The evening world. Newspaper, November 17, 1920, Page 3

RE Re SHIP BOARD PAID MILLIONS TO TAKE OVER CONTRACTS Huge Sums bolt in Final Settle- ment of Claims of Vessel Builders. AUDIT SYSTEM ‘CRUDE.’ Witness at Graft Investigation Stinnites $2,000,000,000 Was Paid in Was . Martin J. Gillen, former executive assistant to Chairmen John Payne and Admiral Benson of the Shipping Board, told the Conyres- sional Committee this afternoon that when Alonzo Tweedale was tr Barton made surer of the Shipping Board and the Emergency Fleet Corporation on Aug. 1, 1919. no record existed either office which showed how the two and one-half billion dollars ex pended up to that time had been dis bursed. Neither was there any rec- ord, he said, of $240,000,000 worth of | securities, including mortgages and Liberty Bonds belonging to the Flent Corporation. These securities were | Jater found deposited with a Phila- | delphia Trust Company, he said. in Testimony of fabnious sunis paid by the Shipping Boahd to take over contracts for vessels under construc: | tion during the war, and of auditing methods under whose nes the board never ernde wi knew w re it stood financially, was given to-do Wefore the Congressional Commnittee | nvestigating charges of ¢ and mismanagement in Shipping Board operations, The evidence was given by Martin J len, former executive assistant to ge Barton Payne when he was Chairman of the Board and once trustee of the Emergency Fleet Corporat : Among the shipbuilding yar taken over when America entered the war, Mr. Gillen testified, were some in which 451 ships were be built for citizens of Norway, Italy, France, Denmark and Japan, It was necessary to lJearn,+ hé said, the amounts paid to the contractors upon the uncompleted vessels, the r quisition programme concerning the | ships involved $800,000,000, But before inventories could be| made of the sums paid and of the amount of material on hand for the completion of the ships, he said, large payments were made by the contractors, and the not later available. lost in final settlements of ¢ those who originally contr the vessels. Norwegians, Mr. Gillen said, claimed 340,090,000 for twenty-seven ships under construction when taken oy by the United States Government, and were finally paid 4,500,000 April, 1919, although, the witness sz he had never been able the basis upon which the made, Whate the basis w he} declared, his investigations proved to | him that the award involyed an over- payment of $22,950,404, — In July, 1918, contracts were taken}! over for the building of two boats, he said, ordered from Skinner & Eddy contractors, by the Japanese firm of Matsui & Co. An initial payment of $3,500,000 on the $6,000,000 contract | was made by Mitsui & Co. The| Japanese firm never has received money, Gillen testified, The Shipping Board's recor §,000 voyage accounts were stich a chaotic condition October, 1919, only eight the board to records were Huge sums were ims by cted for in al scover award was 8, to 1s of its ki in that up go of the & Mrs. F user, Mrs. Fre NER Genan: Mr William Mall ( m, Mrs, Henry Griswold Gray, Mrs, Preston Gibson, Mes, }@. Havemeyer, Mrs. Lyd “ , Mine. Lavolsky, Mrs. | isohn, Mr Nicholas (e) (e) Ho He Rogers, Mrs | vounts could’ be found to have been| yet, Princess Francesen | audited, Mr. Gillen tgstitle Mrs, Charles Carr umsey, Mra ) When the war broke out, he said,| Charles H. Sabin, Mrs, Herbert ship the Government appropriated man, Mrs, Joseph B. Thomas, Mrs F 400,000,000 for the Shipping Board's | f k Tower, Mrs. Dorot 34th Street—New York use, and up to Oct, 1, 1919, the Bourd| jor, Mrs. Allan Gouyerneur Wellman, | Miss Mary Hoyt Wiborg, and Mr received in profits $40,000,000, He quoted the figures to give an idea of how much money the Board had han: died, Vast sums, he sald, were ex pended of which the Board had no knowledge; no supervision was ex oreised over the expenditures and the accounts rendered by the audit ing department. The