-4.
TIIE StfXDAY OREGOXIAX, rORTXAXP, NOVEMBER 21, 1920 7
RELATIVE OF WILSON
J SHIPPING SCAFJDA
L
R. W. Boiling, Brother-in-Law
of President, Accused.
CONTRACT PLOT CHARGED
Witness Tells of 3Ien Who Dis
tributed $ 10,0 0 0 Jobhold
ers Arc Implicated.
'Continued From First Pag-e.)
ever got a cent from anybody for aid
ing to get a contract that money
given him -was a "loan." Later, he
stuck to a statement that Boiling was
to get his share of the transaction
that he gave Sisler $5000 and that
he lent Sisler for one of his compan
ies $5000 on his note, which note he
still has. He had never had anv con
troversy with Boiling. He also told
of a purchase by him from Boiling of
a lot for $900.
Sanda Under Indictment.
Sands testified he was under in
dictment "for allowing a company to
overdraw a shipping company, in
which I was interested." He testi
fied he was then "cashier" of the
Commercial National bank of Wash
ington. He also testified he had en
deavored to secure Mr. Boiling's in
fluence to have this case settled.
"This document says," . Chairman
Walsh informed the witness, referring
to the photostate, '"that $40,000 Is to
be divided in the following manner:
$25,000 to be paid in one lot and
equally divided in the sum of $6250
for each of the four of us Sisler,
Boiling, Cranor and myself.'"
"Mr. Cranor was to share, too?" Mr.
Walsh asked.
"Yes, sir."
"The representative of Mr.
Downey?"
"Yes ,sir."
"And you say 'during the negotia
tions Mr. Downey came to Washing
ton. He ratified the agreement
whereby $40,000 compensation was to
be paid?'"
"1 think I did," the witness replied.
Sand Introduce Cranor.
Sands said be introduced Cranor to
Boiling and Sisler. He" testified to
receiving the notes from the repre
sentative of Downey but added there
was one thing be "would have to look
up," referring to the photostate docu
ment "and that was whether I paid
Mr. Boiling any of the proceeds of
these notes."
"Don't you know you never paid
him a cent?" Mr. Walsh asked.
"1 don't recall that I did pay him
on this deal; I don't think I did."
Sands then testified he had pur
chased a lot from Boiling and that he
etill owed Boiling $900. He also testi
fied to asking Boiling to intercede for
him with the department of justice to
get the case against him brought by
the bank out of the department of
justice. Mr. Boiling had refused, he
testified.
"So Mr. Cranor came to Washington
and had several conferences with you
and Mr. Boiling and Mr. Sisler?" in
quired Mr. Walsh.
"Yes eir," replied Sands.
"And you were to use your influ
ence with these two gentlemen?"
"I simply introduced them, that's
all."
Money for Introduction.
'.'What were you to get money for
this introduction?"
"That is what I thought."
Ho said Mr. Downey "insisted" that
tho "ostensible consideration for
these notes should be for services of
Sands in procuring a loan for
Downey."
He said he did procure a loan for
Downey amounting to $100,000, which,
he said, was "very favorable for the
bank -that it was to be left on de
posit." Sands testified that, in all, he re
ceived in notes from Downey $30,000.
Asked why he did not get the balance
of the $40,000 he alleged was prom
ised, he said "Downey raised such a
kick I rebated gave him back one
note and agreed to rebate $5000
more."
Sands was asked "how much money
Mr. Boiling did get."
"I do not think Mr. Boiling got
any," Sands said.
"Why didn't he get it?"
"Because he would not take it,"
Sands replied.
"And he never knew he was to get
It?" Mr. Walsh asked.'
"Well, 1 suppose he expected to
get it."
"And did you not promise him
any?"
"I think I promised him, sure, that
he would get his part of the fee when
we got the money."
Photostate Held Correct.
"Well," Mr. Walsh asked, reading
from the photostate, "if he got no
money, how came it you said in this
document 'it was always understood
by Mr. Boiling and among us, that
Mr. Boiling was to receive $6250 from
the proceeds of the discount of the
Dotes, but for some reason he became
worried and would not accept the
balance of the $6250 still due. 1 had,
tn the meantime, advanced to him in
different sums approximately $1800.'"
"That Is correct." replied Sands.
The witness had testified that he
"loaned Mr. Boiling $1800."
Replying to Chairman "Walsh's
questions as to which of his state
ments was correct. Sands said: '.'What
I put in there is correct."
"How did you give him that $1800?"
loan about $1850
Sisler have any
Mr. Walsh ' shot
"I gave him a
or maybe $1950."
"Did you let Mr.
money that way?"
back.
"I loaned one of his companies that
he was in. I think. $5000 and I think
I gave him about $5000 I cannot say
exactly."
