Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1921-07-20
NEED BILLION EXTRA
FOR DEFICITS
Congressional Leaders Ad-
NIT Taxation Scheme
Must be Revised
DELVE INTO TANGLE
Criminal Prosecutions VIII be Start
ed if Audit Gives Basis-New
Chiefs Take Charge Today.

Washington, July 20.-Nore thar
200 expert auditors under the direc.
ton of Robert NJ. Montgomery, &c.
scribed as one Of the foremost ac.
countants in America, are seeking tc
unravel the tangled financial skeer
of the United States Shipping Boarc
and arm Chairman Lasker with the
information he Till need when he
submits to cross-examination by
Congress as to S3SO,OO0,O00 deficit
of last year and the S300,00O,000 an
ticipated deficit this year.
Congressional leaders were stag
gered today when they realized that
they must provide something like
$1,000, 100000 more than the original
estimates to meet the S30O,00O,OOO
Shipping Board deficit, the $780,
100000 vocational education deficit
and the $5OO,OOC,OOo to s6O0,OOO,-
600 necessary to n>eet the railroads
claims, now being adjusted. Senator
Smoot and other leaders candidly adj
lnittedthis afternoon that the Whole
scheme of taxation would have TO be
revised.
Meanwhile, it was frankly con-
fessed at the Shipping Board that
nobody knew for certain how matters
stand either as to the past or the
future. It seems certain that close
to s4OO, 100000 covered the loss last
year and that sSO0,0Gc,00o will COW
er the loss this year, but there is no
absolute assurance Of this. 1t will
be weeks, perhaps months before a
final auditing produces satisfac-
tory balance sheet.
Meanwhile, also, nobody in par
ticular is blamed by the present ad-
ministration. All the blame is laid
upon the system and the emergency
under which the system was created
Former Chairman Benson, who was
reappointed by President Harding
and Frederick I. Thompson, also re-
appointed, are not at fault, it is earn
estly declared. Admiral Benson, it
was recalled today, served for
months as the whole board, the Sen
ate refusing to confirm his asso-
ciates. During that time he was
overwhelmed with official detail, be-
ing compelled, for example, to sign
every travel check.
Mr.. Thompson escapes blame, It
is added, because he was or the job
only few weeks, not having been
confirmed until -eappointcd. Even
apologies are made for Alonzo
Twccdale comptroller Of the board,
who was presumed to know the state
ofaffairs, but who frequently admit
ted in the past that he was unable
to give accurate data regarding de-
ficits. Mr.. Tweedale has been con-
tinued in office, but not formally re-
appointed, it became known today.
Although Chairman Lasker gen.
crously excused his predecessors
personally, charging the whole un-
fortunate mess up to the System,
it became known toGay that the au-
dit now going on might reveal the
basis for criminal prosecutions and,
If so, the records would be placed
in the hands of the Department of
Justice for action.
At the Capitol there is wide diff
ference of opinion as to what should
be done. Congress is shocked 10 find
it necessary to provide s30O,O00,OOO
perhaps more, to subsidize the Gov
ernment owned fleet during the COM
ing year when it has been led to oe-
lieve by White House assurances that
there would be no more deficits
Some legislators are indignant
enough to junk the whole fleet anc
retire from a bad bargain, but they
are in hopeless minority. Others
including Chairman Jones, Of the
enate Commerce Committee, insis'
that it is necessary to meet the re
curing deficits in order to save the
81, 100000 investment the Gov
crnment has made in its merchan
fleet.
Democratic legislators argue tha
the whole purpose Of the shout anc
hurrah about the deficit last year i:
to justify the defic.t for the curreH
year.