Evening star., 1942-07-25
Higgins Aide Charges
Knox Adviser With
.Shipyard Favoritism
Navy Heads Assistont
Former Bethlehem Man,
House Committee Told
Ps TIE Associated Press.

Ps TIE Associated Press.
Men acting as advisers to high
Government officials while retaining
connections with steel and ship
building corporations were accused
yesterday by Higgins Corp. exec
utive Of influencing decisions to
cancel contract for new ship
yard and 200 cargo vessels.
The assertion came from L. E.
Detwiler, assistant to the president
of the Higgins Corp, New Orleans,
in testimony before a merchant
marine subcommittee studying can
collation. of the contract awarded
the Higgins company by the Mari
time Commission.
Mr.. Detwiler said that Secretary
of the Navy Knox "is not a ship
builder, he is a newspaper pub
Usher and has to rely on Joe
(Joseph W. Powell, who came
from the Bethlehem Shipbuilding
Corp" Mr.. Powell is an assistant
to the Secretary of the Navy
Bland Resolution Fails.
Meanwhile, movement on the
House floor to ask the commission
to suspend its order cancelling the
contract failed A resolution making
that request was offered by Chair
man Bland of the Merchant Ma
rine Committee but immediate con-
sideration was denied by the House
after Speaker Rayburn described it
as unusual procedure" because the
committee had not considered the
resolution formally. Representative
Bland said a formal meeting would
be held Monday.
Earlier, Mr.. Detwiler had told the
subcommittee investigating his COM
pany's contract, that he had been
told by Mr.. Powell that mo new
yards could be opened except by old
line companies"
That assertion was followed by
statement from Andrew j. Higgins,
company president. that he had
been told by Navy officials not to
build his New Orleans plant.
Mr.. Higgins added a prediction
that those gigantic plants of mine
in New Orleans may be out of order
soon because of testimony I am
giving here"
Influence" Charged.
Mr.. Detwiler asserted in his testi-
mony that influence" had been
used In other quarters. Asked If
those influences brought about the
cancellation" he replied Eyes"
Representative O'Brien, Republi-
can, of New York asked whether
he believed the contract would have
been cancelled "if the Maritime
Commission had been left alone. :"
They wouldn't have acted as
they did if they hadn't been in
fuenced from outside" replied Mr..
Detwiler.
Who is running the Maritime
Commission?" Representative Welch,
Republican, OF California asked
Mr.. O'Brien.
II very definitely do labor under
the impression that some one else
dictates the policy of the commits
sion," replied Mr.. O'Brien.
IF they (the commission) are
not carrying out the law, then they
are not competent" asserted Mr..
WEIGH.
Higher ups in the administra-
ton have dictated policies OF
bureaus rather than the bureaus
themselves" Mr.. O'Brien asserted.
Earlier Mr.. O'Brien had observed
during an exchange of comments
with Representative Welch that
Joe Powell is running the Mari
time Commission.
Mr.. Detwiler, asked by the COM
mittee to get down to brass tacks"
In stating his opinions about the
cancellation. asserted that the
"shipbuilding trust feared competi-
ton with the Higgins production
line method Of ship construction.
He said that Mr.. Higgins and
Henry Kaiser, West Coast ship
builder, had worker together on the
production line principle, and that
after Mr.. Kaiser demonstrated that
the system could be effective "the
Shipbuilding trust knew we could
better Kaiser's speed by at least so
per cent
When that got out it was known
something had to be done to stop
that situation" he declared.
| Asked whether he believed 'they
figured this was the death knell" of
the present system of shipbuilding,
he replied that he did.
Kaiser Plan Recommended,
Mr.. Kaisers plan for Government.
production of huge cargo flying boats
to get around the submarine menace
met with the approval of Repre-
sentative Casey, Democrat. of Mas
sachusetts, who reported at the
White House that he had recon-
mended it to President Roosevelt.
He said that Massachusetts had
facilities for such production.
Senate Minority Leader McNary
said in a statement that the pro-
posal should receive profound study
from the military and naval experts
and the thoughtful consideration of
Congress"