Slater Interested In Gravel.
He said It was a gravel company
in which Mr. Sisler was interested
and added he took his note.
"Did Mr. Boiling ever repay you
the $1800 he borrowed?"
"I think he gave me back about
J 3 00." .-.
"He still owes you the balance
then?"
"Yes. sir."
"If you have no note or other evi
dence of that loan, how are you going
to collect it if he refuses to pay?"
"Well.'.' said Sands, "I do not ever
expect to collect it. ' I did not expect
to collect it when I loaned it. I
thought he would be entitled to that
as his part of the commission."
Representative Kelley asked the
witness:
"Was this a eort of conspiracy be
tween you and Mr. Cranor to use Mr.
Boiling in. this transaction, and you
to keep the money, all of it?"
"No, it was not Intended to do
that." the witness replied.
"Did Mr. Boiling say he would see
the parties who would let the con
tract?" "No. sir."
Sands also said Boiling did not eay
he would use his influence, and when
asked- why he was to give him part
of the money if he were not going toi
perform any service. Sands replied:
"Well, he and Mr. Sisler worked
together."
"Now, here are two men in con
nection with the shipping board," Mr.
Kelley said. "They are not, however,
connected with the letting of con
tracts. You agreed to pay them $10,
000 apiece. Now I ask you what
were they to do?"
"Not $10,000 $6250 apiece," said
Sands. "Fifteen thousand dollars was
to go to Mr. Cranor."
"Now. what was your understand
ing with Mr. Boiling as to what he
was to do?" Mr. Kelley asked.
"Mr. Boiling was not to do anything
further than to help with Mr. Sisler."
"Why did you seek to blacken Mr.
Boiling's reputation by consenting to
this statement in this account?" Mr.
Kelley asked.
"Well, he got about $1800."
"You said he borrowed that from
you."
Books Show Loan.
"Well, I put it as a loan on my
books, because I thought it would
be better as a loan when he got to
repay it."
"But it really was a part of this
transaction, was it?"
"Yes. sir."
"Did you not tell Mr. Walsh it was
not?" v
"No, sir; I did not say so."
"Then,'" Mr. Kelley continued, "he
really did get $1800 out of the money
you obtained from the discount of
these notes?" .
"The first proceeds, yes, sir," Sands
said. .
"You swear that Mr. Boiling re
ceived $1800 'out of the money you
received from discounting the first
note?"
Sands then said he had put it down
as a loan "because it would look bet
ter and not because it was any differ
ent." s
Sands also testified that he had
paid Cranor $9000.
"Did you pay Mr. Sisler his?" Mr.
"I think I loaned him $5000 and I
think I paid him $5000."
"What do you mean by 'loaned him
five and paid him five'?"
"I paid him five, around about five
in money, and then I loaned him."
"Out of the proceeds of this first
note?"
SSOOO Lent on Kote.
"I don't know about the proceeds
of the first note. I think I let him
have about $5000 of the first note.
Then 1 loaned him for his company
which he has not paid me. $5000 more.
He paid me $500 back on that."
Sands said" the .loan was a personal
loan. -He also said Sisler was then
secretary of the shipping board.
"And you paid it to him for his in
fluence with somebody in the ship
ping board to get the contract for
Downey?" Mr. Kelly asked.
"Well, I cannot say that," Sands re
plied. "What was it paid for then?"
"That is about it, yes sir. We agreed
that if we got the money he would
get his, too."
The witness said he still had Sis-
ler's note for $5000 on which $4500 was
siill -due. and that he could produce
it,
Mr. Kelly asked Sands if Mr. Boil
ing's refusal to help him with the
district attorney at Washington had
anything to do with Sands bringing
him into the case.
"No sir," said Sands, "I really re
gret bringing him in because I am
really devoted to him."
OFFICIALS EXV TESTIMONY
Heads Request. They
Board.
Shipyard
Called Before
Be
NEW YORK, Nov. 20. Testimony
given today before the Walsh com
mittee investigating shipping board
affairs, naming the Downey Ship
building corporation of New York in
connection with alleged collusion to
obtarn contracts was declared by of
ficials of the corporation tonight to
be "absolutely false." They declared
the company "did not pay any bribe
of any kind to any party or parties."
Denials of the allegations and a
request that they be immediately
subpenaed . to . appear to disprove
them were made in a telegram sent
by oriicials of the corporation to
night to Chairman Walsh.
XOTHIXG TO IT. S.lS BEXSOX
Explanation Boiling Made to Chair
man "Perfectly Satisfactory."
WASHINGTON, Nov. 20. Chairman
Benson of the shipping board in
formal statement regarding charges
of bribery made before the Walsh
committee in New Tork against R. W.
