New-York tribune., 1919-02-26
Secretary Issues Statement
Giving Details of the
Scandal So Far Known
Only Five Under Arrest
Many Others Are Suspected,
but the Evidence Against
Them Is Not Yet Complete

Secretary Daniels last night an
rounced the results thus far of the in
vestigation into graft and bribery in
the New York Naval District. They
are:
Five commissioned and non-com-
missioned officers under arrest for
accepting money and gifts for aiding
the enlistment, transfer and dis
charge of men in the Naval Reserve.
Many civilians and other Off
GERS and men implicated but not yet
under arrest.
The tracing of $4,000 in bribes,
with additional money ard valuable
gifts being investigated.
Secretary Daniels's summary of the
probe being carried OH under his or
ders by Major John F. Muir added no
new names to those already made pub
lie. The five men now being held are
Lieutenants Benjamin S. Davis and
Benolt James Ellert; Ensign Paul
Beck, and Chief Boatswains Lloyd G.
Casey and Frederick A. Jones'
The statement set forth that Davis
was believed to have received $4,000
for enrolling men in the naval service
and that Ellert was believed to have
received $4,000, in addition to a large
number of presents, for having Sc
cured assignments for applicants that
would enable them to continue their
business in civil life.
The Secretary said that Ensign Beck
had received at least $1,000, a number
of valuable presents and "costly en-
tcrtainments" for easing applicants
into "safe berths on shore" Evidence
in the possession of the department
showed that Casey received total of
about $4,000 and valuable presents for
placing enlisted men on shore duty.
The Secretary's Statement
Secretary Daniels's statement reads
"The following are the names of those
now under arrest connected with the
investigation on which Major Muir is
engaged:
Lieutenant Benjamin S. Davis, Med
ical Corps, U. S. N. R. F.; Lieutenant
Benoit James Ellert, U. S. Mr. F.; Chief
Boatswain Lloyd G. Casey, U. S. N. R.
f.; Ensign Paul Beck, U. S. N R. F.,
and Chief Boatswain's Mate Frederick
A. Jones, U. S. n. r. F.
"Beniamin S. Davis was on duty at
the enrolling office, 81 Chambers Street,
and in connection with his work as
medical examiner it is alleged he re-
celved on numerous occasions sums of
money and presents for enrolling men
IN the naval service, some Of whom
were physically defective and whose de-
fects required waiver before enrolment.
The total amount of money received by
percentage of which was passed on to
one or more other officers who were
engaged with him IN this money max
ing scheme.
Many Other Offenses
"Leutenant Davis was tried by court
martial at the navy yard, New York, in
July, 1918. was convicted and SEN
fenced to be dismissed from the naval
service and to be imprisoned for three
years. A review of his case by the
department gave rise to the belief that
others were implicated, and the inves-
tlgatlon now under way was ordered.
AS result of the investigation the
department is in possession Of facts
indicating that there were many other
offenses committed by DR.. Davis in
addition to those on which he was
brought to trial
"The evidence in the records of the
department shows that Lieutenant FL
lert took advantage of his position to
collect money from applicants As a
result those applicants financially able
were favored with enrolment in the de-
sired ratings and assignment to jobs
IN New York. Payment was further
more made for the purpose of securing
assignment of applicants to such duty
as would enable them to continue busi-
ness in civil life.
$50 to $500 Each
at is believed that Lieutenant Ell
lert received approximately $4,000, in
addition to large number of presents
of various kinds and considerable high
priced entertainment. The money came
to him in amounts ranging from $50 to
$1,000. Lieutenant Ellert is now con-
fined on board the U. S. S. Granite
State awaiting trial by general court
martial.
"Chief Boatswain Lloyd G. Casey
was stationed at Section Base 6, Ben
sonhurst, N. Y, as an executive officer,
and as such had charge of the records
and assignment of the enlisted person
mel at the station. Upon the signing
of the armistice il was his duty to
make recommendation on the applica-
ton of members of the naval reserve
force for relief from active duty The
evidence shows that Chief Boatswain
Casey received money to the total
amount of about S3,O00 also some
valuable presents, for placing on shore
duty at Section 6, Bensonhurst, sew
eral enlisted men. He also received
from an enlisted man 5000 for early
relief from active duty in the navy.
Ensign Paul Beck was only recently
promoted to ensign in the pay corps
Il