The Washington times., 1920-09-08
Shipping Board Helped To Amas Millions Inquiry Reveals

the American Transatlantic Company
/ by the same boards and buresus or
the Wilson regime. The American
Transatlantic Company. was headed
/ by Richard @. Wagner. an American
citizen born in Milwaukee OF Teu-
tonic ancestry.
/ Wagner's company bought not Aus
trian or German ships, but DAnlsh
ships. II purported to pay for them
wholly with American capital IL hsd
no British citizens on its board OF
directors or list OF OFFICERS.
Both kerr's purchase OF Austrian
ships lust before the declaration OF
war against Austria and the Wagner
purchase OF Danish ships were IN
vestiKated by the Department OF JUS
tice and the Alien Property custodisn.
For four months these agents inyest-
gated the Kerr and Clegg purchases
and then gave them q clean bill OF
health. clegg got an important ana
confidential position in the shipping
! Boards offices despite his Norwegian
\ backing.
Wagner. however. was bounded.
Information supplied by British secret
service agents was transmitted TO
Washington and Wagner's financial
| tran sactions were combed for months.
lie finally admitted that he had been
| helped by persons with German affii-
| iations to float his S70O0,00O ship deal
and the Alien Property Custodian
took over his ships and companies,
although. he contended he had run
them purely as an American venture.
CLEGG EXPLAINS MATTERS.
"Why did you demand that w.
Ayeriil Hartman and his associates
should pay you the $4,000 900 in cash."
aslg Ah
Because we did not trust them
Clegg said. He continued:
| Events have proved we were Justi-
| ned in being careful. We had a right
under our contract to surrender the
] stock representing our minority IN
terest in the American Ship and Com
merce Corporation 10 receive legal
| tender. We feared a check, even
certified check. might be stopped.
1--WE had no intention OF taking the
money out OF the country. We intend
| to put every dollar of 1t back into
| American shipping. II we have to
pay tax, well and good. We viii
put what is left, back into ships. We
believe that the Jones bill erempts us
from taxation"
| When il was pointed out that the
Jones bill exempts from taxation only
| money realized by American citizens
from the sale OF ships. Mr.. Clegg
said:
: 81 will be an American citizen when
| make my next income tax return.
| 1--WE wrote to the Department Of
Internal Revenue about this matter.
and they told us the law would be
| literally construed. We believed
since the stock represented ships thai /
lit would be exempted"
". Averill Hartman denied point
blank yesterday the accusation of
Kermit Roosevelt. an cmploye OF Kerr
& Clegg, that he had tipped Off" the
! Treasury Department before Satur-
day mornings seizure OF the $4,000
600 in cash at the Chase National
Bank
Roosevelt said later:
That's funny. There were only
four people in on it--kerr. CieEg.
Hartman and J. Kerr. Clegg and l
didn't tip off the Treasury people.
They were there at eleven o'clock.
| one hour after Hartman had been
| over here to arrange the mai de-
tails. They didn't get their tip
through mental telepathy."
That great fnanciers. even those
dealing in millions are not above
spite work was indicated by well
authenticated version Of the events
leading up to Saturdays dramatic
raid in the bullion vaults Of the Chase
National.
This is the real story" said a
prominent shipping man:
Kerr and Clegg have been gcttin;