Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-06-18
[SMAY Make G|FT|
lFy15,0)0,D()D YARD
..,chants' shipbuiIding Co.
Nav Get Entire Plant by
/ Boards Economy
/ 100000 WAS SAVED

n, plant of the Merchants ,,..s',aap snip
aa,r, Corporation. at Hartman,
''u .,ob cost the taxpayers almost
|,smo. 900. will probably be given the
..,,on O,.. by the Shipping Board be-
,ho hoard has failed to buy the
= ,ost ur Of this is s1,SOo,ooo.
= :, addition. the Merchants Corpora
d requesting that the Shipping
= INV over about $1,000, 900,
I,,sh according to the claimants rep
MS one. third Of a saving In the
.t.,,ct;on Of forty vessels
cnnsV'nons the corporation will receive
feuro fe,nur .,,m, which is claimed in nd
ns p't 80, ,OOo. 900 already paid by
non a contract which calls for a
lSVus NJ s5O. 900 vessel, but IL so,
rill be over the protest OF many OF
/. subordinate officials OF the snip
ns K pS'' Nichols. district manager Of
shipping Board. through whom all
s.otIations should pass. said he under
WI That virtually the, entire plant
S.se Merchants Corporation was about
% turned over to the corporation.
Nichois also sad that he signed n
IT, written February 10. 1921. to
smmondcr Gatewood. director of con-
rmction mud repairs of the Shipping
.srd cnllinc his attention tn the fact
y the Merchants Shipbuilding Cor
s.s,;on was about to complete it's CON
XVI and that in his opinion the Ship
~ Board should take advantage of
terms Of the contract and buy the
Z, estate for 81 .300.0 900.
fWr Nichols explained the Shipping
nsrd would thus become the owner OF
4 hul,dinss. He said that 1t was his
I'M that the board could dispose of
u Mart in its entirety for more than
O0O 600. but that II the board did
n take advantage Of its option and
~ the real estnte the plant would
vert 20 the Shipbuilding Corporation
fith the exception of material readily
|enoyable. This would mean that all
|he Gcvcrnment could salvage would be
Sbout 5000 900.
"To what do you attribute the ability
the Merchants Corporation to ac-
hire, without any cost to itself. plant
khich cost the taxpayers almost S15.-
00OOO?" Mr.. Nichols was asked.
oOh, there are several things that
Iould be mentioned but 7 think that n
kcak contract is responsible. although il
hust be borne in mind that the Ship
bing Board had plenty Of time to save
his plant by putting up the amount
nue the Merchants Corporation for the
|sal estate. However. my responsible.
bes ended when informed Commander
lakewood just what was to happen in
e event of the Government fniling to
Exercise its option to buy the land.
II have no criticism Of any one. Any
Ming that say is not official"
The situation is now under investiga- =
icn by the Shipping Board at Wash
Ihgton. Chairman Lasker. who assumed
Smee several days ngo ms the successor
N Admiral Benson. is personally con-
ucting the inquiry. Information
eached him. it is learned. which led
|in to drop other matters and take up
hscharges in question.
While officials in Washington refused
y comment. II is known that auditors
br at work on the books and accounts
! the Merchants Corporation. and that
forts are being made to uncover de-
bills Of what officials believe points to
frmendous waste Officials Of the board
IRE not prepared to say now whether
he corporation is at fault.
II Is said in Washington that the
pecision not N purchase the property
s made by President Harding on the
dvice Of Shipping Board officials and
enator Jones Republican,. chairman
n the Senate Commerce Committee.
Senator Jones said he had advised
Pc. President when the question of the
Ppton came up not to purchase the
property. lie contended the buildings
lnd equipment on it belong to the
Posernment and are subject to removal
the Shipping Board.
10 have bought the property would
pave meant the expenditure of 81 300, :
w Tor pronPrty that was worth per
,aps $5OO.OOO or SlOO. .U00.' Senator
ZONES declared, "'ihcrc was nothing to
Justify it. and advised against it.
ihe plant itself IL the property OF
he Government and the buildings may
Ntalvaged. ! understand most of them
|lre OF brick construction. and that
|lh material and Supplies now on the
ground can be removed by the Shining
BOARD at any time.
40 not understand that the plant
|sverts to he company because of the
|uo'ernment de"iSion not to buy the
|vill hold" '', " " : i" ="