witness learned in October 1919, that of the nty-seven N York banks acting a8 deposito: Shipping Board funds, eight banks had ,250,000 of Shipping Board money, and he estimated from his investigations —f $5,000,000 to $6,000,000 more was held by a number gf ship operators who maintained bank Accounts in thelr own names with Shipp ng Board money, A report made by him to Mr Payne, he satd, accompanied by vec ommendations of changes: which would enable the Board to keep ac- curate account of yoyage funds, re- sulted 4n 900 accountants being put to work with auditors to bring up to date the 8,000 voyage accounts. The audited agcounts, he declar ved there was $120,000,000 of ex funds In tho hands of ship rators, The comptroller's depart t of the Shipping Board had ly broken down” before this time, leclared Mr. Gillen declared that “the or! nal Investment of $8,400,000 Inv. ine 3.100 sivipa, had #o Aeprectited, due to the decreased price of tonnage, the present value waa $2,00,000. market price per ton for these day 18 $124 ‘The Shipping asking $160, and as a result hips ure tled up in the a hij Board |s most of these sone, De sa he Construction Division of the Shipping Board, Mr, Gillen Costifed, purchased $62,900,000 worth of sup- plies and shipped them to contrac- tors building ahips, No record of this | } Mrs. N jam H Mrs, Sidi ms 1 Roy | ‘ake Willlam Wright SR eee exests eles Extraordinary Reduction— with the auditing department =| In setting the claims for oe m- | apne an aivard Gf $700,000) to tne | 150 Women’s and Misses | witness, which Penang i hone Custom Tailored owners ‘demanded gettlement — for $10,000,000 » Shipping Board paid —. The Norwesian owners of fifter See OR Nae aati, ante Formerly Sold to 100.00 second claim, put in a claim of $14 1s7 these hips They were offered 2,506,387 in final ttlement Mr, € n said that representatives f these Norwegian owners badgered President Wilson ordered the Ship: nnd ma Aust SRereRt Plain or Fur Trimmed bay & Jones had contracts for forty ‘o ships 10 he delivered to the © - . . PaiComens, (a keitien diem tie wo Fas... nable Box Coat or Belted Models ve Th mo ete | olved \ I eeathoortos., “Atm Chinard line pktd’ fo Silvertone and Velour de Laine. Nutri. Cee ar sa atnaye Uvhen ota and Australian Opossum Collars or plain tailored. payniont wan discovered the Shipping . Board took steps t sum, MME, Cilllen naniitted tat, $2,000,000, Positively No Approvals, Exchanges or Credits waste to the fallure of the Shipping Hoard from tts Inception to establish ® practical aggounting system, THE “EVENING WORLD, WEDNESDAY, NOVEMBER 17, 1920. “New York Society to Pay SAYS MANY DIE Horse the Better Groomed FEATURING SUBTLE EFFECTS THAT EMPHASIZE THE SPLENDID TAILORING, AND ELABORATED WITH MAGNIFICENT FUR COLLARS | THE VALUES Thursday | i i aia WIDE ENVELOPING WRAPS OF VEL DE CYCNE SILK STITCHED AND TOPPED WITH DEEP MOLE COLLARS —-<; = Suits EMBRIVERED WRAPS OF BOLIVI4> CLOTH, WITH EXTRA LARGE COLLARS AND CUFFS OF RINGTAIL OPOSSUM hal Ao a PRR ee GRACEFUL SWEEPING WRAPS OF+ LUXURIOUS ‘FORTUNA WITH DEEP of Veldyne, CQLLARS OF NATURAL SQUIRREL ja, Moleskin 8 PASQUALE ON TRIAL; ‘America’s Tribute to Italy’ At Horse Show, Not Society Likely to Get 20 Years for Sesond cay ation Amid Plenty” in I Ll Murder, and Life World's Wonder City, As- MISS GARRISON Yes, Horse Has Come Back, r Kidnapping. V TO BE BRIDE OF Show F: | = In a Real enetian Ball seris Dr. Sears. but Horse Show Fashions | Montustows. pa, Now 7—Auguat NN“ sone the wonder city LIEUT. NEILSON Have Not, for They Are Panquate, confessed abductor and singer ipprostinately 6,000,000 ¥ : ae of Baby Blakely Coughlan, pleaded perdGnd de) Avery yune et Uninteresting This Year. «| sutity to murder tn the second degriet creed, whose songs are heard in to Kidnapping when place © trial Deliveries Deere Suftisentl : ; ae in = a be outh Afriga, whose movie stars By Ih C i before Jud wart i Montgomery to Prevent Suffering by are seen