The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1921-01-22
(Coatinusd from Page One.)

(Contfnued from Page One)
merchant marine: that the sncr-
Geney Aeet corporation delivered
~ ships before the armistice was
sigAed: that the task WAS to build
ships faster than submarines could
sink them which was q war assign
ment and not . peace undertaking,
and that the building Of ships vas
conducted in . systematic and bus
inesslike manner.
Weelea Ships.
Mr.. PieI contends in his state
mont they had to build wooden
ships knowing they would be
strapped when conditions got back
to normal: that because Of the de-
mand Of the war department for
more ships that Z. N. Hurley, Balm
bridge Colby and himself request
cd Charles n. Schwab to Join the
organisation and that General
George w. Cocktails inaugurated
the accounting system.
Mr.. Piers statement says that
he suggested in December. 1917.
that NO further contracts for wood
ships be let but the board of trus-
tees waS obliged to keep on build7
ing when pressure for anything
that would float became so Intense
in the early spring OF 1918. The
claim says that there was not a
voice in or out Of congress that
was raised in protest at that time
against a continuation of the wood
ship building program. I
The statement says there was
some payroll padding, some petty
dishonesty, but no more than there
would be in yards under private
control.
Mr.. Piez continued:
This inference ON the part of
the public Is in large measure the
result Of the wild statements made
by>Mr. 6illen concerning the meth
DDS Of the feet corporation, and to
tho general statements Of graft and
corruption contained in the Fisher
Richardson report. The public does
not diiferentiate the division OF
construction from that Of opera
tons, and concludes that because
that there was petty graft among
the minor ships officers in the
victualling and repairing of ships
in operation, that the entire struc-
ture Of the corporation, from top
to bottom. was honeycombed by a
like condition.
Graft IN ship operations has
from time immemorial been con-
sidered one of the prerequisites OF
petty officers, and is a difficult dis
ease to eradicate. 1t has no place
in the operations OF an American
feet and should be treated with an
iron hand.
But it is to be regretted the
Fisher Richardson charges are
couched in such general terms that
they have besmeared the whole
structure of the shipping board
and fleet corporation with the slime
OF suspicion. Many of the charges
should have been made in the po-
lice courts rather than in a re-
port of such importance.
Gross Misstatements.
In taking up his claims as to Mr..
Gillen's testimony, the statement
says
Another gross misstatement OF
facts on the part of Mr.. Gillen is,
to-wit: That there was no record
Of $240, 600, 900, Of mortgages and
other securities belonging to the
Fleet Corporation. He says they
were afterwards found in a trust
company in Philadelphia
"The facts are these: The Sc
curities In question we're in the
possession of the treasurer in
Washington until April H.. 1919
when the trustees Of the corpora
ton passed q resolution authoriz-
ing the transfer Of these securities
to the custody OF Comptroller
Bender in Philadelphia. On May
26, 1918, the board Of trustees pass
6U q lGOOlutkOu CO4uk A1A6 0IIAOI
Of Mr.. Bender in renting a safe de-
posit box in the Girard Trust COM
pany of that city. On July 3, 1919
the trustees passed q resolution
transferring the custody Of these
securities to T. Ed New, assist
ant comptroller Mr.. New has main
tanned a specja4-segister of these
securities, and it was from this
register that the list appearing id
Mr.. Gillen's testimony was pre-
pared.
"Mr. Gillen states: There was
no record in the treasurer's Office
of the many millions in inprest
funds-how many millions l don't
know. 1t must have run to two OF
three hundred million dollars if i'm
prest funds in the hands of con.
tractors in the ship building dis
ing districts of the country
Monthly Balances.
ut is strange that Mr.. -Gillen oc-
cupying the position of assistant to
Judge Payne, president, of the
Emergency Fleet corporation
should. during an incumbancy OF
| ten months. have been unconscious