1941-09-05 — Page 33

COMMER

• KARRIER

Trucks

Gilma

Library, SapzeING

ITALIAN CONVOY CAUGHT

See

LATE

Page 2 NIGHT FINAL

CHINA MAIL

INSIST ON

Daisy Brand

FIRST NEWSPAPER IN THE FAR EAST. ESTABLISHED 1845. Australia's Choicest

No. 33,044

FRIDAY, SEPTEMBER 5, 1941

Price: 10. Cts.

BUTTER

TUNNELS AT "COST PLUS"

Mr. Carman Recalled

Recalled At Inquiry Questioning US. DESTROYER ODESSA

Close

By Chairman

MR. W. F. CARMAN, ACTING MANAGING DIRECTOR OF MARS- MAN HONG KONG, CHINA, LIMITED, WAS UNDER QUESTIONING BY MR. JUSTICE CRESSALL, CHAIR MAN OF THE A.R.P. COMMISSION OF INQUIRY, DURING THE WHOLE OF THIS MORNING'S PUBLIC SESSION.

The examination was directed almost en- tirely to the application of the "cost plus ten per cent." arrangement between Marsman's and the P.W.D.

Japanese

Mr. Carman said that about 200,000 Restraint

people could be accommodated in the tunnels completed so far.

Mr. Justice Cressall, at one stage, put it to Mr. Carman that the situation was that Marsman's were using Government equipment, without which they could not perform the work, and charging Govern- ment ten per cent, for it.

The Hon. Mr. Edgar Davidson appeared to re- present Mr. Carman and Marsman's, and Mr. G. G. N. Tinson was present on behalf of Wing-Comman- der Steele-Perkins.

(SPECIAL TO "CHINA MAIL")

Amplifying the earlier announcement of the ar- rival of the first American tanker at Vladivostok, oil circles in Los Angeles yes- terday said the vessel was the "L. P. St. Clair."

The tanker, they add, sailed from Los Angeles on August 15 with 95,000 barrels of aviation more tankers are spirit. Two due in Vladivostok any time.

In Washington, the Japanese restraint in connection with the tankers is regarded as evidence of the Tokyo Government's desire to avoid difficulties with the United States.

International

Charges made on the "cost- Chairman (to Mr. Carman); plus" basis in accounts to Gov- You reduced the salary to $150 a ernment were

the subject of month on instructions of Govern questions when Mr. Carman was ment through Mr. Campbell? called as first witness of the day. Yes.

The Chairman:-At the last sit- He was eventually paid $3,500 ting you said you would like to by the firm? Yes. reserve your answer to certain

The firm charged 10 per cent. News Service. questions. One was about $200 on that? — Ten per cent was not paid to Messrs. Hastings for legal expenses about Mr. Ollsen, and whether 10 per cent, was charged. Have you verified that?—Ten per cent. was charged.

I understand this gentleman was paid $200 a month,--Right.

He worked 12 hours a day and the injury took place on October 16, 1940. Yes.

He was sent to hospital and re- mained there till July, 1941-No, June, 1941.

charged.

Charge On Salary Paris

Was 10 per cent, charged on his salary when in hospital? - Yes. I understand Messrs. Deacon's acted for him with your firm and}

Yes. not with Government.

All negotiations were direct with your firm?-Through Messrs. Hastings.

You also said at the last hear-

Shooting

[SPECIAL TO "CHINA MAIL") An investigation is be- His foot was amputated and he was sent to Shanghai to have an ing that all costs, included every-ing carried out in Paris artificial foot. He went to Shang-thing appertaining to hal at my suggestion.

dict.

the job

represent a nett.10 per cent, for

plus 10 per cent, was agreed into the shooting there of Who paid for his, fare?-He upon, but that in fact did` not a young German sergeant While he was in hospital did Mr. Pearce, then acting. D.P.W. by an unknown assailant. you pay him any salary? Yes, insisted upon no office overhead $200 until February, when Gov-charges being included, and only ernment instructed us to reduce agreed on a portion of the salary it to $150.

As

Who was the individual who conveyed the instructions? most of our Instructions were ough Mr. Campbell I presume it was him.

