Evening star. [volume], February 20, 1938, Page A-3, Image 3

About Evening star. [volume] (Washington, D.C.) 1854-1972

Image provided by: Library of Congress, Washington, DC

                
CHECK SHIP BIDS
Cost Statisticians Seek to
Determine Cause of “Ex
cessive” Asking Prices.
By JOHN C. HENRY.
Expert cost statisticians of the
United States Maritime Commission
have called on at least one of the large
private shipbuilding firms of the coun
try for r.ost minute itemization of
ship construction costs tn an effort to
segregate the factors responsible for
the “excessive" bids submitted the
Government early this month, it was
leirned j'esterday.
Although all bids were submitted in
some detail and with itemized work
sheets attached, commission officials
felt that the information made avail
able did not constitute an adequate
justification of the prices given. In
his letter to President Roosevelt de
scribing the bids as excessive, former
Commission Chairman Joseph P. Ken
nedy remarked that the circumstance
was “extremely difficult to explain.”
Neither costs of labor nor of ma
terials could justify the price level, he
said.
Accordingly, not content with the
routine analj’sis of bids by their cost
technicians here, the commission
dispatched two experts to the home
office of one of the big bidders for
more searching examination of esti
mates employed in drafting the bids.
This examination was under way
throughout the last week.
riiuia juHuy niu>.
Meanwhile, with a figurative shrug
of their shoulders, the large shipbuild
ing companies privately are citing
some half-dozen circumstances in
justification of their high bids. Rough
ly. they follow:
1. The C-2 type of ships for which
the bids at issue were asked contain
various features for which little prece
dent exists in estimating costs.
2. Application of the Walsh-Healey
act calling for high wage and hour
standards in connection with produc
tion of materials to be used in filling
Government contracts.
* 3. Taxes, particularly payroll and
undistributed corporate income levies.
The latter, it is claimed, prevented the
firms from retaining surpluses ade
quate to balance possible losses in ful
filling the contracts or to finance any
expanded facilities needed.
4. Unstable labor conditions, which
make it difficult to estimate labor costs
over the two or three years needed to
complete the jobs under discussion.
5. Statutory limitation of profit
percentage on Government jobs, which
forecloses any prospect of heavy mar
gin on one bid to counteract unfor
6een loss on another.
fl. Such factors of uncertainty as
Unpredictable demands which might
be made by commission inspectors
during the construction work. In this
regard, it was pointed out that the
private yards doing Navy work know
the general requirements of that de
partment but that different standards
might be established arbitrarily by
the commission.
Contract Hazards Cited.
Peeling that these and other cir
cumstances have increased the hazards
faced by firms contracting to do the
work, most of the companies sub
mitted what they describe as “safe”
bids in which an effort was made to
cover every possible unfavorable de
velopment during fulfillment of the
contracts.
Although many of these factors will
apply also to naval building, spokes
men for the private builders are pre
dicting that the degree of "excessive
• ness" will not be as great and may
not throw preliminary estimates for
this type of construction as far off as
is feared.
vyuii cur tuimmwiun awaiting me
further findings of its cost experts be
fore deciding whether to discard the
bids for the 12 vessels desired, or
whether to chance letting the work to
the small yards which submitted lower
estimates, the problem of maritime
labor relations continued to vex the
legislators on Capitol Hill.
Pending before the Senate Commit
•tees on Commerce and Labor are
amendments to the Merchant Marine
Act by which the railway labor media
tion law would be extended to the
shipping industry. Supported by the
Maritime Commission and with indi
cations that many members of both
committees also are in approval, the
suggestion is under determined fire
from the maritime unions, the Labor
Department, the National Mediation
Board and the National Labor Rela
tions Board.
> Further committee consideration of
this issue will continue this week.
London
y
(Continued From First Page.)
Morrison declared, “then Mr. Eden,
if he has any self-respect left, will
resign and cease to act as a smoke
screen for those of his colleagues who
are determined to subordinate British
security and peace of the world to
Fascist foreign policy.
“If Herr Hitler and Signor Musso
> !ini are capable of cheating each other
as they have done during recent weeks,
then they are certainly capable of
cheating our own not very brilliant
cabinet."
Mr. Eden shared Mr. Morrison's
suspicions of Mussolini's motives, some
observers believed. The foreign sec
retary attended only one of Mr. Cham
berlain's two conferences yesterday
with Count Dino Grandi, the Italian
Ambassador.
1
British Lukewarm. Paris Learns.
PARIS. Feb. 19 </*>).—'The foreign
office today received what -was called
the British government’s “lukewarm”
reaction to the French invitation to
join in defending Austrian independ
ence.
