The Wilmington morning star., 1946-09-24
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FROM PAGE N

Johns River Shipbuilding company,
of Florida-$2, OSO, 900 return for
$500 investment.
Kaiser Record
Henry j. Kaiser, wartime Paul
Bunyon shipbuilder, was one of the
chief witnesses as the committees
probe got underway.
Ralph e. Casey, general account
ing office attorney, cited the mari
time commission figures showing
that companies owned or controlled
by Kaiser made profits estimated
at 1892, 237, 284 on a total capital
investment of 2 ,510, 900.
Kaiser defended his companies
operations, insisted that invested
capital was not the main standard
for war production, and declared
that 1--WE employed over $32, DOC, 900
of risk capital obtained from
private sources for the wartime
operation of the seven shipyards
uIluSI Oui lIlo3loS ASA
Casey reported that all 10 COM
panies operated shipyards built ell
tirely with government funds. Cit
ing what he called "unreasonable'
profits, he said:
Il dare say that at no time in
the history of American business,
whether in wartime OF in peace
time, have so few men made so
much money with so little risk
and all at the expense of the tax
payers, not only of this generation
but generations to come
The general accounting office,
Casey added, viewed the wartime
shipbuilding program as "a com
plete exemplification of all the de-
fencies in government wartime
procurement"
only Managers"
The shipbuilders, operating un
der maritime commission con-
tracts, he said, were really only
managers of government S%hipyards
and enviable managers at that,
inasmuch as no skill or ability was
required to make money when you
consider the extent to which the
maritime commission went not only
to insure them against loss but tc
guarantee them huge profits"
Someone, he commented, SHOULD
come forward with a satisfactory
explanation" adding that in many
cases "it looks as though the only
know-how covered by the fee was
knowing how to secure a contract
from the maritime commission"
Kaiser branded as wholly I'M
true" statements by some con-
gressmen that he Operated ship
yards on only 500, 900 capital"
I'VE, the Kaiser men and women,
did an outstanding job" he de-
clared. Were proud of it. We
alone produced 27 percent of the
entire maritime ship program. We
$3.50, 900, 900 to the government or
Liberty ships alone. We provided
the organization, the major portion
of the operating capital, the brains.
5 and the drive"
/ In addition, he said, Kaiser en-
: terprises performed more thar
| S210, 0OO, 900 of construction for the
t government without profit.
JTo;,D, cumulative {Lof hn a1orc
was required by the committee tc
: furnish data on personal dividends
and dividends of his family. He
said it is difficult to understand
l why the same question was moi
asked "of the Pew family or OF
others who also engaged in war
time shipbuilding."
Chairman Bland (D-Va.) indicat-
ed that other operators will be ask
ed to testify this week.
! WASHINGTON, Sept. 23.-(P0-
Maritime commission statistics
given a house merchant marine
. subcommittee showed these figures
Monday on the capital investment
and estimated profits for 10 war
time ship building companies:
Barrett and Hill shipyard, capital
investment S3,611, 664, estimated
profits 1914, 636.
, Bethlehem = Fairfield Shipyards
Inc, capital investment 81, 900, 900
] estimated profits $53, 9O6, $50.
! California Ship Building Corp,
capital investment $500, 600, esti-
mated profits $44 423, Ola.
Consolidated Steel Corp, LTD.
capital investment Sc, 1896, oil, esti
mated profits SIG, 445, 861.
Delta Ship Building Co., Inc,
capital investment, $3.50, 900, esti-
mated profits So. III, 81.
East Coast Shipyards, Inc,
capital investment SLAB 800, esti-
mated profits $500, 900.
J. A. Jones Construction Co.,
Inc, capital investment 81, 900, 900,
estimated profits So, O26, 1888.
Kaiser Co., Inc, portland, Van
> couver, and Richmond Yard No. -,
} capital investment S100, 600, esti-
| mated profits s43, CAT, OPS.
Kaiser Cargo, Inc, capital in
vestment $500, 900, estimated profits
81, 345, 900.
MoC1ocxov and Co (San ,Jacinto