The New York herald., 1921-01-20
SAVED S15,OOO,OOO
FOR U. s., HIS CLAIM
Continued from First Page.


the former owner in the way Of progress
payments before we could straighten out
and adjust these payments, and I prop
erly signed as General Comptroller GER
tificates authorizing payments to former
owners.
''To prevent a condition OF this kind
arising In the future general order re-
quiring all statements issued in the
future to be properly identified was
issued by me-"
The witness had hardly begun this
statement when the door opened and Mr..
Gillen smilingly entered the room in the
Pennsylvania Hotel in which the COM
mittee holds its sessions. He listened
with a panied expression and inter-
rupted finally to ask Chairman Walsh
for permission to interpolate"a few words
right at this point which would enable
the committee to understand this mat
ter" The chairman silenced him, assur-
ing him that he would have his chance
after Col Abadie had completed his
evidence.
Mr.. Walsh, interrogating the witness.
asked him how long it was after his re-
fusal to certify these settlements when
replied that from thirty to sixty days
had elapsed in the various instances con-
cerned.
And how many millions do you say
the Shipping Board Corporation would
have lost II you had certified these
papers when the demand was first made
upon your"
From $40, O,00o.0 900 to SIS, 900. .oOo." an
swered Col Abadie.
ri Ita
took up In detail some OF the deals which
fell under his disapproval. He had for
titled himself with a trunkful Of docu-
mentary matter to which, at his request,
Rear-Admiral Benson, the present head
of the Shipping Board, had given him
access He took up first what he called
the deal with the Nafra Company. the
Green Star Steamship Corporation and
the G.. NJ. Standifer Construction Cor
poration of Portland, Ore, and Seattle,
Wash.
The name of Martin ]. Gillen ran
throughout the course of a score or
more of involved financial and Govern
mental transactions In which these
firms and corporations figured. Mr.. Gil
len remained as special assistant to Mr..
Payne, and afterward to Rear Admiral
Benson. until September. 1920. Since
that date he has been associated with
the Nefra Company, which is an export
business. and with the Green Star Line.
which operates steamships, many OF
them Government owned vessels.
According to Col. Abadies charges
the Shipping Board virtually gave" to
the Nafra company the sum of sS73.-
S47.57 through an overpayment. On
October Is, 1917. he testified, the Gov
ernment requisitioned under its war;
time authority three freight ships-the
Santa Cecilia. Eurana and Chinca-ali
owned by a subsidiary, the Imperial
Shipping Corporation Before these
ships ware commandeered and prior to
their ALLEGATION to the army In 1918
each had made two trips TO Italy under
the direction of their owners, The I'm
perial corporation collected all the
freight money It could and held to 1t.
The Shipping Board collected the bal
ance OF the money directly from the
Italian Government.
The Nafra company. as the parent.
claimed the revenue as It's rightful prop
erty. maintaining that until the Shipping
Board took physical possession 1t was
entitled to the freight moneys earned.
dispute arose and while a settlement
was pending the Nafra company pur-
chased number OF Shipping Board
steamships.
As compromise. so the story told
by the witness goes, Commissioner
Thomas Scott on November 2s. 1919.
had resolution passed by the board
which gave on account OF the claim
a credit of s1.SS4, 46707 TO be applied
on the vessels. This sum represented
the full credit for freights which the
Nafra company was unable TO collect.
From that amount was deducted s74,S68.
a sum which purpoLsrA TO be charter
hire paid to the Nafy ts)npany.
"As matter of .e.t'' Col. Abadie
swore, instead OF .1.SS4,467.07 the
Shipping Board ha- not collected and
has not collected revenue on account OF
these voyages in excess OF s1,010,617.50.
This on its face shows an excess and
arbitrary payments OF ss73,S49.51.
"A report on the deal made by r.
Gatesby Rowe said in conclusion: BY
actual figures IL Is clearly shown that
In the settlement the Nafra company
received credit for over so per cent.
more revenue than we (the Shipping
Board) received, and was charged with
less than so per cent of our actual dis
bursements'"
The Nafra Company, according to the
evidence. was allowed further credit of
s1172,59s.75 for depreciation which oc-
CURED when the army was operating the
three ships during the war period. This
was applied against payment for four
ships which had been purchased from the
Chipping Board--the Maine, Woonsockct,
Sagadahoe and Canibas.
One OF the features of this purchase
agreement was that the Shipping Board
would pay to the Nafra Company from
andafter January I. 1920. on all OF these
ships not yet delivered tho sum OF s4.15
per month per deadweight ton for the de-
tention of these freighters. The terms
OF sales agreements again were changed
on July 20. 1920, at the instance of Mr.
Gillen.
Before adjournment for tho night the
witness had taken up the case of the
Standifer Corporation. 1t had contract
No. COS for five steel ships, which con-
tract was cancelled. The corporation
Chen presented claims totalling 100000
for material on the ships cancelled and
other claims amounting TO a grand total
of 81 10000. About September s. 1919.
settlement virtually had been effected
by the Shipping Board for n net pay
ment of sis3. 3.1i0.62. But the award was
reviewed by r. ID. Levy, chairman OF the
Claims Board. That revision added to
the former claims about 100000 10
cover surplus materials. steel. &C. on
contract No. 1is. which was for the
building OF ten ships. none OF which had
been cancelled. and six of which NUM-