It was brought here by Charles Cor
bin, French Ambassador to London,
who was closeted throughout the day
with Foreign Minister Yvon Delbos.
tlelbos also received Leon Noel, French
Ambassador to Warsaw.
The French government, it was
learned, proposed to Britain that the
two powers make a public declaration
warning Germany they would oppose
“any act of force” which would tend
to modify the territorial status quo in
Central Europe.
Corbin said Anthony Eden, British
foreign secretary, acepted this “in
principle” but, since the question of
Anglo-Italian relations must be set
tled first by the cabinet, a definite
answer must be postponed.
* The Ambassador reported Prime
Minister Neville Chamberlain said he
felt he could increase British pressure
on Berlin only in so far as progress
waa made toward better relations with
Italy.
I 4
Lead Battle for District Relief Fund Boost
CANON ANSON PHELPS
STOKES.
MRS. EUGENE MEYER.
GEORGE J. CLEARY.
CLARENCE PHELPS DODGE.
__—Star Staff Photos.
COMMITTEE 10 AID
OLDER WORKERS
Conference to Be Held Here
on Ways to Discourage
Discrimination.
By the Associated Press.
Secretary of Labor Perkins yester
day appointed a committee represent
ing industry, labor and the public to
confer here Wednesday and Thursday
on ways to discourage discrimination
against older workers.
She named Dr. Harry Woodburn
Chase, chancellor of New York Uni
versity, chairman of the committee,
and these other members:
Labor—Miss Elizabeth Christman,
secretary-treasurer National Wom
en's Trade Union League of America;
George M. Harrison, president
Brotherhood of Railway and Steam
ship Clerks: Sidney Hillman, chair
man Textile Workers' Organizing
Committee; Charles P. Howard, presi
dent International Typographical
Union; Philip Murray, chairman Steel
Workers' Organizing Committee; D.
W. Tracy, international president In
ternational Brotherhood of Electrical
Workers: Robert J. Watt, Social'Se
curity representative American Fed
eration of Labor.
Industry—John D. Biggers, presi
dent Libby-Owens-Ford Glass Co.;
J. M. Barker, vice president Sears,
Roebuck & Co.: Chester I. Barnard,
president New Jersey Bell Telephone
Co : J. A. Brown, president Socony
Vacuum Oil Co.: William S. Knutsen,
president General Motors Corp.: A.
W. Robertson, chairman Westing
house Electric <fc Manufacturing Co.;
Walter C. Teagle. chairman of the
Board Standard Oil Co. of Nlw
Jersey.
The public—Miss Mary W. Dewson,
member Social Security Board;
■ Daniel J. Doherty, national com
mander American Legion; Ernest G.
Draper, Assistant Secretary Depart
ment of Commerce; Miss Ruth Hill,
deputy commissioner Division of Old
Age Assistance, City of New York
Department of Public Welware: Dr.
Dexter M. Keezer. president Reed
College, Portland, Oreg.: Dr. H. A.
Millis, chairman department of eco
nomics, University of Chicago.
Vienna
(Continued From First Page.)
awaiting Adolf Hitler’s speech to the
Reichstag tomorrow.
Others Not So Reassuring.
Other reports were not as reassur
ing as the govemnment members'
statements. Nineteen representatives
of engineers’ organizations called on
an official of the Federation of Social
Workers with demands for dismissal
of Nazi engineers and a declaration
Austria should abandon the Rome
Berlin axis in favor of a broader for
eign policy.
Members of the Leather Workers’
Guild sent a resolution to Schuschnigg
saying they wished to join the Aus
trian semi-military Sturmkorps "to
fight, the interloper.”
"If we must surrender, then we
want to leave only mins for the
enemy,” they said.
A Fatherland Front secretary re
Relief
_(Continued From First Page.)
be willing to accept increases in taxes,
if necessary, to assure a more adequate
care for the destitute families.
$3,147,000 Needed.
Sidney Katz, secretary of the In
dustrial Council of Maryland and the
District, insisted that the House had
refused to increase the *900.000 item
recommended by the Budget Bureau
because too many of its members were
“ignorant” of the real relief needs.
District welfare officials, he explained,
had i calculated the need next year
Would be *3.247,000. to provide a new
item of *1,225.000 for care of employ
able persons who cannot find work,
and a total of *2,022.000 for relief of
unemployable.'. Instead of granting
this increase, he continued, the Budget
Bureau disallowed again any fund for
employables and cut this year’s fund
for unemployables by *436,000. What
recommendations were made by the
District Commissioners, he said, have
not been anounced.
