Evening star., 1943-03-31
Maritime Commission
Probe Demand Pushed
Despite Land 0. K.
Senate BIoc's Request
Backed by New Charges
From AFL Committee
By the Associated Press.


Reinforced by fresh charges
supplied by organized labor, a
small Senate bloc pressed anew
today for an investigation of the
Maritime Commission despite
overwhelming confirmation of
President Roosevelt's nomination
of the commission chairman to
a new six-year term.
After five hours of bitter debate
yesterday 10 Senators voted for re-
tention of Chairman Emory S.
Land. There were five negative
ballots, from Republican Senators
Aiken of Vermont, Holman of Ore
gon, LANCER of North Dakota. Ship
stead of Minnesota and Tobey of
New Hampshire.
Senator Aiken submitted 10000
word report by an American Fed
Grafton of Labor committee accus-
ing Rear Admiral Land, Rear Ad-
miral Howard L. Vickery, another
commission member, and Joseph w.
Powell, special assistant to the Sec
retary of the Navy, of conduct "det-
rimental to the general welfare of
our country and our war effort"
Opponents of Admiral Land re-
iterated that their criticism was not
directed at him personally, but at
the commission which he heads.
Revolving Scandal" Charged.
Senator Aiken declared his charges
of collusion and mismanagement
against the commission had only
scratched the surface of what is
destined to become the most revolt
ing scandal in the history of ma
tional expenditures.
The AFL committees report was
alleged to be based on an investi-
cation of the commission cancel
lation of shipping contracts of An
drew j. Higgins, New Orleans ship
builder, last July.
The report said the commission.
"by factual Misrepresentation and
concealment of material facts" had
claimed that steel shortage forced
the cancellation.
The committee. however listed as
the only and real reasons for the
cancellation:
"Favoritism toward existing and
conventional shipyards, many owned
by large companies; fear of COM
petition that would result from mass
production through unique assem-
bly, line methods in shipbuilding,
and unjustified animosity toward A.
j. Higgins, sr.'
BaHxIey Defends Land.
The committee declared that while
the commission explained its can
cellations by referring to A letter
to Admiral Land from War Produc-
ton Board Chairman Donald M.
Nelson on the steel situa ton, the
letter actually assured Admiral Land
he would get all the steel he need
ed for the Higgins program.
The actions of Land, Vickerv and
l.
been so detrimental to the general
welfare Of our country and our war
effort, that this committee recon-
mends that such action be taken
against these men as the fact and
circumstances warrant
In reply to these accuse ations, Ma
jority Leader Barkley said that
nothing could be more discourag-
ing to this country than to kick
Admiral Land out" He praised the
commission chairman as a man of
intense integrity, intense honesty
and convictions.
Other Charges Made.
Senator Aiken, in addition to
bringing up the AFL report, ac-
cused the commission of seven
charges of alleged misconduct and
collusion. He said it had:
l. Requisitioned ships for sale to
the Army and Navy and reimbursed
itself for certain costs from the
funds of these departments in a
manner not authorized by law"
3 Failed to recapture excess prof
It's from shipbuilders "although re-
quired by law to do so"
3. Paid illegal and exorbitantly
high prices" for old ships.
a. Insured old ships at excessive
values.
5. Approved charter rates which
resulted in excessively high prof
It's for certain selected ship op-
orators
s. Permitted waste, extravaganza
and incompetency' in shipyards it
controls.
7. Allowed ships the commission
virtually owned because of default
of debtor corporations to go into
private hands and then paid the
new owners eXorbitant prices for the
same"
Commission Policy Cited.
Meanwhile, in testimony today to
a House Merchant Marine subcom-
mittee. M. l., Wilcox, a Maritime
Commission official, declared that
the commissions policy of deferring
Slllp ItuulSlIlO III 1874 UNI IL
values could be reduced saved the
Government at least S2l 900 900 a
month AS long as requisitioning is
necessary.
Had the action been resorted to
as soon AS the commission obtained
authority in May. l94l, Mr.. Wilcox
said, rates would have been frozen
to average about So a deadweight
ton a month on a time charter
basis.
On the other hand, he added, by
continuing its efforts to secure VOL
untary rate reductions. later imple-
mented by the Ship Warrants Act
giving the commission a lever to
force rates downward, requisition-
ing was possible on a basis of about
$3.50 per deadweight ton per month.
Mr.. Wilcox made the estimate in
defending commission policies in
arranging VOYAGES of American YES
sells tn the Red Sea in tho Spripo