Evening star., 1942-07-21
HigginsContract
Cancellation 10
Be Investigated
House Subcommittee
Named; Shipbuilder
Here for PorIeys
By tn. Associated Press.

B, tn, Associated Press.
The House Merchant Marine
Committee named a special sub
committee today to inquire into
the circumstances surrounding
cancellation of contract given
the Higgins Shipbuilding Corp.
Of New Orleans to build 200 cargo
ships.
The Maritime Commission ex-
planned the cancellation Saturday
by saying there was not enough
steel to 60 around. A. J. Higgins,
head Of the firm, protested and ex-
pressed the. opinion there might be
some further reason.
Mr.. Higgins. in Washington today,
said what course I follow will de-
pend on public reaction to The move
that has been TAKEN He refused
to elaborate on his announcement
in New Orleans yesterday that his
yard would build giant flying boats
instead of ships.
Peterson Heads Subcommittee.
The subcommittee. headed by Rep
reSentative Peterson. Democrat, Of
Florida, was instructed to inveati-
gate the contract. the reasons for
the contract, any pressure exerted,
terms OF the contract, the amount
expended by any person in secur-
ing the contract, the amount ex-
pended under the contract, justi-
fication for the expenditure, progress
made, reasons for the cancellation,
terms of the cancellation, loss to the
United States by reason OF the can
collation., and any other pertinent
matters"
Serving with Mr.. Peterson are to
be Representatives Bonner of North
Carolina, Domengeaux of Louisiana
Sullivan Of Missouri. Democrats;
OBrien OF New York and Van Zandt
of Pennsylvania, Republicans.
Mr.. Higgins came here from New
Orleans and saw several aides at his
hotel today before embarking on a
round OF of1cial calls. He would not
say Whist officials he was going to
see, or whether he hoped to carry
his case to President Roosevelt.
This thing Is bigger than I am or
my cf1Anixation IS" he told report
ers. I'VE are In 4 war that we have
to win, and what course / follow viii
depend on public reaction to the
move that has been taken"
Mr.. Higgins questioned the wis
dom Of . congressional inquiry into
the contract cancellation.
This is an administrative deci-
sion," he said, "and it was for one
man to make"
Plans to See Kaiser.
Mr.. Higgins, before leaving New
Orleans last night, said his plant
there would be used to construct
the lotion flying boats. Henry j.
Kaiser, West Coast shipbuilder, has
proposed the construction of 5000
such craft yearly in nine converted
shipyards as the means of overcom-
ing destruction by submarines. The
New Orleans builder stated he would
confer with Mr.. Kaiser here.
First demand for congressional
probe came from Representative
Domengeaux, Democrat, OF Louisi.
ana, member of the House Mer-
chant Marine Committee, which now
Is operating under special authority
to conduct studies of all matters
under its jurisdiction dealing with
the war effort.
Representative Hebert, Democrat
of Louisiana quoted Mr.. Higgins az
blaming the cancellation on the
efforts Of certain so-called dollar
a-year men to protect the big steel
interests of the North
Representative Domengeaux de-
clared there were many suspicion.
circumstances surrounding the Who'll.
mess.
Maritime Board Praised,
Mr.. Higgins, however, commended
the Maritime Commission, sayinf
"all my dealings with the commits
sion have been friendly. and 1 fine
1t a compact, fast-working group
unaffected by red tape"
The Maritime Commission sale
Saturday in announcing cancella
ton of the contract that Mr.. Hig
gins had called for greater expendi
lures than in his original estimate
and that shortage of steel made i
advisable to increase production II
existing plants rather than built
new facilities.