The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1921-07-20
HUGE PRIVATE PROFITS
IRON RESALE PLAN


missions.
HUGE PRIVATE PROFITS
FROM RESALE PLAN
lie found. he says. tho junk ring
the most active piunderbund at
work on Americas war remains
had managed to bring about a TO
sales hazis-which stiil exists
whlch caused and In causing tho
people gigantic losses. and resulted
In tho government holding for
these spectators materials which
could have been sold on n high mar
ket--while tho spectators went out
TO find buyers. and. after ceiling
tho supplies at big profits. came
back TO the shipping beard and
purchased
The rcaaies hasAs WORKS this way;
Millions OF dollars worth Of sup
plies were and are stored In ware
houses and at yards on the Pa
cis1c coast. at Cleveland on the
Great Lakes at Wilson's Point.
sparrows Point New York. New
London and Boston on the Atlantic
coas, and all along tho Gulf coast
a. well
JUNK SPECUTArORs
GET LIST or MATERIALS
The junk specuiaiorx would. thru
indulgence OF supply and sales dis
trfct dirccfou. secure lists OF these
naaferiais classified m to kinds
They would view tho materials.
rrt prices as which they couid buy
from the shipping board Then they
would ascertain what the market
was.
Next they would purchase ma
tsriais on credit to DO paid for -
moved.
Then. Whine the shipping board
. held these materials. paid $4,000.
900 annual overhead In supply and
sales department. paid Thousands
and hundreds Of thousands In ware
hotre and yard storage rentals on
these materials. the spcculators--
In some cases using tho supply and
sales OBSERVATION-DISCLOSURES ind pur.
chascrs for this material ut huge
profits--somctimes 100 to 800 per
ccnt--and would sell the supplies.
SHIP BOARD SHOULD
HAVE HAD PROFITS
When tho saic was male the
spcculator would have delivery
made TO the final purchaser from
the shipping board warehouses.
and would then pay supply and
sales depa rtment for such material
as had thus been sold.
Miller admits that thru the sup
ply and sales department these
same materials could have been
sold for account of tho shipping
board NJ tho Same prices secured
by the specuiatora
In many cases. when tho mar
ket saggcd. and while tho mater.
iais deprecated. tho spectators
did not carry out their contracts
and the people were left holding
the bag"
A case IN point n the saie OF
oakum In tho Gulf and South AZ.
lantic districts
Evidence adduccd before the
I congressional investigating commit
tee. and now admitted by Miller
10 be true, showed Thousands OF
tons OF oakum quoted in the hat.
ter part of 1920 Mt 20 cents n pound
sold at the time 10 Dietz & Co. OF
New York. for 7k cents pound
Representatives OF the supply and
sales department at New Orleans
previously had sold this oakum to
Ness a CO.. of Savannah. at 9A
cents n pound and had taken Ness
certified check to bind the deal.
The Ness sale was Cancelled
by the Washington office Of the
supply and sales, and three
days later this oakffm was sold
To Dictz for ~ cents, and Inn
mediately rcsold by Dietx TO
Ness for 9h cents.
At this time the shipping
board was buying oakum ut 2e
cents pound, In some cases
paying repair men 10 per cent
profit for making the pur.
chase.
Millians OF dollars worth OF ma
terials sold had not been entered
on the Washington books rs sold
a, all, and stood still charged as
surplus on hand.
CHAOS IN KEEPING
or MATERIAL ACCOUNTS
Utter chaos characterized the
keeping OF material accounts.
In the South. Miller admits. dis