in Singap and whose | » By Harry Collins. JoUNLY Quirter Seaston Court heen ta atoll oo nflivenee ext to the remotest The Aristocracy that was the Horse | day e _Any in City. corners of tho ontth, Is neverthe. Show is somewhat dimmed this sen-| District Attorney Renninger rwpldly ene ede OF © Joneliest places in gon; but the Aristocracy that is the| produced witne who d bed the | Nie New York Committee nthe wor coording | Horse remains with: u: + [events following the abduction of ‘the Anthracite 1 Distribution an-| Dry Charles ths - | Soclety sat in the boxes: nay, were} (OURNn captite in Bee a | _ ‘ i ; tenitent of the Baptist City Ain glued in 4 polite boredom while equine) prarei ah ardor noticed to-day that deliveries made! sion society masterpieces moved to rhythmle mu- that Judge wart wie | within the jast forty-eight hours have Every year men die of foneti- | aie muy, SUE Or been suffic for all emergency pur- ness here,"* he told an audience in | And Socioty yas denned hives oF ond dageee | poses, and tha is ne longer any! the Madison Avenue | Baptist | minor mood of aloofnesmand wr: | “0 im tite on the lxensahl-aiy Checs ahSuld Ga aereanan Chureh last night No fore ign its somnolence in generous tars and | ilfetnent for Inappie Sentence | fielu © fu greater opportunity copious coate—in the «ume rigidity vine to-day. it Was Indicated py nyWwhe n the city because Of 8) for missionary workers than Man- that some people accomplish the ines. | Pennines lack of domestic coal hattan, both becuuse of ite’ vice hattan, by capable duty of attend © ™ | Deliveries ranging from 250 790) and its lonelines Heine B attending chureh, | Pantmanter len Rrookiym tons each, it was announced, have “There ta bouttdless opportunity reap ei tas hale a) Sa ek a Directors. A been made at the following East and na city where men die of loneli- | shions at the Horse Show have Comp 1 of 9 directory of Brook! ; ff indie! / not. And this despite the heroic ef-; lyn to aide t Office wuthorities inde \Hariem River points: Burling Slip.) peas amone crowds; where there toite ot livering malt lacking addreasum han bee | Pier 36, 14th Street, Delancey Streets) js starvation amid plenty, where bea tenAta MERE Usha [pe dado 7 Walter co tla ju ih Street and 215th Street. Alons) 4 thousand people live on an acre whlch snawaed @ noted) tasnion, mage) fioticn By Hestmaster Walter ¢ : the North River deli shave been! of ground they never se | afine In a novel experiment tributing bianks which are to be tanto At wich, eathe issdiand aimUh pit | The mannequins came, saw and re-}in and returned, during the next forte Streets, In Brooklyn there have been treated, preferring to be avtive spec«| night, The directory, the frst made | delivered Gowanus Canal, sth| XMAS MAIL OFF tators rather than passive actots, since 1913, is to be used for Post Off Street, 26th Street, Vandevere Park ON THE a The plan sound, but the dream. | PUrpoMes oNty, st Street, Newtown Creek, Bath makers selected conventional fashion REN : y Yo three themes which excited a ch inter. | Should be made a matter of publidt Beach, ‘East New York and three! ei ity Women Who Studied Our| ee ee nett FRLCT= | camille Hntited ieabeels eate Aenean ichmond Hill yards. | ? eave Wit set ee the League ot Nutiops, tngulshed ludies who are patrons of | ‘The committee! reported that thon-; Way to Walk Leave With What of the fashions worn by the| equine sports must themselves. wear \sunds of tons had been received and | Many Notables.» “haute mond t the Horse Show?! original fashion creations interpreting that thousands more are en route tO) me iia stan finer Adriatic 7 You see 1 have elreled around my Tt used to be a proud hoast of Amere New York Hoon today for Churbourk\<and Goutl subjeol, for one must be tactful, at! jean designers that from the insples ee of wholesale anthracite vith 20 ) seco: all costs. of outdoor sports we in this coun- At 5 with 250 first pin, 100 ‘ond t A developed a