The Washington herald., 1921-10-19
s34O,OOO,OOO Loss
BY SHIPPING BOARD
In SALES EXPECTED
Surplus Materials Valued
Far Below First Cost
Will Be Sold.

VIII De SOlu.
The Shipping Board Is ready to
sell its stock at a loss of almost
S34O. .000, 900. Only a part of the
sold at present and represents an
initial cost of s125,ooo. 900. The ap-
praised value on which the coming
sale Is to be based Is $35. 900. 900.
Final plans for the disposition Of
surplus materials. shlpyard plants.
housing projects. marine railways
and dry docks. electrical and steam
railways, steel and wood ships and
tugs have been completed by Pres
ident Joseph W. Powell of the Ship
ping Board Emergency Fleet Cor
poration.
Powell announced yesterday that
the property to be sold cost the
Shipping Board $3.50, 100000. The ap-
praised value placed on il is S59,-
$4,000. These figures do not In
clude the cost of finished ships. both
steel and wood. housing projects.
electric and steam railways. Sc
curities and accounts receivable.
The material is now located at
South Norwalk, Conn, Hog Island,
Pa. Chicago, New Orleans. Los
Angeles. Portland. Ore. and Tacoma.
Wash.
The active head of the sales cam
paign will be Sidney Henry, of Bal
timore. Nd. Under his direction
seven district sales managers wilr
have authority to dispose OF ma
terials for cash In lots not exceed
ing $1,000. Any deals above this
amount must be referred to the
Washington office for confirmation.
Divided Into Groups.
The materials are split into eight
groups: ~ p.
Operating materials and sup
plies, principally oil and fuel. frst
cost S15.367.OO0; appraised value
SIC. 500. 900. Not to be sold.
2-Surplus materials and facilities.
original cost SI18.112.o0 appraised
value S32.070. 900. -.
3-Construction materials and
equipment. shIpbuilding materials.
first cost $11.772.OOO; appraised
value, s3.4s0.O0O.
4-Shipyard equipment. land
building and drydocks, original
cost, $4,000, 900: appraised value
s22,4S7.OO0,
5-Furniture and equipment, prin-
cipally office equipment; original
cost s1,S44,O00; appraised value ST.
214.0OO
| 6-ReaI estate at As Broadway
New York. original cost $4,000, 900.
no appraised value has been set.
| Z. Fuel oil stations situated all
over the world. original cost S8S1,-
900; no appraised value and not for
sale at this time.
| 8. Ships and drydocks under con-
struction cost $6S,527,OO0; appraised
value s58,475,O00.
9. UncOmpleted wooden hulls, cost
$4,000: no appraised value given
Shipping Board officials admit that
under the sales policy it is prob
able that the most saleable items
OF this material will be sold first.
and the most undesirable left on
the Shipping Boards hands. In
this event, 1t was said, a forced
sale value, which probably will be
far below even the appraised values
given out yesterday, will have to be
accepted in order to move the
greater portion of this property.
Powell would not state when the
other materials and properties
aside from the $125,0O0,O00 worth
of surplus materials and facilities.
and construction materials and
equipment would be placed on the
| market.
The existence of secret contracts
with British agents made by. the
old Shipping Board or Shipping
Control Committee were revealed
yesterday by Sir Ernest Raeburn,
British representative here to set
tie Great Britain's $21.0O0, 900 debt
to the United States Shipping
Board. These contracts, Sir Ernest
declared. would materially alter
the amount due the ShipPang Board.
Although Chairman A. d. Lasker
refused to discuss the secret con-
tracts and merely announced the
presence OF Sir Ernest to dispose
of the $21,o0o,0 900 British debt,
IL 10 understood that
the old Shipping Control Committee
made the secret agreements. The
committee was composed of r. A.
| S. Franklin, president of the Inter-
national Merchant Marine, chair
man; H. H. Raymond, and Sir
Connop Guthrie. British representa-
tive.
Sir Ernest has agreed to furnish
copies OF these contracts to the
Shipping Board. which at present
knows nothing of their existence.
Therefore the final. amount to be
paid cannot be determined until the
alleged secret DOCUMENTS are fur
nished by Sir Ernest.