Dream of steel mill at shipyard faces taxpayer anger
Frederick C. Othman reports on Florida St. Johns river shipyard where Eng. Fred Weber and Eng. David R. Knapp pursued turning surplus wartime yards into a large southern steel mill. Cash payments tied to their scheme drew scrutiny as lawmakers question the $25,000 already spent and a proposed $1.5 million borrow.
MENTIONED IN THIS ARTICLE
Frederick C. Othman
Washington
UPR
St. John's River
Florida
Reconstruction Finance Corp
Eng
Fred Weber
Shipbuilding Company
David R. Knapp
Maritime Commission
Fred
Dave
Congressional exchange over payments and FBI probe hinted
The congress man pressed about money while Fred claimed his income came from a pipe company contract worth $25,000 a year. Rep Rizley called Fred and Dave goons and vowed the FBI would investigate their supposed dream. Fred reacted with surprise before continuing.
MENTIONED IN THIS ARTICLE
Fred
Pipe Company
Rep
Rizley
Dave
FBI
Crook
Oklahoma
Fred and partners seize Tampa ship yard and profit
Fred and partners gain control of the Tampa Ship Building Co and buy the St Johns yard from the maritime commission for 1.926 million dollars. They discovered unlisted steel and machinery and paid the government 2 thousand dollars more, while selling the yard's equipment as junk to net more than their total outlay. Louis E. Wolfson of Jacksonville joined the Peninsula Steel Co to operate the yard.
MENTIONED IN THIS ARTICLE
Fred
Pipe Company
Tampa Shipbuilding Co
St. Johns Yard
Maritime Commission
Louis E. Wolfson
Jacksonville
Peninsula Steel Co
Loan RFC and Empty Assets Highlight Firm’s Taxpayer Risk
The report notes a 1,500,000 loan and remarks that Fred didn’t contribute real money to the firm. He adds no assets exist in the corporation, a point that seems to shock him. Taxpayers are warned about the potential consequences.
MENTIONED IN THIS ARTICLE
RFC
Fred
Taxpayers
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