genuine style era. MM be held at thy ) third cabin passenkers wid The keynote at the Horse Show is| UY bad developed ag J . coal deal will be held third cabin passeng nd ‘ ‘note at the Horse Show. is] wis not in evidence at the SOeme Whitehall Clip this afternoon to t big bateh of Christmas mail, most = fine lines, long and slender, in com- | snow on a price control plan proposed by for which goes to Chia, Japan ag tae plete accord with the tendencies of} In conspicuous informality Js thelr own recently appointed Fair] Far Bast : i , sion during the last two years. | Indifference. | Not the automobllé. ts Price, Committee. restrictions] Among the departing passengers a i ul dress predominates, utilizing | the enemy of the horge, but dress that i fel Yor in-tila plan imilar } the eight young English wome (Photo by Curtin Mell) safe velvet and duvetyn fat is Indifferent WEMERL Boece o ave been in New Work studying stag 5 y "ahs an) 5 i to those which brought about a de- : Me eee hee ean MISS EULALIA GARRISON ries, while serge dresses falling in crease in the of bitumin-] join R. Drexel of Philadelphia; Mr Mrs, Gornollus M rrison of No. Atte et Nnes from the shouldor ar ous coal. Th main prop | sire A. J. Drexel Paul and children;| 14 East Tist Street yesterday an-| f i ositions to How Mr. and Mra. i. Low Harriman; @ B.| nounced the engagement of her For those whe did not wear fur sak ° ‘i ¥ th : da Pe alin gon, to| Coats the serviceable three-piece con Notable Hosis and Hostesses ites \feuchediy, the theatfidal ant: tenbenros fat Mise Ei Evan rll euiiey win aaulerureeweal cionte Téa as : io! . iG HOYT restricted to two wholesalers, For | moter: Antonio Cuyas, commercial del-| Lieut. Frederic W. Netlson, adn ot \ suble furs, was in order. for Gala Night at the Ritz CeIbLEw nue ANDREWS igen ahi entany | eete the Spanish Embassy, Wash-| Mrs. Louis on of No, 510 Park Red and black hats formed a back is something to get up for are Sere | = : a ill uke ar eukC anal He conaiteted a n: Count and Countess Caldorar,) Avenue, ground that aceldentally harmonized | when you know Rohe's Next Tuesday. RESIDENTS TO COME min ane c Paris; Mr, and Mra, A. KB) Labouchere:) Lieut, Neilson was graduated from | with the occaston » duy of the} Sausages arewwaiting for bares ‘ Brotik te |r es AernaD o Weinthal.! annapolis in te class of 1917, He Is a/ tight turban seems to have passed, for | you. Ask your butcher or The most brilliant t jeeven.| FIRST IN HIS COURT The & ae Wau ate Nee a Ghiek Salton oF ie Aton World, Lon, | brother af Raymond P, R, Netlson of| the hair dress calls for a certain brim | dealer for on the inimediate programme is the’ the wholesa e sh ne es 3 2 don Airs, Wa TL, Cocks, Ht, Loula New| Westbury, L. L Miss Garrison, who 18) that will frame the face, Rone nee Pe atte enetian ball to be given at the RUZ) ye Bord St soe Trial at on the prive at the place | Mr P ales ot Col Robe rt M. ‘Phompson | Ai jn all, the fashions at this nota- , 4 Carlton next Tuesday evening by the MISUSE Ne tig Us " ae -_ of this city, Is mom be ae 7| ble show are ¢ edly uninteresting | ») 7 4 2 > Parties Live in Charles en, } f the Whole- or League. has Spent much o} You can nw. newly organized national society for Because Parties Live in ee eee porate Mae ey 1 the | BIG CROWD MOURNS PRIEST.) (0, ite nbrowd, where sho received | and will not afford uny compelling | soe the New Vent ea “America's Tribute to Italy." Many Brookly [Bue GORI Pra dar snsoute tien, Best ths mo the greater part of Her education. The clues to the creator of styles itwone! Cee ae eh eee {vera tine : |fixing of a “10 per cent, maximum W Needed at Ser- wridding is to take place before the If the Horse Siow Is to resume its | vate homes just before the ball at the} SUPYeme Court Justice Ford halted | profit’ for the wholesaler did not r Father Christmas hollday . » place ax a truly national institution. it - a trial of a case before him to-day to}m an that the wholesaler