Evening star., 1933-09-27
CRUISER AWARD
UPHELD BY M'CARL
AIifas Agrees With Legal RuI-
ing, but Holds Agreement
Was Violated.

The Navy was within its legal rights
in assigning the heavy cruiser U. S. S.
Vincennes to be built by the Bethlehem
Shipbuilding Co., Controller General j.
r. McCarl has ruled, it was learned to-
day, although the service has altered
the number of the vessel and charged
its construction to other public funds.
Mr.. McCarl today sent letter to N.
P. Alias, president of District, No. A,
International Association Of MachinistS,
in response to a query from the labor
leader. who asked the controller general
to withhold payment of public funds to
the Bethlehem firm on the ground that
the law requiring the cruiser to be con-
structed in a navy yard had been v1o-
lated Conceding the controller gen.
eral is correct in his finding, in view OF
the altered numbering and change OF
public funds, Mr.. Alifas charged that
the Navy in doing this has violated a
"gentlemen's agreement" between the
White House, Secretary of the Navy
Swanson, leaders in Congress and labor
officials. He intends to bring up the
matter at the American Federation OF
Labor Convention here.
Legal Objection Secuted.
The controller general wrote: 1.-THE
Secretary of the Navy reported Sep
tember 20, 1888. that the cruiser being
built by the Bethlehem Corporation
would be remembered No. A and the
cost thereof charged to funds allotted
under the national industrial recovery
act, while the cruiser building at the
Navy Yard, New York, would be re-
numbered No. 40 and the cost charged
to increase of the Navy Irregular ap-
propriations).
There appears no legal objection to
the department selecting such nomen-
clature and numbers 20 designate the
cruisers as it may deem desirable, and
it cannot be said that the authority
conferred in the national industrial
recovery act is subject to the limitation
contained in the prior act of February
13, 1929, in so far as concerns the allo-
cation of the cruisers to navy wards or
private shipbuilding firms for their con-
struction and the administrative selec-
ton of nomenclature and numbers to
designate them for construction pur-
poses.
You are advised accordingly"
Charges Agreement Ignored.
Mr.. Alias now views the situation
thus: II regard the Controller Cen
erals Office as absolutely correct as far
as the Controller Generals office is
concerned. But the Navy Department
is still not adhering to the gentlemen's
understanding, which was reached be-
tween our group and the White House
the Secretary of the Navy and leaders
of Congress, which was to the effect
that if our friends in Congress would
refrain from attempting to amend the
national industrial recovery act. when
it was before Congress. SO that they
would be required to assign to the navy
wards half of the naval vessels, author
lied by the national industrial recovery
act, the department would assign 81
per cent of the vessels to the navy
yards.
The mere shifting Of the number.
designating the cruisers in lieu OF CIV.
ing the navy yards this additiona
cruiser. merely results in the navy
yards receiving only is naval vessel:
out of the 80 authorized by the ma
tional industrial recovery act and tht
private shipyards receiving II. W.
something to say about whether thai
pentlemen's agreement shall be livet
up to and we surely intend to take thi'
up at the forthcoming convention o.
the American Federation of Labor"
Charges Discrimination.
Mr.. Alifas said that the Vincennes i
being constructed at the Fore River
Mass, plant of the Bethlehem Ship.
building Co. He and his colleagues de.
sired that this warship be assigned tt
the New York Navy Yard.
I'VE are not satisfied with this,
said Mr.. Alifas. "The Navy claims thai
| It has given the navy yards half of the
money, as it has given them all Of the
ordnance work. but they were getting
that any way. We expected to havt
half OF the vessels built at navy yard
and on the basis OF tonnage. As 1t Is
the Navy has awarded the heavy vessel
| to private shipyards and the Aght one.
to navy yards. The 1900 destroy