Omaha daily bee., 1922-05-12

ing administration and republican
congress has had. therefore. two
things 10 do; First 10 overcome the
erroneous impression held by for
eign countries and convince them oi
the necessity Of paying these debts.
Second. 10 obtain from them the
properly authorized bonds 10 repre-
sent these debts. Even after the al.
most ineAtrieable confusion that had
been created by the last administra.
ton IN the matter. when bill was
brought IN by the ways and means
committee 10 appoint q commission
and adjust these debts, the democrats
OF both house and senate opposed
the project almost to a man.
Shipping Beard Loss.
I'm 1910. as q part Of the ma
ehinefy for stimulating the building
OF a merchant marine. by ae, OF
congress- the shipping board was
created. Alter the declaration OF
war. congress. by the urgent defi-
cheney act OF June II, 1917, con-
ierfed vast additional powers upon
the president. TO requisition and build
ships This power. by executive or
der. dated July II. 1917. the presiden,
delegated 10 the Emergency Fleet
corporation. Thereafter occurred the
mons'rous expenditures Of our ship
ping program, They cost us $500
UW,OO0. Contracts were made with
anyone aud everyone who said nc
could build ship. or anything for
one. irrespective OF price or quality.
There was no uniform plan for these
ships adopted. No thought was
given TO what use the ships might
be put after the war. There were
no cancellation clauses in the con-
tracts. so that IL the war ended, the
work might stop. Five hundred
aud ciahty-ninc wooden ships of
1852 dead weight tons were built,
costing approximately S575.0O0, 900,
and which were absolutely WORTH
less. Thirty concrete and compost
tion ships, costing about $4,000. 900
more. were equally worthless. Two
thousand, two hundred and eighty
eight ships altogether were built and
delivered. Only about $50 Of these
were delivered before the armistice
and all the rest, or about 1883, have
been delivered since the war was
over, and the further necessity for
them had disappeared. Because of
the contracts, which had no cancel
lation clause and the incessant pres
sure of the democratic administration,
ship building when on feverishly un-
Ill the present administration came
into power. One thousand, one hun
dred and eighty ships were delivered
III 1919 and 473 in 1920, the most
shameful part Of which was that in
1919, 408 Of these were. wooden ships,
and in 1920 6l were wooden ships,
conceded by all to be worthless.
u@ ing andr aoinetaointaoin nu nu
when the present administration
came in on March 4, 1921, it tried
to take stock. 1t now finds about
100000 tons of steel ships which
are salable for approximately $780,
100000. and estimated other assets
Of $l90000,0O0. 1t finds claims pend
ing against the government of $685.
428,845.59. which, if allowed in full
would just about wipe out all our
assets and leave US nothing to show
for our $500, ,0O0, 600 of the peoples
money expended. Countless millions
had been sunk in Hog island and
every other mudhole in the country.
To show the rank incompetency of
the preceding administration. it has
been found that mortgages and other
liens securing the government for
vast sums had not been recorded
and the liens were lost. Liens for |
millions which should have been |
taken were not. Vast sums for re-
pairs and reconditioning were charg-
ed against the corporation for things !
which the slightest care might have !
ships had been sold with
out cent of deposit or a letter Of
security; vast contracts, uncanccl- |
liable, for materials were found. To
a contract to take 40,000,- |
600 barrels of fuel oil year. The
board is involved in 50 concerns
which are in the hands Of receivers. |
Three thousand, FIVE hundred law
suits in the civil courts are pending |
and $62,73o,3ls76 of claims in the |
court of claims, and a business which |
is now losing $4,000. 900 month.
Take Over Railroads.
"Pror ito the world war, no coun-
try had healthier railroad condi- |
ton than did the United States. Ser
vice was speedy, rates for passage
and freight carriage low, and the
roads were making fair returns upon
capital invested. In the two and one
half years from the outbreak Of the |
European war until our own entrance
into that war, this condition CON-
tinued. In the military appropria-
lions bill Of August 29, 1916, = pro- |
vision had been inserted authorizing
the president, in time of war, to
take possession and control Of any
system of transportation and to use
the same as might be needful or
necessary in the emergency. I'M
after the entrance Of the
United States into the. war with |
Germany, various semi civilian, semi |
officials, boards were set up which
began to issue various and conflict |
ing priority shipment orders. So |
great became the confusion and con-
gestion that the ports Of the east,