Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-07-21
GUARDIANSHIP SEVERED
CRITCIZES SHIPPING BOARD

WASHINGTON, July 19.-With the
publication today of revised eSt1-
mates of the shipping boards deficit
for the last fiscal year showing a to-
tai of $3S0,000,000, or approximately
$3.50, 100000 more than previous esti-
mates, Chairman Lasker, of the
board, said he was prepared to appear
before congressional committees to
explain the condition of the boards
finances and asked for relief ap-
preparation of approximately $780,
100000 for the current fiscal year.
In announcing the new estimate of
the deficit incurred in operation of
the government fleet Chairman Las
ker declared the books of the ship
ping board were in q "deplorable
condition and that they could not
have been kept in much different
to cheating and deceiving congress
and the country"
II know, and want to explain"
the chairman added, that Admiral
Benson (former chairman of the
board), and Auditor Tweedale had
not the remotest thing to do with
such gross misrepresentation
The accounting systems, he said,
were started in the stress of war
and continued in the stress of incom-
petency," and though outside audi
tors had produced the figures given
out, II don't guarantee them, even
now"
''When I showed the president the
figures he was shocked and dismayed
that such a condition could exist,
Chairman Lasked continued. The
$500, 100000 received from operations
when deducted from the 100000
received by the board from all
sources shows net expenditures OF
$3.50, 100000 although the PUBLIC rec
ords show $100,000,000 to be all that
had been appropriated by congress
for the year. This is IAN astounding
case of absolute deception of the
country and of congress. 1t will be
a shock to congress as it was to the
president to hear that the net eX-
pense of this enterprise paid out of
public funds last year was $780,
Chairman Lasker explained that
the extra funds to keep the estab-
lishments going were obtained chief
ly from the sale of $500, OOO,OOO capl-
tai assets, ships and supplies, plus
$S0,000,000 of balance from funds
left from last year.
Approximately $2OO,O00,O00 repre-
Sents the absolute loss on operations
in the fleet he continued, and then
there was $3.50, 100000 spent on ship
construction. What these neWly-ac-
quired assets are worth is highly
questionable.
SEnormous Loss
1.-THE plans for the steamer Amerl-
can Legion, which starts on It's hrst
trip in a few days, were redrawn
seven times, and 1T is easy to see
how that would run UP the cost.
First, the American Legion was an
army transport, then a navy trans
port, then hospital ship, then it was
determined to make her cattle boat,
and after spending money on all
these blueprints, it was decided to
transform her into a passenger snip
and she is a beautiful and fine pas
senger ship. But she cost between
$6,0OO,0O0 and $7,000,000 before she
sailed her first mile. Her real worth
is probably half her cost. So, you can
see the assets are pretty sick assets.
But after all, there is a fleet, so that
our task is to make what was a la
bility into an asset"
President Harding has instructed
the board that the public is TO have
the facts-aIl the facts" Mr.. Lasker
added. The ships are being operated
on a commission basis under con-
tracts that cannot be discontinued
Immediately, he said, and I'VE must
grin and bear the system for some
months to come"
II have actually heard of a boat
turning back in mid-sea to take on
a cargo on which the operator made
$4,000" he remarked, land the gov
eminent lost $S,O0O-and this boat
was half way across the China sea
when they turned her back to get
that cargo at Manila. Anybody can
see that a system where the opera
tor has nothing at stake, whereby the