History
The Port of Portland's administration was embroiled in questionable business practices in the early 1930s. Port authorities, including James H. Polhemus, the general manager of the port from 1923–1936, were found guilty of mismanagement, both through conflict of interest and cronyism, as well as negligence, sale of equipment at lower than assessed prices, carelessness, and preferential treatment of some private shippers. Much of the blame was because of discounted rates for using the port's dry dock. Companies specifically named as beneficiaries of this graft were McCormick Steamship Company and States Steamship Company. The investigating committee called for the resignation of Polhemus and other staff.
On November 20, 1933, shortly after the commission found Polhemus and his staff guilty, professional auditor Frank Akin was found shot to death. His murder was never solved, leading to many conspiracy theories. In mid-December, the Port commissioners voted to reject the investigating committee brief, meaing Polhemus was exonerated. Polhemus stayed with the Port for another three years before becoming a vice president at Portland General Electric. MacColl summarized the events in 1979, saying this:
clearly revealed the political nature of the Port of Portland Commission. It has always been embroiled in politics; it is still embroiled in politics.... The unpaid job of Port commissioner remains one of the choicest rewards that a governor can bestow upon his close friends and largest political backers. The very nature of this kind of an appointive process is fraught with potential conflicts of interest.
Read more about this topic: Port Of Portland (Oregon)
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