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Show PIE7 DECLARES H GILLEN REPORT FULL OF ERRORS H "0f Course There Was Petty Graft: There Always Is," He 1 Tells Committee SENSATIONAL CHARGES ARE BASELESS, HE AVERS Whole Structure Besmeared by General Accusations, Wit-ness Wit-ness Declares WASHINGTON, 20. Claims HiH (hat the report of Martin J. Gillen to mNLbH the committee war wrong in all vital ILHil questions, were made today in a state- LNN ment submitted to the select commit- IHhibbbbbBB tee on United States shipping board INffij operations by Charles Plez. former di- UNaa H l rector general. United States shipping Hye H Board Emergency Fleet corporation. KjR 1 Mr. Plez claims that statements (n HI Mr. GillSn's report do not square with Hf9 bbbbbbbI the facts in a single vital case In which fmm LbbbbbbI b. Indulged criticism concerning the BH bbbbbbbI division of construction; (hat Mr. Gil- kisb Lbbbbbh len's statement that there was Inter- llHI fcrence between management and HNLLN trustees in placing of contracts Id hHflH wholly untrue that Mr. Gillen Is gull- lif Kl ty of gross mis-statement of facts re- ' Hbsibbbbbbb! fording the fleet corporation's $250.- uhSibbbbbbb! uOO.OOO mortgages and securities and ' iiHffi bbbbbbbI thai Mr i ".Ulen's statement of lack of 'Hbbbbbbbb! an accounting svstem Is wholly wrong- llBlHLLN REPORT HELD W R( N. ir T-ii ..! . !..-.. IBSSBJBBBBBBB1 ..ii . r i'v. k . ' 1 ii.' luoiiiT '.iduin 'HUBSSSSSSSI th.it Mr. Glllen's report regarding tho ImBBBBBBBl fleet corporation's check against au- ! nRRH Lhorixations and appropriations Is ab- nLLN solutely wrong; that his statement on' tDliBBBBBBBl control and Imprest fund has no foun- UrbLH da tlon in fact and that the deetTUC- Iibbbibbbbbbbb! effect of Mr. Gallon's testimony IBHH has impaired public interest hi tho IflliBBBBBBl establishment of au American mcrch- nBSSnsBBBBBBl t ant marine, and practically . destroyed Bibbbbbbbbbbi i the market for shipping securities. kLbbLbbbbbI Mr. Piez's statement says that ships rbbbbIibbbbbbI were built to meet the necessities of IibBibbbbbb war, not to establish a merchant ma- Ibbbbi bbbbbbbI tine; that the emergency fleet corpor- Ii!iflsBBBBBBl atlon delivered 479 ships before the IsbbbIbbbbbbbI armistice, that the task was to bull I RBbbbbbbI 'ships faster than submarines could ' bbbbIbbbbbbbI sink them, and that the building of IiHBI "hips was conducted in a systematic HBibbbbbbI 'and business-like manner. iHNH Bl il l WOODEN snips. Mr Plez contends they had to bulM hbbJNbbbbbbI wooden ships knowing they would be ubdWibbbbbI scrapped when conditions returned to yHfll I normal ; that because of the demand of i ISLsbbbI I the war department for more ship- SBssbbbbbbbI tlhat E N. Hurley, Balnbridgc Colbv ilMal and himself requested Charles M IHBH 'Schwab to join the organization and lQBbbbbbbb that General George W. Goethals in- PbIbbbbbbb augurated the accounting system. IbBbbbbbbb Mr Piss says that he suggested In tHnBSBBBsfl December, 1017, that no further con- iKsBBiiifl tracts for wooden ships be let, but the HflBBBifl board of trustees was obliged to keep IbsssbbbbbbI jon building when pressure for any- jj fijH thing that would float became so in- SBibbbbbbI I tense in the early spring of 1918. Tit I mBH claim says that there was not a voice I LbbbbbbbI 'in or out of congress that was raise) i bbbbLbbbbbI in protest against a continuation of H 1 1 ho wooden ship building program. mIIbbbbbI I Wooden ships represent a legitimate NILbbbbb war expense, according o the state- i NbbbibbbbbI 'ment. which adds: 9B SHOl LD BE JUNKED "They should be junked and the cu" BBsbbbbbb written' off. This nation cannot est- I IBN sect to realize a salvage of 100 pet IhibbbbbbI cent on v.ar construction. We must I LLbbbbI recognize that ships became shop HbLbbbbbI jworn when held too long-' I IibsbbbbbbI j The statement says there was some IbbbbbbbbbI payroll padding, some potty dlshones- ' BIsbbbbbbI but no more than there would be I Lbbbbbbbbbbb In yards under private control. I H "This Inference on the pa: t of tin I public Is 1 large measure the. result IbbLbbbbI of the wild statements made by Mi HibbbbbbI Gillen concerning the methods of the VBsbbbbbh .fleet corporation." Mr. Plez says, nr HILbbbb to the general statements of graft I fllH ai d corruption contained In the Fish- INbIbbbbbbM . r-Rl( -hurdson report. The public 1 MBBBBH 'does not differentiate the division of 1 Bsbbbbbb! construction from that of operations HH and conclude that because there WOS Hbbbbbbb! pottj imong minor ships' ..ft": victualling and repairing ships in operation that tho entire H structure of the corporation was hon- HI bbbbbbI ' .combed by a like condition. HI mM GR 1FT PREV MLS. "Graft in ship operations has from bbhIibbbbbI lime immemorial been considered one j IH of the perquisites of petty officers. HBI and is a difficult disease to eradicate. nHBBBBBn It has no place in the operations of nBDBBBBBBBl an American fleet, and should ' be I HbbbbbbbbbI treated with an iron hand. i bbbbbbbbbb! "But It is to be regretted that the NJibbbbbbbb! I Fisher-Richardson charges are couch- 1 led in such general terms that the: NsbbbbbbbbI inve besmeared the whole structure ll Of the shipping board and fleet cor- I IibbbbbbbbbI with the slime of suspicion. i HHiibbbbb! Manj of tho charges should have been IflBBBBBBBn I made in the police courts rather than MhibbbbbbbbI In a report of such importance." . JlflMH |