Boiling, treasurer of the board, de
clared that Mr. Boiling's explanation
of the report was "perfectly satisfac
tory..' The chairman said that after Mr.
Boiling was appointed treasurer. Mr.
Boiling told him "the whole story of
the alleged charges," made by Tucker
K. Sands.
"His explanation was perfectly
satisfactory," said Admiral Benson.
"In addition, the matter was dis
cussed with Colonel Goff, our general
counsel, and together, we directed that
a thorough investigation be made."
Attached to the statement was a
copy of the report of the investiga
tion made by the division of investi
gation, dated September 23. It was
HAZELWGOD
Sunday Dinner, $1.25
Cream of Chicken Corn Soup, or
Chicken Broth in Cup
Celery Ripe Olives
Choice of
Head Lettuce, Roquefort Dressing, or
Shrimp Salad
Choice of
Leg of Spring Lamb, Mint Sauce -Boast
Prime Ribs au Jus . '
Roast Turkey with Cranberry Sauce
Roast Leg of Veal, Dressing
Roast Young Chicken, Giblet Sauce
Baked or Hashed Potatoes
Choice of
Stringless Beans Creamed Cauliflower
Lima Beans, Buttered Asparagus on Toast
Rolls or Bread and Butter - - .
French Pastry, Pudding, Ice Cream or choice of Pie
lea Coffee Hot Chocolate Milk
Hazelwood Plate Dinner 75c
'Cream of Chicken Corn Soup .
Choice of Salmon, Halibut or .
Chicken Fricassee with Noodles or
. Roast Veal with Dressing
Stringless Beans, Creamed Cauliflower ". - .
Mashed or Baked Potatoes
Choice of Pie, Pudding or Ice Cream
Tea Coffee .Milk or Buttermilk
Hazelwood Vegetable Dinner 40c
Baked Sweet Potatoes .
. Creamed Cauliflower Lima Beans
Asparagus on Toast
Bread and Butter
Tea Coffee or Milk
?HESlfazelcDOod
QJ ACONFECnONEKf &RESMRANT
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ALDER. STREET AT WEST PARK.
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DOLLS
After all, it is the children
who enjoy Christmas most,
so why not make them happy
with a doll?
We have placed on sale our
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made DOLLS at
25 OFF
Amberg's Walking
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388 Washington St.
127 Broadway
signed by Frank Burke, chief of di
vision. "I saw Houston Thompson, vice
president of the federal trade com
mission, and who was for some time
up to the latter part, of 1919 assistant
attorney-general." the report said,
"who told roe that Mr. .Boiling came
to him about two years ago ana re
ported an unsigned communication
had reached - Mr. Tumulty in which
the writer charged he had- accepted
part of $40,000 which 'was paid by
Downey of the Downey Shipbuilding
company to Tucker Sands.
"Mr. Boiling requested Mr. Thomp
son to make thorough investigation
because of the fact he was charged
with a serious crime and if he was
guilty he should be punished, if in
nocent, his innocence should be estab
lished. The letter, it eeems, was
either misplaced or destroyed so that
nothing was done at the time."
After receipt of a second unsigned
letter which they believed emanated
from the "Sands family." Mr. Thomp
son said, Mr. Boiling had told him
Tucker Sands had made "an urgent
demand that he (Boiling) see the
president and use his influence with
the president to have activities of the
department of justice stopped and
have the prosecution against Sands
dropped."
"Sands." the statement continued,
"was under federal indictment, charged
with violation of the banking act. On
advice of Mr. Thompson, Mr. Boiling
wrote a letter to Sands telling him
that while he regretted he had be
come involved with the government,
he could not and would not approach
the president."
Investigation by the department of
justice was then ordered at Boiling's
repeated request, Mr. Thompson said.
Pre-war transactions between Mr.
Boiling and Tucker Sands, which "ag
gregated not more than J300." were
mentioned and In this connection Mr.
Burke's report said Mr. Boiling had
produced his check stubs and other
documents, "which, after investiga
tion, proved - to be transactions out
side of and prior to the date on which
Sands charged Downey paid over a
sum of money, part of which he
charged was given to Mr. Boiling."
"Bank accountants from the depart
ment of justice traced out all checks,
notes, drafts - and "other papers," the
report said, 'nd failed to find any
thing that corroborated the statement
of Sands," adding, "in the belief of
Mr. Thompson, it was blackmail engi
neered by Sands to force Mr. Boiling
to intercede with the president to
save Sands from further prosecution."
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IS1IH1L
MY WO 1MI
V From "The Translation of a Savage") 3
Cast includes Elliot Dexter and Mabel Julienne Scott J f
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