New-York tribune., 1920-11-26
r. w. Boiling
TOBeCalled i'm
Ship Inquiry
Presidents Brother in Law
and Head of Downey Ship
building Corporation to
Answer Sands's Charges
Contractors Deny Bribes
Letters to Walsh Committee
Say Contract Was Signed
Observation-Disclosures


When the Congressional committee
investigating the affairs Of the Ship
ping Board resumes its sessions in the
Federal Building, in this city, this
morning it will have on the list of
witnesses expected to testify before
it f. ". Boiling, President Wilson's
brother-in-law, and Wallace Downey.
president of the Downey Shipbuilding
Corporation. Both were mentioned
last week in testimony before the
committee by Tucker K. Sands, who
alleged that they had been involved
with him in graft connected with the
granting of contract by the Shipping
Board.
Mr.. Downey and Mr.. Boiling both
have expressed their readiness and
desire to go before the committee and
.ell their side Of the story, which is in
fat contradiction with that Of Mr..
Sands. according to statements made
public by Mr.. Boiling in Washington
and by Mr.. Downey IN New York.
Another witness expected to be
heard by the committee is William H.
Denman, former president Of the
Emergency Fleet Corporation, who left
hat post following controversy with
General Goethals over the construction
of wooden ships. Mr.. Denman has
requested to be heard before his re-
urn home to the Pacific coast, and
vas assured by Congressman Joseph
Walsh, chairman of the committee,
nat he would be given an opportunity
TO testify when the committee recon
venes
Downey Firm Denies Charges
The Downey Shipbuilding Corpora
ZION yesterday made public CORE
spondence with the Walsh committee
IN which the corporation and the
Providence Engineering Corporation
answered the charges of bribery made
by Mr.. Sands. Mr.. Sands testified that
the Downey Shipbuilding Corporation
mad paid $40 900 to him, Mr. Boiling
and to officials. of the Emergency
Fleet Corporation to obtain a con-
tract.
The Downey corporation denies that
Sands aided it to obtain shipbuilding
contract and denies also that it paid
money to Sands or any official of the
Emergency Fleet Corporation.
The statement asserts that the con-
tract the Downey Shipbuilding Cor
poration obtained from the govern
ment to build ten ships was signed
months before Wallace Downey met
Mr. Sands.
Providence Corporation Paid $4,000
Mr.. Downey, speaking for the Provi-
dence Engineering Corporation, OF
which he is the head, also sent letter
to the Walsh committee. In this com
munication the Providence corporation
declared that 1t did pay $4,000 to Mr.
Sands. The circumstances under which
the payment was made are narrated as
fellows:
Many months after the Downey
Shipbuilding Corporation had obtained
its contracts the Providence Engineer
ing Corporation put in a bid to the
government on tugs. The bid proved to
be the lowest, but the Shipping Boart
requested guaranty of the respon-
sibility of the successful bidder. AT
this point Mr. Sands was brought for
ward as vice president Of the Com
mercial National Bank of Washington
He agreed that for $40 600 his bank
would make thorough investigation
as to the responsibility of the Povi-
dence Engineering Corporation. Mr.
Downey paid the money to Mr.. Sands
as representative of bank and fol
services only, without any knowledge
whatsoever
anything to Mr.. Boiling or anybod,
else In its communication to thu
Walsh committee, signed by Wallac,
Downey, president; A. A Cannon, sec
retary-treasurer, and Henry c. Hunter
counsel, of the Downey Shipbulldint
Corporation, the corporation declared
I'VE deny that Tucker K. Sands aideC
the Downey Shipbuilding Corporation
in any way or manner to procure
shipbuilding contract from the Emer
gency Fleet Corporation. We deny
that we paid money to Tucker 4. Sands
or to any official of the Emergenc!
Fleet Corporation to procure such
contract.
Contract Signed July 3, 1917
The Downey Shipbuilding Corpora
tion had only one shipbuildlng contrac
with the Emergency Fleet Corporauon
This contract, dated July 8, III I, wa
for he construction of ten steel ships
and is known as contract No. 80 5. [
Wallace Downey, founder and presi
dent-manager of the Downey Snip
building Corporation, negotiated all o
the initial stages of the contract ex
clusively with General Goethals, thel
the vice-president and general manage
Of the Emergency Fleet Corporation
and Mr.. Theodore f. Ferris, its nava
architect Negotiations started abou
Nav. 1917, and after General Goethals
Mr.. Ferris and Wallace Downey ha
agreed upon the fundamental details o
the contract, such as price for mate
rials and labor, technical designs, plans
specifications, etc, Wallace Downe
completed negotiations with Joseph I
Cotton, then counsel for the Emer
gency Fleet Corporation. The contrac
was finally signed by William II. Den
man, president Of the Emergency Flee
Corporation, acting on its behalf an
Wallace Downey for the Downey Ship
building Corporation.
Prior to and during the negotia
tions for this contract and for Ion
period thereafter, Wallace Downey ha
never seen nor heard of Tucker X
Sands or Of any one of the other per
sons mentioned by the witnesses befor
you on November 20. Neither Tucke
K. Sands nor any other party or par
ties, except Authorized officials an