Evening star., 1942-08-05
Truman Raps
avyHand|ing
0fHiggins Case
Condemns Ship Bureou
For Negligence or
WiIIful Misconduct
Earlier Story on Page A-b.)
,, the Associated Press,

Earlier Story on Page A-6.)
,, the Associated Press.
NEW ORLEANS, Aug. S.
Strong condemnation of the Bu-
reau Of Ships of the Navy De-
partment for negligence OF
wilful misconduct" in dealing
with matters concerning the
Higgins Industries, Inc, Of New
Orleans was contained in a let
ter from Senator Truman, Dem
ocrat, of Missouri, to Secretary
Knox which was made public
here today by A. ]. Higgins, ship
builder.
Senator Truman spoke for the
Senate committee Investigate ting the
war program in the letter which
was written in Washington yester-
day, and copy of which was sent
to Mr.. Higgins as an interested
party.
"Our committee cannot condemn
too strongly the negligence or wilful
misconduct on the part of the Bu-
reau of Ships entrusted with this
vital matter" Mr.. Higgins said Sem
ator Truman wrote Secretary Knox
Mr.. Higgins made public only parts
Of the letter.
THE biased and prejudiced treat
ment received by Higgins Industries.
Inc, from the Bureau of Ships is of
secondary interest" the letter con-
tinued, but company possessing
the skill and energy in both design
and construction now admitted by
the Bureau of Ships ought not to
have received the treatment ac-
corded to it in this manner"
Steel Industry Warned.
Earlier the steel industry was
warned th6t sales of this war-vital
metal in just-under carload lots in
order to obtain higher-than-carload
prices is an evasion Of OPA regula-
tions.
OPA Director Leon Henderson is
sued this statement through the
District OPA office here today while
q congressional committee continued
hearings, which yesterday produced
testimony that this form of steel sale
was common.
This broader problem was pro-
jected into the war industry picture
as an offshoot of q House groups
inquiry into the closing OF the Hig-
gins shipyards here when Frank
Higgins testified that procurement
of steel from mills was slow and diff
ficult but it could be obtained
promptly from any number of bulg-
ing warehouses by paying premiums
under the short lot purchase plan.
Mr.. Higgins told the committee
that his company, In which he is
associated with his father, A. j..
Higgins, had made such purchases
and that the practice was common.
Two-Way Inquiry.
Immediate repercussion were
promises of two way inquiry-by
OPA and Congress-into what Mr..
Higgins and committee men prompt
~ labeled a black market" in
steel.
Mr.. Henderson's statement said:
Revised price schedule No. 49
provides that mill carload prices
shall be charged for straight car
loads sold out of warehouse stock
''The schedule establishes 10000
pounds as a minimum carload ship
ment on iron and steel products with
the exception of rails, where min
tmum carload lot is $4,000 pounds.
Splitting of orders into near car
load shipments. or encouraging Gus
toners to place orders for not over
80 ,99e pounds with the intent of get
ting the higher less than carload
price is an evasion of the law.
THE fiat statement by seller
that 10000 pound orders will not
be accepted, the obvious intent be-
ing to force the buyer to split 40
900 pound requirement into quanti-
ties commanding higher price, is