The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1921-07-19
LASKER SHOWS
GREAT DEFICIT
IN SHIP BOARD
Will Ask for Relief
Appropriation of
$500, 900, 600.

Washington, July 19-With the
publication today of revised est-
mates of the shipping boards de-
felt for the last fiscal year, show
ing a total of $3.50, 1000, 900 or ap-
proximateIy $3.50, 100000 more than
previous estimates, Chairman Las
ker of the board said he was pre-
pared to appear before congress
sional committees to explain the
condition of the boards finances
and asked for a relief appropria-
tion of approximately $500, 900, 900,
for the current fiscal year.
Bookkeeping DepIorable.
In announcing the new estimate
of the deficit incurred in operation
of the government fleet, Chairman
Lasker declared the books of the
shipping board were in a "depIor-
able condition, and that they
could not have been kept in much
different shape had they been kept
with a view to cheating and deceiv-
ing congress and the country"
Il know and want to explain"
the chairman added, that Admiral
Benson (former chairman of the
board), and Auditor Tweedale had
not the remotest thing to do with
such gross misrepresentation
The accounting systems, he said,
were started in the stress of war
and continued in the stress of in
competency" and though outside
auditors had produced the figures
given out, 81 don't guarantee them
even now"
Harding Is Shocked.
when I showed the president
the figures he was shocked and dis
mayed that such condition should
exist, Chairman Lasker continued.
THE $500, 900. 900 received from op-
erations when deducted from the
$3.50, 100000, received by the board
from all sources, shows net expend-
itures of 1885,, ,000.0 900. although the
public records show S1,000,000, to
be all that had been appropriated
by congress for the year This is
an astounding case of absolute de-
ception of the country and of con-
gress. 1t will be a shock to con-
gress, as it was to the president to
hear that the net expense of this
enterprise paid out of public funds
last year was $3.50, ,000, 600"
Chairman Lasker explained that
the extra funds to keep the estab-
lishment going were obtained chief
fy from the sale of 100000, 900 of
capital assets, ships and supplies,
plus $50, 100000 of a balance from
funds left from last year
Operations Cost 500, loot. 900.
approximately 5000. .000.0 rep
resents the absolute loss on opera
tions in the fleet" he continued, |
land then there was 100000. 900 |
spent on ship construction. What
these newly acquired assets are
worth is highly questionable.
The plans for the steamer Amer !!
ican Legion, which starts on its
first trip in few days, were re |
drawn seven times and it is easy to |
see how it could run up the costs. |
First, the American Legion was an
army transport, then navy trans |
port, then a hospital ship, then it
was determined to make her q cat
tie boat, and after spending money
on all these blue prints, it was de-
cided to transform her into a pas
senger ship-and she is a beautiful
and fine passenger ship. But she
cost between $4,000 900 and 81 ,000.-
900 before she sailed her first mile.
Her real worth is probably half her
cost. So you can see the assets
are pretty sick assets. But, after
all, there is an asset So that our
task is to make what was liability
into an asset"
Public to Get Facts.
President Harding has instructed
the board that the public is to
have the facts-alI the facts" Mr..
Lasker added. The ships are being
operated on a commission basis,
under contracts that cannot be dis
continued Immediately he said, and
we must grin and bear that sys-
tenn for some months to come"
Il have actually heard of a boat
turning back in mid-sea, to take on
a cargo On which the operator
made 81 900, he remarked, land the
government lost s8,000-and this
boat was half way across the China i
sea when they turned her back to
get that cargo at Manila. Anybody |
can see that a system where the
operator has nothing at stake, |
whereby the government loses and /
he wins, is a system that makes for /
ineficiency-'
Generally business conditions of /.
the shipping world. Mr.. Lasker said,