would g attended the fu- of the hosts und hostesses at| Say Ne would refuse to delay cases of |tually take that much profit. The 10 Rev. Pather James | ares iY : Manhatta dents by hearing cases re as mentioned, he said sistant parish priest of dinners will be Mrs, I Hapland ioe dpa ea taeda al nt. ‘was mentioned, ‘he said, Chureh at Noy 444 Payne Whitney, Mrs, John Magee,|!n which all parties ¢ chiefly beea the Department of disth’ Str thie Horning: that = [Mrs John Sanford, Mra, Gifford] dents, ax the cluttering up of the justice wanted some figure to belrwstve pollen reese wees thet . Mrs, William K. Vanderbilt! court's calendar by outsiders’ sults | name that there would be a more'| handle the crowd jr. Conde Nast, M William Post, made i tedious for citizens of Man= | aetinite basis for the prosecution off High mass was sung by Frank Crowninshic Mrs, Duncan hattan to find vedress in thelr own ‘i ld the . dvana ather Thomas FP. Kan Ellsworth, Mrs, William Goadby court values good) will” too /4fe, chunchs, Aanlated Ma Connection With Any Other Establishment in the Werld Loew, Whitney Warren, Mrs, William) Justice | saab Spohn to pre ind added that id tiie Ney. David of] Astor Chanler, Miss Mary Hoyt Wi- the ease of Abraha ioe rey avera, wercentage uf jrofit | halt iy the £ Hi At tonde| the Bacon Coal Company for injuries |, . ean ; AaPoweliernn The borg, Mrs, A Core Ae ta el een eaused! Thy taken by wholesalers has been much [of Poughkeepsie, The be | Nast, Mrs. rrara, Mrs.| ridis was called for tral and he had | less than 10 per cent us born th 1878, for be | Frederick Lewisohn, Walllam F.) jearned that all parties to the action | Meanwhile the movement to pro- | Others prominent jn this affair are) he Tabs Us . | people in the congested districts was | ton, yard delivery | i | Mrs, Monroe Douglas Robinson, Mrs. | P!*t —— Jextended to-day when District Attor Ampeg oC anibencite shine opet YUIVTY-FOURTH STREET Valter aynard, Mrs. Newbold : ; ators Was called at Philadelphia this : ae Bagot Mh Aue] LANDLORD MUST GET COAL, | ney Lewis of Brooktsn announced she [ats Mas,talted at LMitauelon ia thi Chanier, Louis Wiley, Orestes Fer- ffer of the Wyoming Valley Coal| meant of Justice present, to reach an ira, Miss Wanden ‘Mathews, the| Court Gives Him Twe Day» to|Company to provide unthracite at 7H] agreement on fair prices att Princess Brancesco Rosp' fches- Obtatn Fuel. cents per 100 pounds, ‘The offer was | mines jutions were to be con- ter H. Aldrich, George bell, |sideved providing that — producers john Moffat, Henry Clapp Smith ll Thomas Farley, owner of an apart-}made by William J. Dalton, ©) would refuse to sell to brokers. or gonn 3 Cae) ry Clapp Sp Navan iolll No, 40 Johnson Street, | President of the company, who sald | wholesalers who cannot show. that “on the Costume Commi Brookly rared in Adama Street 1.500 tons weekly would be available) they have an established business Rollo Peters, J Reynolds, F Court to-day on complaint of Jacob 8.] at the price named fand a. re r clientele. Tr ; “ f Shirle: ha cler r his is to eliminate speculate! Cortissoz, “Baron de Mevep, | Riiox Yy Brenner, Wat onernciint Heat) staten [slandera have complained yin Sima cause nn uetihent Beet T h Gui cmke nad ninieth Daedeh W echal Mer t with Farley for ade-Jof the alleged shipments of unthra- {or prices, It was also proposed that bh aebeeanae Non ‘ cite abroad, saying that illness ie be- |no sales of domestic sizes be made to Among the p uted he " ‘ ; Wholesalers or brokers unless they cess Romano. Avez: but had nable to used at home by lack of coal, | s rene) Andre, Mrs, John 7 heat bu been inal greed not to resell to other brokers Coss Andrea Boncompagne, Mo: See AU Meg nian ts Win are | ReanS ave been made to the| iy the sume market—which would ton Bb . Mrs. William Astor Chan- |! ome ¢ 'THealth authorities on Staten Island. cause a multiplication of profits, ler, Mrs, dames Corrigan, Mrs, John | : ARE MOST EXTRAORDINARY