The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1920-11-12
TRIED TO CHEAT
SHIPPING BOARD
Chief Deputy Investigator
Says Scheme involving Mil
lions Was Almost Put Over.
TRAPPED BY DIcTAPHoNE
padded Payrolls," Sales of
Salvaged Goods to Govern
(. ment as New

New York, Nov. I'd, N. s.)-
Fresh revelations Of attempts to
cheat the United States shipping
board out Of huge sums by "padded'
contracts were made at today's
hearing Of the congressional Inves-
~tigat'ng committee.
1, John Meehan, chief deputy In.
vestlaator for the board, told on the
witness stand how contract In
VoivlnG millions OF dollars for sur
plus lumber, with heavy loss TO the
government was almost "put over"
BY the use OF dlctaphone. Meehan
said, his investigators ascertained that
a bid for i39, 900 900 feet of lumber by
the Chicago Housewreckins company.
owned by Harris Brothers, for osten-
sIbly $3.900.000 actually was for only
81. 400 900, Il. 8. Kiger then an employe
OF the Emergency Fleet corporation.
and J. X. Fawcett. OF Pittsburgh, a
former employe of the Harris Brothers.
but at the time head of the lumber de-
partment OF the Emergency Fleet cor
poration, were concerned in making the
bid. Meehan testified. Fawcett and
kiger, according to the witness, had
agreed to divide $s2.500 II the deal
went through. The bid was rejected
,atfer Meehan's investigators had
learned Of the alleged collusion.
klrer Now Faces Old CHARGE.
The lumber finally was disposed OF
at saving Of 81. 500, 900 to the govern
ment, Meehan said. Kiger, according
70 the witness. was being sought by
postoffice officials at the same time
that shipping board investigators, were
trailing him. He said Kiger was now
out on bail and faced an old charge of
using the mails to defraud Kiger came
10 New YorkTrom Detroit, the witness
continued.
Within short time he became lum-
per lnsnector for the Emergency Fleet
corporation, doing some really good
Minor Employees corrupted.
NMeehnn. also told OF investigations Of
overcharges by contractors. defraudIng
tue government by sale of saIvaPed
rood as new material, of padding
the pay roll" and of corruption Of
l,inor employees of the shipping board
ncd that ID. X. Kahaweiier & Co. of
New York had, during the present
year, purchased .lifoboats at $40 each
from the rifnited States navy salvare
department. ana resold them at sl10
each to the shipping board.
Meehan further revealed that William
Love. purchasing agent OF the north
Atlantic district for the shipping board
hnd sold 214 steamer rugs taken from
the. liner Leviathan and valued at st6 /
rnch. for Ss each to company In which
re was Interested. Love has, since been
indicted Il was Love. he added. who
nnrchased the renainted. salvag ged navy
life boats from Kahaweiler. but there
WIS no proof OF collusion between Love
ard that Arm m
The witness said his department was
iinvsstigating q charge that Kahaweiler
Egi hought 2 condemned life raft from
soldsst to the shippinG board at $1,000.
WIZ Damauinu Affidavit
\, Meehan introduced an AFFIDAVIT from
jNward McCann OF New York, stat
my he was offered $1,000 Fob with thesi
f1Iinplne board by Capt. Yates. man
Ngtng agent ut the boards division OF |
Crerntlons on tho condition that che |
tt TX
y Mccain. who had sought position
es purchasing agent and had furnished |
q letter OF recommendation from Jo-
wilson. refused to accept the offer. ac-
rrrAing to the AFFIDAVIT Chairman |
Nish develoned Testimony to show that |
ffere were mon on the payroll OF the |
~ 'npinc hoard who perforried no scrv- |
'NcS Mechan testified that sthe num-
,emnared 10 the number Of shipping |
bH"rd employees"
"no Won know the rares of rny such |
nr'r'oyes who were dischargedg' asked |
r. 'rninr Walsh
"One Of thew was brother of Gov. |
Ifdwartls. ~ New Jersey" replied the
'ri'ncss adding. 'T do not cnre to give |
rHt othnrs for I am not sure Of their
~ 'r,ra -
!, 'sked II he hnd know'edre OF corrup-
''cn of slipping board employees.
'foohan said.
s"Yes, Rs regards minor employees. hut
lhere was an insignificant number Of
res sos.