New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-19
Wants Congress to Save
''Most Colossal Wreck
That Amy Administra-
ton Ever Inherited''
Old Boards Books
I'm Chaotic Shape
Seeks 800 Millions Now:
Charges Extravaganza,
Waste and Deception

WASHINGTON, July 18.-In an ef-
fort to resuscitatc the United States
shipping industry, which he character
lied as the most colossal wreck that anv
Administration ever inherited, Chair.
man A. B. Lasker of the Ship
ping Board will go before Con-
gress tomorrow and ask for a def
cheney appropriation of $4,000 900.
The Shipping Board chairman made
the astounding disclosure to-day that
the board last year spent $3.50 900, 900
more than its receipts. He said the
books of the board were in such q
chaotic shape that the sum of $780,
100000 to be sought from Congress
was "the most intelligent wild guess
we can make" Of the money required
to begin the task OF getting the United
States flag properly in operation on the
seven seas.
Tells Harding of Situation
Mr.. Lasker made public a financial
statement OF the receipts and expendi-
lures of the last fiscal year to show
the distressing condition which the
Shlpplng Board faces. The statement,
which showed a gross expenditure of
$680,O00,000, with receipts totaline not
more than $30O.000,O00, leaving a net
loss of $3S0,000,OOO, was laid before
:Iresldent Harding this afternoon by
the Shipping Board chairman. The Pres
dent immediately authorized him TO
make public clear-cut statement OF
the case.
The, President was shocked and dis
mayed, Chairman Lasker said, at this
CRIMINAL waste and extravaganza. The
Pres dent instructed the Shipping
possd CHAIRMAN that the public should
nave all the facts, that a complete re-
cltal OF all the losses must be given
out, and that no longer must the conn-
try get doctored picture, as in the
tons. 0pei
Chairman Lasker held no individual
accountable for the profligate spending
practlced, declaring that Admiral Ben,
son and Comptroller Tweedale. the
Two ofhcers in charge during the past
year hadnt the remotest thing to
do with it," But he was equally en-
phatic in declaring that the unhnsi-
nessllke methods that have been po-
ing on aust cease and every pennv
expended or due the Shipping Board
must be accounted for.
Boards Financial Statement
Here is the financial statement made
public by Chairman LasISer for The
hscal year ended June 80, 1921:
RECEIPTS
Received from operations.... s2oo nm nm
received from Treasury 100 0OO 0oo
TO the credit OF the Shipping
peoei,iad noara IN the Treasury $4,000. 900
assets ..''..'............. 200 ooo, 900
'otai receipts .,'............S6 $3.50 900, 900
DISBURSEMENTS
For general operations. s4oo non mn
No. 49, si1i's ,, -. '..'.,... 160, 600, 900
roads and equipment. ..... G ooo ooo
miscellaneous supplies ...... IL Oon nOo
NJ: -, % ~ loieisn oIHceS, 100000
-eiiaiieouS .. '..--'........ 1000 900
Total disbursements ......s6SO 600 OO ,
Of the operating cost alone, Chair
man Lasker said, the board had been
u:iaole TO account for the expenditure
of S307,000 900. Some of this amount
he added, was still due from private
lines to which Shipping Board vessels
had been allocated, but thus far corns
OF zoo auditors had been unable to get
line on these unreported VOYAGES
Cites Extravaganza
Inc chairman gave several instances
OF mlsmanagement of the former board.
citing the case Of the American LEGION
which will soon start on it's maiden
trip, as an evidence of the widespread
waste countenanced. This vessel. he
said, has been done over seven times.
first as an army transport; next as a
navy transport; then as hospital ship.
only to be reftted as a cattle boat. and
finally it has been made into passen-
ger liner, the total cost of the vessel
being six or seven million dollars.
Another source of extravaganza men
toned by Chairman Lasker was the
present system of allowing operators to
whom Shipping Board vessels are al
located fiat rate of per cent on the
cargo carried. He gave one instance of
a vessel in the Pacific trade which real
lied $4,000 one one shipment on which
the government lost approximately
$4,000.
Chairman Lasker said "it is nobody,
fault that this vicious system existed ~
He warned that it would be several
months before any change would be
(Continuod cage three)