The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1921-07-20
SHIPPING BOARD
SHOWS VAST deficit
loss is Much Larger Than
Thought.
BOOKS ALSO
IN BAD SHAPE

Operations OF the Shipping Board.
Fleet Shows Loss OF Over 300,
O00,Oa0, Says Chairman Lnsker
Astounding Case OF Absolute Dcccp
fton.
Washington, July 1S.-Operations o
the shipping boards fleet for the tisca
year just ended resulted in loss o
approximately 3S0000,000 Chairman
I4asker Of the board announced today
This deficit was greater by $3.50, 0,000,0 ,00(
than previous estimates from oficja
sources and was made following al
examination OF all board accounts
The governments venture in the mcr
chant marine business last year in
volved a total expenditure Of $3.50,
100000. so far as could be ascertainet
from the boards books which MI. Las
new chairman estimated that it would
cost the government $300,000,000 tc
carry on operations 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
of the shipping board last year, Mr..
IIasker said that this revealed an as
founding case Of absolute deception to
the country and congress"
"The president was astonished and
dismayed that such condition could
exist when l laid these figures before
him this afternoon, but he wanted me
to give the public the facts" he added.
Total expenditures over receipts
appeared to be approximately $780,
100000, Mr.. Lasker said, instead Of
$99,5lS,06S.11, as previously shown by
the boards books. A commercial con-
Germ operating on similar basis
would have been in the hands of re-
ceivcr 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 Controller Twee-
dale. He said that 1t was due to the
system started during the war and
continued until recently. The money
which is unaccountcd for was said by
the chairman to have been disburscd
by operators OF government owned
boats for which full accounting has
not been made. The chairman further
asserted that OF 5000 voyages made
only 1900 had been accounted for and
that 200 auditors were now working
on the books of these operators to find
out what happened.
IT am asking congress for S300000,-
900 for the year." Chairman Laskcr
said. and I fear that may throw 4
lot OF sand into the gear box Of tax
revision, but we estimate that 1t will
take from $20O,OO0,0OO to $225,OOO,O ,O0u
to run the next six months. But we
plan to pay for all losses of opera
tions and settle a part OF the claims
against the shipping board amounting
to more than $300,000000.
These may be settled at no more
than so cents on the dollar because
they are believed to be padded"
AS an example of how great losses
have been entaicd upon the board,
Chairman Laskcr cited the 'constrnc-
ton Of the American Lesion. vessel
which went into service out OF New
York this week and which, he said
was redes.gncd and rebuilt on the
ways, SO that her final cost 10 the
government was between $6,O00,OO0
and 81 100000, or twice her value.
Some OF the operators OF shipping
board vessels. he said, also took q
commission of > per cent. on freight
handled under their control, though
their. boats were piling mp a deficit
which the board had to meet.
Whenevcr the board has sold prop
erty, he added, the money has been
turned back into its operations. and
not accounted for to the treasurer in
any way A recent enactment OF con-
gress, however, would end this prac-
tiice and force strictcr accounting Of
funds