Show c CON H USED T TO H HOLD lD UP UPi r rj i j i f i SALE Al j Viti Witness ess Tells TelIs of Interference t I U bV- bV Representative From l' l r Michi Michigan an r U L NEW YORK Nov 13 The The name of Representative James A A. A Gallivan of Michigan an was brought Into lulo testimony offer here today in the Val Walsh h committee com com- milte Inquiry the affairs of the States shipping board Robert E Eo Kline J pe pedal laJ representative tive Qt of pC the board a supply and sales department was testifying as to methods methods methods meth meth- in disposal of surplus mate mate- rial In the course Q of his testimony he described an effort on the part of oC his depar department ment to procure what he said was an ad advantageous contract for dis disposal disposal dis- dis ot scrap material m I TANGLED NEG NEGOTIATIONS A bid for its sal it a. a 1 rate of at 50 cents I IQ e. ton tout over over the market price was accepted accepted ac ac- I ac-I r rejected accepted again and once more held up because an official In W Washington discovered he le had acted without authority he ho said I In the interim another form Corm of ot bid bad Arad been offered The second bidder he le had been discriminated I against G and according to fo the witness air Mr Gallivan telegraphed the board ard complaining that this bidder one of his I Constituents had not been tre treated fed This first telegram the wit- wit mess 6 added was wag soon Oon followed by an- an lather which he termed sharp demanding demand demand- In ing a ah investigation and t threatening to o oke take hake ke the matter atter to the floor of con con- con con- TH c ST UNCLE SAM MONEY The Tho insistence of air Mr G Gallivan Gallivan- the witness said no doubt caused the home Boffice of the board to g give ge e the contro- contro v rs over the scrap contracts 1 j consideration At any rate he heid raid acid id ho he forwarded to the board a com 1 file of the tho case Th The delay Y in iLde- iLde de- de termini ng the successful bidder however however how how- ever ever cost the tune government money he declared for at that last tiree-last last June JuO and July the July the market for scrap material material mate mate- I rial was much much higher than it now is Scrap material sold by the board was disclosed ed by the witness witness' ss' ss testimony mony include to include t everything from unused unused unused un un- un- un used parts bolts asbestos packing for steam Pipe pipes to Discarded uniforms of the guards used during the war to protect shipyards and plants plant lie He also described details of how this material w was was s qs assembled em d invoiced ape and e eventually sold REVERTS TO OPERATIONS From shipyard materials and contests contests contests con con- tests over contracts for scrap the h hearing in its closing hours today drifted back to operations Captain James A A. MacGregor of Baltimore Baltimore Bal- Bal now flaw general manager for the I South Atlantic Maritime corporation but formerly district agent for the shipping board Jward at t Savannah and Wilmington Wilmington Wil VII was called He related in instances instanCes instances in- in stances of delays delay's to shipping board vessels alleged alls interlocking operating organizations d delays in repairs to 0 ships and congested harbors which he said cost the shipping hipping board money He Ire admitted however r that incidents similar to those he described cri ed had oc occurred occurred occurred oc- oc with private companies but notto notto not notto to such an extent as ps they did il with the government q operations A MUCH TRAVELED CARGO C Captain MacGregor told of a shipment ship ment of resin from Savannah to to toHa Havana lIa- lIa vana w which could not be unloaded at atthe atthe atthe the latter port because of or congestion ton Its consignee raised a vigorous complaint complaint complaint com com- I plaint and he was paid for the resin by bythe bythe bythe the steamship hip company which carried it with a check on shipping snipping board I funds The resin went with the ship CromI from Crom Havana to t Buenos au Aires Aire thence back I to New York thence to Baltimore and back to Savannah where it was sold soldat at a Joss loss The shipping board was re reimbursed reimbursed reimbursed re- re but the point of the witness was that its funds were used without proper proper authority Methods of shipping board operators holding cargo for their own vessels when board vessels operated by y another another another an an- other line lipe were available was criticised criticised criticised by bythe the witness s. s He alleged that this system caused a a. of cotton at atS S Savannah vannah last Jast fall |