The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-07-19
$50 MILLIONS LOST
BY SHIPPING BOARD
DURING FISCAL YEAR
Lasker Charges Amazing
Deception in Report of
Old Regime.
HARDING ASTOUNDED
Deficit S28O,OOO,OOO More
Than Previous Official
Estimates.
s3OO,OOO,OOO is NEEDED
Benson Is Not Blamed, but Ter
rifle Blunders Attributed
to System.

WASHINGTON, July 1S.-Operations of
the Shipping Boards fleet for the fiscal
year just ended resulted in a loss of
approximately $3s0,oOo.oOO, Chairman
Lasker of the board announced to-day.
That deficit was greater by $2s0O00.-
900 than previous estimates from Of
fetal sources, and was made following
an examination of all board accounts.
The Governments venture in the
merchant marine business last year
involved total expenditure of $780,
100000, so far as could be ascertained
from the boards books, which Mr.. Las
ker described as in bad shape. The
new chairman estimated that it would
cost the Government s3o0,0o0oo0 to
carry on operation of the fleet this
year.
In stating that an examination of the
books showed that $3.50 900 900 had been
expended from the public funds on the
Shipping Board last year, Mr.. Lasker
of absolute deception to the country and
Congress"
President Astounded.
1.-THE President was astonished and
dismayed that such a condition could
exist when I laid these figures before
him this afternoon, but he wanted me to
give the facts to the public" he added
Total expenditures over receipts APP
peared to be approximately $3.50 1000,
Mr.. Lasker said. instead of $99.5lS.567.u
as previously shown by the boards
books. A commercial concern operating
on similar basis would have been in
the hands of receiver some time ago,
the chairman asserted stating also that
he knew this state OF affairs was not
the fault of Admiral Benson. former
chairman of the board, nor Of Comptrol-
Ter Tweedale. He said 1t was due to the
system started during the war and con-
tinued until recently.
The money, which Is unaccounted for,
was said ny the chairman to have been
disbursed by operators of Government
owned vessels for which full account
Ing has not been made The chairman
further asserted that of 5000 voyages
made, only 5000 had been accounted for,
and that 200 auditors were now working
on the books of these operators to find
out what happened.
A balance sheet of the Shipping
Boards books classified receipts from
operation If ships. s300,000,00 from
appropriation. s100.000,0 900 from balance
on hand July /. 1920. sS0,O00,000. and
from sale If assets. $2o0,000.o0o, total
of $3.50. 900 900.
Expenses were: General operations.
s409. 600. 900; new ships. s160.000.0o0;
dry docks, &c, s62.000,000; supplies,
S1s,000.0 900; advances to foreign offices.
$4,000, 900, and miscellaneous expenses,
S72,OOO,O0O, total of $6S0,000.000.
From this balance sheet. Mr.. Lasker
said, the board had spent above earn
ings $100,000,00o in direct appropria-
tions. $50, 100000 from balance Of
previous year and $500. 100000 from as
sets sales, or S3S0,000.000 Of deficit.
Ask for 100000, 900.
81 am asking Congress for s3oo.0oo,0o0
for the year." Chairman Lasker said.
land fear that / may throw lot of
sand into the gear box of tax revision.
but we estimate that II will take from
500. 100000 to $125.000.000 to run the
next six months. But we plan to pay
for all losses of operations and settle a
part of the claims against the Shipping
Board amounting to more than $780,
100000. These may be settled at no
more than fifty cents on the dollar De-
cause they are believed to be padded"
AS an example of how great losses
have been entailed upon the board
Chairman Lasker cited the construction
of the American Legion. vessel which
went into service out of New York this
week. and which he said was redesigned
and rebuilt on the ways, so that her
final cost to the Government was be-
tween 100000 and 100000 or twice
her value. Some of the operators of
Shipping Board vessels, he said. also
took a commission of 5 per cent. on
freight handled under their control.
though their boats were piling up
deficit which the board had to meet.
Whenever the board has sold prop
erty, he added, the money has been
turned back into its operations and not
accounted for to the Treasury in any
way. A recent enactment of Congress.
however, would end this practice and
force stricter accounting OF funds.