Perth Amboy evening news., 1918-08-05
SHIP BUILDING
GRAF 7 CHARGE
Perth Amboy Dry Dock Com
pany Instrumental In Having
Men Arrested In Washington
GOT OFFER OF CONTRACT
Men Posing as Influential With
Government Authorities
Would Open Negotiations
GOT OFFER OF CONTRACT

Largely as the result of the infor-
nation given to the government intel
ligence department by President w.
Parker Runyon, of the Perth Ampoy
Dry Dock Company. three arrests
have been made in Washington OF al
legged grafters who have been en-
deavoring to defraud the government
The men arrested are Edward L..
Travis, former law partner of Repre-
sentative Kitchin, Of North Carolina,
majority leader in the House, ana
manager of Senator Overman's cam
paign for election several years ago;
gelinm B. Joseph and Leon M. Green.
There is a technical charge against
the men of conspiring to obstruct
the draft by getting job for Green
which would place him In dererreo
classification. It is charged more gem
orally, however. that they, acting In
connection with government employees
promised to get orders for from be-
tween eighteen ad twenty-four ships
at a price higher than most contracts
provide.
The evidence which has been Sc
cured in the matter by the intelh-
gence department connects at least
one minor Official of the shipping
board with the alleged conspiracy to
obtain contracts from the chipping
board at extra high prices. Sew
erai government employees are under
suspicion of having agreed to be aPso-
ciated with the men who are said 70
hove promised to get orders for steel
ships at O price of S1e5 per ton. which
is considerably higher than the hg-
ures contained in most contracts.
The case had It's beginning, as far
as the Perth Amboy Dock Company
is concerned, about three months ago
when Mr.. Runyon as president OF the
dry dock company, received tele-
gram from Chicago asking him II his
company would be interested in build
ing q certain number of steel ships.
Mr. Runyon suspected something
wrong and Immediately turned the
telegram over to the government In
telliEerce Office. Mr.. Runyon did not
keep q copy of the telegram. but stat
ed When questioned this morning, that
he thought Il read as Follows.
would you be interested In build
ing sixteen Q 900 ton steel shipsT
The ship contracts, which were
never actually negotiated, were to
have been given to the local dry
dock company which rendered con-
siderable assistance following the
original "tip" in running down the
men after the proposal had been re-
ceived by telegraph.
Joseph, 1t is charged, approached
the dry dock with the story that O
close friend of his in New York. who
he said, was a nephew Of a cabinet
member was in q position to get mil
lions of dollars worth of contracts
from the shipping board at high
prices.
after being notified of the case. as
signed Richard F. Mcdonald to repre-
sent the Perth Amboy Dry Dock Com
pany to discover the mems game. NC
Donald is said to have learned that
the cabinet members nephew was
Green.
1t was proposed, according to in
formation received in the case. that
Joseph was to receive s1.6o> ton on
each ship for which orders were oo-
4ained at prices above the average
while Green was to get fifty cents a
ton. Green was also to get in addi-
ton, IL was said. position with the
shipbuilding company at bsg salary,
this position making him practically
exempt from the draft,
Secret Agent Mcdonald. the Perth
Amboy Dry Dock Company's supposed
representative, was referred by Green
10 Travis In Washington, who was said
20 have posed as having great influence
with the shipping board. He also is
said to have mentioned his former con-
nection with Representative Kitchin
and Senator Overman.
The three men under arrest are
ehfrRed with having been involved In
another effort, several months ago, TO
get ship contracts on a commission
Zee basis, but were unsuccessful
Travis. IL is charged. was 70 have re-
ceived a fee OF 100000 for his latest
efforts.
The information which led to the
arrest of the men was obtained orig
inaliy by the Navy Intelligence De-
partment which was later assisted by
fhe Department OF Justice agents
other shipbuilding contracts are also
being investigated.
In connection with activities OF
contingent fee agents Il has been re-
norted for some time that secretaries
Of members Of congress acted as in
formation agents OF the commission
Zee men, although as yet no evidence
varranting prosecution has been de-
Veioped against these secretaries.
BaiI for Travis. Joseph and Green
has been fixed at $4,000 each by Unit
"a states Commissioner Richardson
Green whose home Is In New York.
was member of the STAN OF former
Covernor Blease, Of South Carolina.
Joseph resides In Chicago at the
present time.
Liberty Loan Committee % Meet
A meeting OF the Liberty Loan spe-
- -.-o.,,t4tra cortnfnttfaA will ba held