The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1943-04-08
Officials Fdvored
Big Shipbuilders
AFL Report Shows
Assistdnt To Knox Respon-
sible For Cancellation
Of Higgins Contract

Washington, ID. c. ULNS)-Big ship
building companies We're favored by
Government officials at the expense OF
the Higgins Corporation plant at New
Orleans. it is charged in an American
Federation of Labor report made last
fall but kept secret until revealed in
Congress.
Joseph w. Powell, Special Assistant
to Secretary of the Navy Knox, was
the Higgins Corporation contract, the
AFL report declared The report has
just been made public by Senator
George ID. Aiken of Vermont, with the
permission of President William Green
of the AFL.
In addition to Powell, the AFL re-
port criticized Rear Admiral Emory
S. Land, chairman of the L. s. Mari
time Commission and Rear Admiral
Howard l.. Nickery, vice chairman as
also favoring the big Shipbuilders.
After the Maritime Commission last
summer cancelled the Higgins CON
tract for construction of 200 Liberty
ships after considerable work and
money had been spent on shipyards at
the Higgins plant, the AFL ordered an
inquiry, conducted under the direction
of Charles j. Margiotti, former EAttor-
ney General of Pennsylvania.
"Ths committee finds said the re-
port, that the cancellation of the Ilig-
gins contracts did not occur because
of a of hprllISn a
any other of the collateral reasons
given by the Maritime Commission.
The only and real reasons for the can
ceHation were: (O favOritiSm toward
existing conventional ShipyardS, many
owned by large companies; (h) fear
of competition that would result from
mass production through unique assem-
bly, line methods in Shipbuilding, and
(c) unjuStifed personal animoSity TO-
ward 4. j. Higgins Sr.' (head of the
companyD
The actions of Admiral Emory S.
Land and Howard l.. Nickery, MEM
bers of the Maritime Commission. and
Joseph w. Powell, Special Assistant
to the Secretary Of the Navy, have
Decll SO detrimental 10 tilt Stiltidi Wei
fare of our country and our war ef-
fort, that this committee recommends
that such action be taken against these
men as the fact and circumstances
warrant"
Old-Linc Shipyards Protected
The report said Powell was II
former vice president of the Bethle-
hem Shipbuilding Corporation, Il Beth
lehem Steel Corporation affiliate
pointed out he was cenSured by the
Supreme court in Il Bethlehem case
involving World War | contracts and
continued:
by eliminating the Higgins plant,
Mr.. Powell and the Maritime Commits
sion succeeded in re-eStabliShinG their
policy of protecting the Old-line ship
wards. Mr. Powell was in Il most favor
able position to exert influence against
the erection Of the Higgins plant; first,
because Of his power as Assistant to
the Secretary of the Navy; second, be
cause of his 4O-year friendship with
Admiral Land and his close connection
with other members of the Maritime
Commission and third, because of his
close connection with the big ship
building firms which are subsidiaries
of the large steel firms Of the nation.
"In the light Of Mr.. PoWel'S past
activities during World War | and his
general background and connections,
this committee believes that he in
fuenced the cancellation of the Hig-
gins contracts"