SENSATIONAL CHARGE

Waikato Times, Volume 117, Issue 19606, 19 June 1935, Page 8

SENSATIONAL CHARGE

GRAFT AND INEFFICIENCY. >, , —.—4 RESPONSIBILITY FOR DEATHS. . INVESTIGATION TO BE MADE. United Press Assn.—Elec. Tel. Copyright. WASHINGTON, June 17. “ In spite of the extensive investigations by Congress into Government regulations in connection with the shipping industry, favouritism, graft and inefficiency abound in this and in other branches of the Department of Commerce.” This sensational charge was made to President Roosevelt to-day by Mr Ewing Mitchell, who on Saturday was removed from his post of Assistant Secretary of Commerce in charge of ■the air and water transport sections. Mr Mitchell claimed that inspection of the services was weak owing to political favouritism, which probably was responsible, he said, f'or the heavy loss of life in the Morro Castle and Mohawk disasters and the recent aeroplane crash in which Senator Cutting and several others were killed. Loose practices in connection with financial aid by the Government to private steamship lines continued, said Mr Mitchell, and the United States Lines were allowed to take the Leviathan out of the service after having received several million dollars in subsidies and after having contracted to keep it in the service. Government officials made no comment on Mr Mitchell’s charges, except to say they had been referred to the Department of Justice for Investigation. BETRAYAL OF TRUST. THE TAXPAYERS ROBBED. ' Uniter! Press Assn.—Elec. Teh Copyright. Received June 19, 2.30 p.m.) WASHINGTON, June 18. Making a charge that the shipping .subsidy policies led to saturnalia by menfbent on robbing the taxpayer, the Senate Ocean Mail . Committee denounced the past operation of the merchant marine subsidies, and demanded drastic 'terms for any future Government aid. They alleged that some public officials had flagrantly betrayed their trusts. Government officials made a farce of the competitive provision of the Merchant Marine Act of 1928. In frankly advocating Government ownership and operation of the mer-

chant marine the 'Committee conceded 'that an alternative to the plan of Government ownership was private operation, 'Such operation to be subsidised where this was proved necessary. Alleged Illegal Profits. The report quoted Instances in which it was alleged companies violated the spirit of their contracts in order 'to divert profits into their own tills instead of devoting them to the building up of the merchant marine.

The committee declared that R. Stanley Dollar received from the Dollar Steamship Line and the Admiral Oriental Line 698,750 dollars, as commission incidental to the purchase of •ships from the Government at low •prices. The Roosevelt Steamship Company, which took its name from Mr Kerniit Roosevelt in 1920, with a then outstanding capital of 22,000 dollars, made profits under a lump sum agreement, from 1931 to 1933 inclusive, amounting to 371,987 dollars.