New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-19

possible, but he asserted that the
board was not disheartcned and would
eventually solve the problems involved
Chairman Lasker's statement to the
press was made in the presence Of
Comptroller Tweedale and the other
/ auditors of the board.
Il have Mr.. Tweedale and the other
auditors here SO that | cannot do them
an injustice" Mr.. Lasker began. THE
books are in deplorable condition.
In any commercial institution they
wouldn't be called books at all. Thev
were started in the stress of war and
continued in the stress Of incompetence
until Mr.. Tweedale and the others are
now trying to straighten them out
ANY OF our great corporations would
nave been IN receivers hands long ago
as result of the way the books alone
nave been and are kept, and the opera
tons Of the fleet necessarily must be
just as incompetent as the books are
because it is impossible I operate any
business If there isn't figure on which
remote reliance can be placed.
In the presence of the men who
have had charge of the books for If
teen months (and l ask them to chal
lenge me if | am stating anything in
correctly | want to say it is incon-
celvable that an institution like this
could be In existence and be turned
over to men to administer in the shane
1t is. Had the books been kept with
view to cheating and deceiving Con-
gress and the country, they could not
have been kept in much different shape
tnan they have been, and | measure the
words | am using. 1t has almost worn
me out physically and mentally to get
anything from the books that could be
regarded as complete.
Charges Gross Deception
when l showed to the President
few minutes ago the figures l am about
to reveal to you he was shocked and
dlsmayed that such a condition could
exist, AS matter of fact, the Shin
ping Board used last year approx
mately 80000,000. Besides the $780,
0O0,o appropriated by Congress and
$50 900 on hand al the beginning of
the fiscal year it sold assets for $780,
100000, all of which money went back
into the enterprise. Then in addition
1T received from operation of vessels,
etc, $300,0O0000, which was also spent,
this making total expenditure by the
Shipping Board of $500 100000. This
S3oo,ooo,Ooo received from operations
when deducted from the $3.50, 900 900
received from all sources shows a
deficit of $380,00000O, although the
public records show 100000 900 to be
all that had been appropriated by the
Congress for the year. This is an as
founding case of absolute deception of
the country and Congress.
Il know and want to explain that
Admiral Benson and Mr. Tweedale had
not the remotest thing to do with such
gross Misrepresentation. They were
nr+t -
under which the books had been kept,
from the hour the institution started,
and they were 50 busy trying to
straighten out the miXup in settle
ments and operations that they never
had the time TO try to systematic the
records. And the only reason this has
| developed now is because, coming in
az a new administrator, | wanted to
find out for my own guidance what the
loss had been. This necessitated calling
in outside auditors before the facts
could be dug out. | don't guarantee
the figures now; they are the best we
could secure from the books, and we
are assured by Mr.. Tweedales assist
ants. all of whom are here, that they
viii prove fairly reliable
'To-morrow l must appear before
Congress to tell them it is possible
the Shipping Board will require up to
$500 100000 for the present fiscal year.
fear this will throw lot of sand in
the gear box of tax revision.
Anything realized from the sale of
assets from now on must be turned
into the public treasury, and not ex-
pended as in the past The President
wants the country to get, not, as in the
past. picture which shows what did
not happen, but, even though it might
show that even we ourselves are in
competent, to publish all we really
lose
Now it is necessary to ask the
Congress for $300,000,000 to carry us
through the coming year, though we
will try the first six months to get
along on 500 000,0 900 to $125, 100000
We will not hide our losses. When |
say We may need up to $500, 1000 for
the coming year. it is the hope that
from that sum we will be able to pay
not only the losses of operations, but
also to settle finally part of the
claims and the lawsuits pending
against the Shipping Board. These
latter amount to more than S30o,000,0O
themselves, but we anticipate settling
them for so cents on the dollar, be- !
cause many of them are padded.
THE President has inherited in the |
Shipping Board the most difficult bust
ness problem ever given to President |
to work out. Every condition sur
rounding it was sick. Beginning with |
world trade conditions, which are the |
worst ever known, and coming down 70 |