $14O day
i'm excess of the city rates"
The witness said persons controllin;,
piers imposed upon Government owned
ships more than upon privately owned
craft He tolo of one wharf concern
which submitted bill for sl.4oo. but
which, after some argument on his
part, had cut down its charge to $500.
AS rule. he said. the operators and
managers to whom the Shipping Board
allocates its ships pay all these extrava-
CANT charges without question. knowing
that under their agreement they must
be fully reimbursed by the Government.
AS q corrective, the captain said. ex-
cept in cases where ships are actually
either loading or discharging, he is now
tieing them up in groups and anchoring
them in out of the way places. such as
Jamaica Bay Let their piers remain
idle for n while" said he. 'and these pi-
rates soon will come to their senses"
When he was asked by Representative
] Walsh whether he thought there was 4
| collusive pool among the men controll-
ing these wharfing privileges, Capt.
I Parker replied that he thought there
I had been, though he could not swear to
il from personal knowledge. But
think now" he added. 1--WE are getting it
pretty we'll broken up"
( Fresh Graft Revelations.
on the subject OF defective workman
ship Capt. Parker gave some surpris-
ing evidence. OF the craft built by the
7 Submarine Boat Corporation OF Newark.
/ he said there were about forty which
were so defective that the Shipping
Board had to expend upon them from
{ $1,000 to $4,000 each to make them
reasonably seaworthy. Often these de-
fects had been passed by the Govern
ment inspectors OF the Emergency Fleet
Corporation unchallenged and they were
not revealed until after the vessels had
made an initial voyage.
Under the present system, Capt.
Parker testified, fraud and graft in the
purchase OF ships supplies in foreign
ports are common. II not quite general.
In shipping parlance this, the witness
explained. is what is known as cum
shaw" which Is n Chinese word signify
ing commission or "rnke-off." In many
instances the board is imposed upon in
this way by the representatives of the
operating corporation. Sometimes IL is
the ships captain who is in fault. some
times the steward. and sometimes the
chief engineer, as the system OF Cum
shaw" applies alike to the purchase in
foreign ports of all ships supplies.
'Tn all these departments" said the
captain. the taking OF graft has been
fragrant. [ recall one specific instance.
that OF the steamship Deal. Capt. Rupert
Wry, in which the Shipping Board In
CURED n loss of $4,000 in a single fuel
purchase had several arrests made in
that case, but they let the men get away.
/ This 'cumshaw' evil is one that has
been generally prevalent In marine
circles but never so much as among
ships OF the United States Shipping
Board. When I first came on this job
more than three years ago we had to
discipline and even dismiss some ships
masters and others for this offence. but
now conditions arc improving. ! think
we have them scared"
wouId Put All Under Bond.
/ Capt. Parker thought Il would be n
good thing IL all ships masters stewards
and engineers were to be placed under
/ bond As a radical remedy for mary
! evils. however, he said he thought the
/ law should be changed. Instead or the
board turning over vessels under bare
ship" contracts to the operators 20 whom
/ they are allocated. leaving the operating
/ concerns TO man and supply them. the
] Government would be far better pro-
/ tectcd he thought. II Il should place It's
own men aboard its ships. policy which
I had been successful with the old line
private companies
"Our ships should be manned and
stored by our own men--good stalwart
I old American seadogs." said he. How
I does It work out now7 a ships master
I makes n successful and profitable voy-
age and returns 10 his home port. In
I his absence he finds his vessel has been
allocated 10 some other operating con-
1 Germ. They tell him they don't want
( him any longer. az they have n man OF
\ their own for master. So our captain
/ finds himself without command and
I out In the street. Now the very next
I time he gets n ship. isn't there n strong
temptation for him. by taking petty
graft such az ! have described. 10 In
demnify himself for the time during
which he was idle?
Edward G. Burke of Brooklyn. busl-
ness agent FOR tho International Brother
hood of Boilermakers. but previous
IS employed as a foreman riveter by
the Standard Shpbulding Corporation
at the Shooters Island yard, found 80
4 Al .,.H I.. 4