U.S. At War: Profits and Loss

In 18 months South Portland (Me.) Shipbuilding Corp. built only eight of the 84 Liberty Ships called for by its contract with the U.S. Maritime Commission. This was the worst record anywhere—but South Portland Ship's profits already were nearly 200% and could run up to 2,000% on the investment. Last week the House Merchant Marine Committee told why.

For three months the committee had investigated the plant, organized by William S. ("Pete") Newell, president of Bath Iron Works and good friend of Maritime Commission head Rear Admiral Emory S. Land. Pete Newell and associates had organized the firm with $250,000 borrowed from...

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