The Central Labor Union, an affiliate
of the American Federation of Labor,
was represented at the meeting by D.
C. Dow.
Canon Stokes declared: "It is per
fectly preposterous to assume that an
appropriation of but *900.000 will prove
sufficient at a time when the need is
greater than it was last year.
24.000 Out of Work.
"Records of the Public Assistance
Division of the District show that
more than 1,000 applicants for relief
were denied aid last month because of
the insufficiency of funds. The Family
Service Association, one of the largest
private relief associations here, last
month denied 399 applicants who were
deemed worthy, because of lack of
funds. This was the largest number
denied since the depression. There are
some 24,000 applicants for Jobs regia
Man With ‘Right Type BlooiV
Faces Jail After Transfusion
By the Associated Press.
NEW YORK. Feb. 19 —They were
saying tonight that young Bob Fer
guson had the right kind of blood.
His sister, smiling wanly on her hos
pital cot, knew it right along. Tire
Government of the United States is
taking his word for it.
The right kind of blood!
Bob Ferguson is 22. His father Is
a bartender. His sick sister's hus
band is a cook. Bob himself is a
hotel porter.
No ancestral elegance, you see. No
blue blood. Just ordinary blood of
the kind his sick sister, the 18-year
old Mrs. Joseph .Dumagan. needs to
pump through veins fast tiring from
their fight against toxic poisoning.
Bob was scrubbing the floors of a
Napanee i Ontario i hotel when the
wire came three weeks ago: 'Sister
ill, needs transfusion. Can't afford
to pay professional donors. Remem
ber you gave transfusion five years
ago. Yours is right kind. Can you
help?”
Could Bob Ferguson help his sis
ter? He had no money to pay an $8
head tax to get into the United States
or buy transportation from Napan<*e
to New York. You've got to have
HIGH SAFETY RECORD
| OF U. S. SHIPS CITED
600,000,000 Carried in 3 Years
With Loss of Only One
Passenger.
During the last three years United
States vessels have carried 600.000 000
passengers with the loss of the life
of only one passenger, President
Roosevelt said In a letter to Secre
tary of Commerce Roper commemo
i rating the 100th anniversary of the
founding of the Steamboat Inspection
Service. Commerce Department.
"Credit for this achievement is
shared by our merchant marine per
sonnel and by the inspection service,
for which the Bureau of Marine In
spection and Navigation is responsi
: ble,” the President said. "To the
, Department of Commerce, to the Bu
! reau of Marine Inspection and Navi
I gation. and its personnel all over the
| country, I st>nd greetings and con
j gratulations.”
Personnel of the bureau celebrated
I the anniversary with a dinner dance
vealed Schuschnigg told, a group of
front members "I had only one choice"
at the Berchtesgaden meeting with
Hitler a week ago.
He said a Nazi uprising was put
down in Austria in 1934 when Italian
troops massed at Austria’s border, "but
this time that counterbalancing force
was lacking."
Front Opening is Delayed.
Opening of the Fatherland Front to
Nazis, the government's last an
nounced step in fulfilling pledges to
Hitler, w'ill take a few days further
to carry out, a Front official said.
Party lists will be open only eight days
as soon as the machinery is perfected,
thus admitting Nazis to legal political
representation.
Applicants must take an oath of
loyalty to the constitution, a provision
expected to have a deterrent efTect on
some radicals.
Appointment of five cabinet mem
bers favorable to Nazi Germany, free
dom for all political prisoners and a
%
tered at the District Employment Cen
ter who are out of work—and this fig
ure probably represents 60,000 or
more persons who are in need."
Mrs. Agnes E. Meyer asked: “Why
are we recounting facts and figures
that all here know? We ought to
have a meeting of the public that
would fill Constitution Hall. The
strongest possible committee, the fore
mast citizens in town, should go to
the White House if necessary to show
these obviously condemning figures."
Not Beaten.
Walter Ufford, veteran private so
cial worker, protested that not only
had the House refused to increase
the relief appropriation, but that it
had reduced the proposed $705,000
item for old-age assistance, approved
by the Budget Bureau, to $486,000.
In reply to a suggestion that a large
mass meeting be called, Mr. Ufford
retorted: “We did all that a year
ago; we had a mass meeting with
more than 1,200 attending, and we
sent memorials to the White House
and none of this had one scintilla of
effect—yet we are faced here with a
problem of mass starvation.”
Chairman Cleary said: "We do not
admit defeat because the House has
allowed only $900,000 for general re
lief. We have hopes that the Senate
will approve the proposed increased
sum. If that happens we will be pre
pared to fight during the long, hard
pull between the House and Senate
conferees.”
Letter to Thomas.
William A. Roberts, president of
the Monday Evening Club, told Sena
money at times like that—money or
the right kind of blood.
He had that — blood that dared
break the law for his sister. He
slipped across the border. They
caught him. They took him before i
Federal Judge Frank Cooper in Albany,
following his arrest at Rouses Point,
near the border.
‘Tve just got to get to New York,"
said Bob Ferguson. "It's my kid sis
ter She's sick. She needs a trans
fusion. "I've got to get there."
"I'll let you go." said Judge Cooper,
"until next Wednesday. That's plenty
of time. There’s a Government man
driving to New York today. He'll j
! have room for you. Give your sister i
j the transfusion. I hope it makes her
well.
"Then you must come back. You 1
have broken the law. You face a sen- i
tence to jail. I release you on your '
honor until Wednesday.”
So Bob Ferguson, at his father's
home today, waited the call to the
hospital. Afterwards-—?
"Sure I'm going bark. That judge
gave me a break, didn't he? You
' don't think I'd run out on him, do
i you?”
Nobody seemed to think he would
run out. . He looked like a lad with
i the right kind of blood.
at the Mayflower Hotel Friday night.
Among the guests of honor were As
sistant Secretary of Commerce J.
Monroe Johnson and Mrs. Johnson,
Senator Copeland, Democrat, of New
i York, chairman of the Senate Com
merce Committee, and Mrs. Copeland;
Representative and Mrs. Schuyler O.
Bland and Mr. and Mrs. Malcolm
Kerlin.
•-•-——
PLAY OPENS MONDAY
A three-act comedy, ‘ One Delirious
Night," will be presented by the Sa
cred Heart Study Club in the school
auditorium. Sixteenth street and Park 1
road N.W., tomorrow and Tuesday at
8:15 p m. There will be dancing after
each performance.
The presentation will be under di- 1
rection of the Rev. Ronald J. Fannon,
assisted by A. J. Bier. Members of
the cast are Margaret Mihm, ‘Billy"
Kellinger. Man- Agnes Bier. Marian
Wolberg, Nancy Lang. "Bunny" Kee
lan. Joseph J. Clark, jr.; Francis
Naughten. Harold Quinn. William
Wilson. James Zimmer. Robert Cot
ton and John McClellan.
legal status for Nazis politically were
provisions of the agreement with
Hitler.
Monarchists, Angered, Meet.
Monarchist leaders, enraged by de
velopments of the past week, met to
day to decide whether Archduke Otto, I
heir to the non-existent throne of
Austria, should return to the country
to lead a campaign for restoration
of the throne to upset present Nazi
advances.
It- was believed a final decision was
postponed until after Schuschnigg's
address February 24.
Otto's representative, Baron Dr.
Friedrich R. von Wiesner, said he had
been warned semi-officially not to at
tempt such a move at present be
cause it might embarrass Germany.
Otto, on the other hand, said six
months ago that "should Germany
attempt to establish a Nazi regime
in Austria I shall be in Vienna one
step ahead of Hitler.”
tor Thomas in his letter that, while
the ciub does not have all the data
available to governmental bodies, "we
have, however, sufficient information
to be firmly convinced of the serious
state of thousands of residents the
District of Columbia who are unem
ployed and either unemployable or
unable to secure employment.”
"The general statement that an ad
ditional million dollars was needed to
afford modest protection to these peo
ple has not been convincing to con
gressional committees,” the letter con
tinued, "and in the absence of a com
prehensive inquiry into the relief
needs it is apparent that misinforma
tion and lack of information must
govern appropriations and the expen
diture of funds.”
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SITNTCABD ESTATE
Arlington, Vo. Fh. Jackson 1978
o
Advisory Council Recom
mends Seamen and Bank
Workers for Benefits.
Inclusion of seamen and employes
of national banks and State banks
that are members of the Federal Re
serve System among employes covered
by the social security old-age benefit
system was recommended to Congress
yesterday by the Advisory Council on
Social Security, named a year ago by
President Roosevelt to suggest re
visions of the o'.d-age provisions.
After a two-day session, the council
decided to withdraw recommendations
for substantial changes pending
further study.
Other recommendations of the .
council were:
An amendment which would permit ]
an individual to qualify for monthly ;
benefits and to secure monthly benefits i
or death payment because of employ- j
ment after the age of 65.
An amendment mat would exclude
from the definition of wages certain
types of payments by an employer to
or on behalf of an employe under
plans provid'ng for retirement or dis
ability benefits.
An amendment to clarify the ex
emption from the act of employes of
certain State instrumentalities.
An amendment defining the cover
of services under the act depending on
whet Her the excepted or included
services predominated.
The council decided to continue its
study of such larger questions as
starting the payment of monthly old
age benefits before January 1, 1942,
increasing the amount of the benefits
for those retiring in the near future,
extending benefits to persons incapaci
tated before the age of 65. extending
benefits to survivors of persons en
titled to benefits, reducing tax collec
tions on pay rolls, extending the bene
fits to groups now excluded and dis
position of the old age reserves.
Employers, employes and the public
are represented in the council.
LAND TO CONTINUE
Announces There Will Be No
Changes in Taking Mari
time Post.
By the Associated Press.
Rear Admiral Emory S. (Jerry)
Land, retired chief of the Navy’* Bu
reau of Construction and Repair,
assumed the chairmanship of the
Maritime Commission, yesterday and
announced there would he no change
of policy.
Describing his post as the ‘same’
tough Job it's always been.” Admiral
land told the Associated Press he in
tended to “give the best of my ability
to attempting to carry out the policies”
laid down by his predecessor, Joseph P.
Kennedy. Mr. Kennedy has been ap
pointed Ambassador to Great Britain.
’’There'* nothing of the new broom
about me.” Admiral Land commented.
Asked if he agreed with all of Mr.
Kennedy’s policies, including his view*
on the maritime labor situation, he
said he did.
This indicated continuation of the
commission's fight for legislation to
require mediation of marine labor dis
putes. Mr. Kennedy, who called labor
conditions “chaotic,” clashed with
Secretary of Labor Perkins on the
mediation question. She contends the
industry is not “ripe” for mediation.
Admiral Land. 59-vear-old Coloradq
born sailor and aviator, has been a
member of the commission since last !
April.
Max o Ken uruitt, 34, a native or
Missouri and now general counsel of
the commission, will fill out Mr. Ken
nedy's unexpired term on the com
mission. ' White House aides said Mr.
Truitt's appointment was temporary
pending selection of a West Coast
representative.
Mr. Truitt, a son-in-law of Senator
Barkley. Democrat, of Kentucky, Sen
ate majority leader, was solicitor of
the Reconstruction Finance Corp. be
fore joining the commission.
-9
Taxes
<Continued From First Page.)
which do business in the District. A
committee representing the Baltimore
Chamber of Commerce is to be gkven
a special hearing at 10 a m. to register
the complaint.
Despite the ever-rising tide of_oppo
sition to continuation of the business
privilege tax. Chairman Nichols be
lieves it will remain the backbone of
the tax increase program for the com
ing fiscal year. He forecast the pro
vision for imposition of an income tax
on the salaries of all persons who work
in Washington would be eliminated J
from the measure and that the pro- '
posed SI.75 tax rate on real estate for
the 1939 fiscal year would be reduced
to $1.60.
Trade Body to Be Heard.
Chairman Nichols left Washington I
last night for Oklahoma to make a
George Washington birthday anniver
sary speech In his congressional dis
trict and will not return until the lat
ter part of the week. During his ab
sence hearings on the bill will be con
ducted by Representative Wood. Demo
crat, of Missouri, ranking majority
member of the subcommittee.
The entire hearing tomorrow Is
expected to be devoted to consideration
of the protests of Baltimore business
men. A hearing will not be held Tues
day because of the holiday, but
Wednesday the Washington Board of
Trade will be given an opportunity to
outline its views on the new tax pro
gram.
335 TO GET DIPLOMAS
AT G. W. U. TUESDAY
Phi Beta Kappa Chapter to Get
Charter at That Time—Mar
vin to Preside.
Diplomas will be presented to 335
students of the Oe<jrge Washington
University at the winter convocation
in Constitution Hall Tuesday at 8 p.m.
Dr. Cloyd H. Marvin, president of
the university, will preside and present
the certificates.
%
The convocation also will be the
occasion for the formal presentation
of the charter to the Phi Beta Kappa
Chapter at the university, the first in
Washington.
Special Sunday Dinner, $1.50
Shore Dinner_$1.25 i
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Gulbransen Pianos
are noted for durability—rich tonal qualities
—responsiveness—artistic design — and low
price when all qualities are considered. They
appeal to those who want a Musical Instrument
and not merely a piece of furniture! We
recommend them highly.
Gulbransen “Harms wood” Grand Piano, $425
Rich, Resonant Tone • Super Scale • 4 Ft. 6 In. Long
ACCOMMODATING TEAMS AVAILABLE
DROOP’S • 1300 G