Relevance?

Ten men and women, so-called Communists, were yesterday con- demned to 12 years hard labour,

N

of men on the job? Yes. and 1,500 Jewish firms in Paris

I then asked you if it was a have been “Aryanised. contract you were fulalling-Yes. Have you the contract?-I sent it to Mr. Barnett,

Jewish doctors and lawyers are now restricted to two per cent, "of their professions in Paris-Inter- national News Service.

The Chairman then directed the Secretary to read correspondence produced by witness. The first was a memorandum of the work March 31...

At this stage, Mr. Davidson to be done, previously agreed In reply, Marsman's stated that Said: May I ask what is the re-upon by the PW.D. and the firm. levance of this evidence on the The whole file of letters was read subject matter of an enquiry?in court, Chairman: The relevance is that

We have to enquire into the plac ing of contracts by ARP, and

Contract Terms

"taking into consideration execu- tive overhead, and full salaries together with promised. bonuses which have helped greatly, to ac- celerate the work, we shall not make more than

per FW.D. and make a comprehen- Th

The documents concerned the cent on the cost, which sive report of our findings re terms on which Marsman's and much-below the usual profit on. garding whether Government have Mr. H. J. Pearce, acting D.P.W. cost plus contracts of this nature.

"It is only fair to remind you," been overcharged and the work agreed. In a letter written by done. up; to standard; *

Mr. Pearce in February, 1941, the stated the letter further, "that a MR. DAVIDSON I STILL DO view was expressed that as much great deal of work has been put NOT SEE THE RELEVANCE OF of the work partakes. "somewhat in by our trading department who A PERSON GOING TO SHANG of the nature of repetition work," have sold all equipment, and sup HAI AND THE AMOUNT PAID. Marsman's might be prepared to piles at cost, thereby, foregoing: Chairman You will in a few accept a reduced percentage on their usual trading profits which

(Continued on Page minutes.

cost rate on future works as

HITS BACK WHEN ATTACKED

(SPECIAL TO "CHINA_MAIL")

A United States de- stroyer was attacked by an "unidentified" submarine while cross- ing the Atlantic yes- terday, according to a brief announcement by the U.S. Navy De- partment in Washing- ton last evening.

The destroyer, the U.S.S. Greer, was on the way to Iceland when she was attack- edwith torpedoes, which missed.

The official an- nouncement, while admitting that the destroyer retaliated with several depth charges, says the re- sults of the attack are not known.--Interna- tional News Service.

POSITION EASIER

[SPECIAL TO “CHINA MAIL”” Drastic measures for the defence of Leningrad are reported by the "Daily Mail," which says Stalin has decreed that respon- sibility for. protection of the city be placed in the hands of a Supreme Coun- cil of six under Marshal Voroshilov.

The Russians are mobilising all available forces, 'both.mi itary and civilian, for a starid at. Leningrad, it was added.

Meanwhile the Russian ~posi- tion at Odessa has improved,ax the result of enormous losses suffered by the German and Rumanian troops.

In Berlin the Nazis are making their usual statements. Leningrad, they say, "will be snared the fate of Warsaw," and, "Instead of smashing the city, the High-Com- mand is withholding Stuka dive bomber and artillery attacks, 03. Leningrad is practically encircled and it is no longer possible for the Russians to evacuate. by the risky International Ladoga route." News Service.

*** No Naval Loss

RUSSIAN 'PLANES

EXPECTED

In Baltic Baltic

[SPECIAL TO "CHINA MAIL"] NOT A SINGLE WARSHIP Russian flyingboats were ex-HAS BEEN SUNK IN THE BAL- pected to land at Seattle naval TIC, SAYS, AN OFFICIAL AN- base late yesterday.

MOSCOW tional News Service.

Interna-NOUNCEMENT. IN

QUOTED BY REUTER

PHILCO-DOMESTIC REFRIGERATORS

and

SUPER-COLD CORP.

COMMERCIAL

REFRIGERATORS,

DISPLAY CASES, ETC.

AGENTS:

GILMAN & CO., LTD.

REFRIGERATION DEPT.

Pedder Bldg.

Tel: 27017: