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The Midland Journal
Rising Sun, Cecil County, Maryland
What is this article about?
Government probes launched into alleged black market in steel following charges by Frank Higgins of New Orleans shipyard; related to contract cancellation for liberty ships. Senator Truman accuses Navy of negligence in tank-landing boat construction favoring Higgins' designs.
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In answer to charges that a "black market" in steel existed, where "immediate delivery was made from bulging warehouses scattered over the nation," two government investigations were immediately begun.
First probe was undertaken by Price Administrator Leon Henderson after charges made by Frank Higgins, associated with his father in a New Orleans shipbuilding yard, that his company had bought steel from such markets at higher premiums.
The second investigation was undertaken by Congressman Carl Peterson, chairman of the house sub-committee investigating the maritime commission's cancellation last month of the Higgins' company's contract to build 200 liberty ships because of an alleged steel shortage.
Meanwhile, Chairman Harry S. Truman of the senate committee investigating national defense charged the navy department's bureau of ships with "negligence or willful misconduct" in connection with the construction of tank-landing boats.
Senator Truman's charges contained in a letter to Navy Secretary Frank Knox referred to the navy's insistence on substituting its own models of tank-landing boats for ships of proved value built for this purpose by the Higgins company in New Orleans.
SENATOR HARRY S. TRUMAN
", . , negligence or willful misconduct."
What sub-type of article is it?
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Where did it happen?
Domestic News Details
Primary Location
New Orleans
Event Date
Last Month
Key Persons
Outcome
two government investigations begun into black market steel; senate committee charges navy with negligence or willful misconduct in tank-landing boats construction.
Event Details
In response to charges of a black market in steel with immediate deliveries from warehouses, Price Administrator Leon Henderson initiated a probe after Frank Higgins of a New Orleans shipbuilding yard claimed buying steel at premiums. Congressman Carl Peterson started a second investigation into the maritime commission's cancellation of Higgins' contract for 200 liberty ships due to alleged steel shortage. Senator Harry S. Truman accused the navy bureau of ships of negligence or willful misconduct for substituting its models over Higgins' proved tank-landing boats.