New-York tribune., 1920-11-27

and the witness said it was on the DAY
when Mccain and his friend Schwartz
kopf talked with Sands RELATIVE to hi.
affidavit. He said he had seen in
formed that Schwartzkopf had rcla
tions with l.. c. Marvens.
Congressman Kelley What theory de
you think induced Downey to let his
rotes get into the hands Of mar
Ike Sands?
Meehan-l told counsel for the Ship.
ping Board that Downey did it to boil
ster up his standing as affecting his
credit with the Shipping Board. Sands
did not want this in the record. for he
knew too much about the national
banking laws. This is merely nv opin-
ION am giving now.
Meehan added that he did not look
up Downey especially in respect to this
matter He said he had not looked into
any possible necessity for Downey
having to pay Sands 10000 to aid him
in getting contracts with the board or
the Emergency Fleet Corporation. The
board, he said. was at that time actu-
ally begging firms to take contracts.
Didn't Believe Sands Was Paid
Congressman Kelley-Was it not the
natural thing for you to have gone at
once to the credit department of the
board to look into this matter and see
# the account showed this transaction
Must there not have been some reason
why he could not get a contract if he
had to pay $4,000 to get one?
Meehan-1 don't believe he paid
Sands that $4,000 for that.
Congressman Kelley-We have the
%
Meehan-1 did not hear until TO-DAY
that Sands had written a letter to the
credit department of the Shipping
Board in behalf of the corporation
There was no reason to go into the
Fleet Corporations affairs.
Congressman Kelley-Why did you
not know that Sands had written the
very day the contract was signed?
Meehan-Because we did not do
had let hundreds of contracts without
trying to learn the financial rating of
contractors Many concerns without
any financial standing got contracts.
My theory is Downey gave that money
20 Sands to get that bank credit testi-
fed to. We practically had no credit
department at that time.
Borrowed Various Sums
Mr.. Kelley then read into the record
the abstract Of the report of the credit
department showing that the Provi-
dence Engineering Corporation was
sound.
Congressman Kelley-Tn view of this
report, what was the necessity for Mr.
Downey paying $4,000 to get a con-
tract?
Meehan-I don't believe he paid it
for that reason.
Congressman Keiley-Really, Mr..
Meehan. as a matter of fact you have
not actually investigated this case at
all, have you?
Meehan-That is matter of opinion.
Meehan said Boiling told him he had
borrowed various sums Of money at
different times from Sands.
Congressman kelley-Then why did
you not go to Sands's Office and look into
his accounts if you wanted to check up
the points involved closely? Didn't you
think it would have been proper to
have gone to this terrible man Sands
and this eminently proper man Boiling
and have checked up their accounts?
Meehan-No. | was convinced there
was nothing in the charge. Admiral
Benson was of the same opinion that
MI. Boiling was all right.
Boiling Went to Admiral
Congressman Kelley-Yes, but the
Admiral got his impression from you,
did he not?
Meehan-No. Boiling went to the
Admiral at the time the story was being
talked Of and told him the whole affair.
Congressman Kelley-You did not, as
matter Of fact, check up these ac-
counts of loans?
Meehan-No.
Congressman Kelley-Nor ask Mr.
Boiling for the aggregate of the loans i?
Meehan-Not that | recall.
Pressed on this point, Meehan said:
ut is possible Sands has been telling
the truth and boiling has been lying"
Says Inquiry Is Not Ended
Chairman Walsh-Mr Mcehan, do
you want this committee to understand
that you made an investigation of the
Boiling matter?
Meehan--To some extent.
Chairman Walsh--Hum to some ex-
tent! Mr.. Mcehan, is it not fact
that your investigation in this case
was stopped with the report made by
the Department of Justice and your
talks with Mr.. Twecdalc and Mr.. Boil
ing?
Meehan admitted it had, but wished
the committee to understand that no
suggestion had been made by anybody
higher up to stop it. He emphasized
again that 1t was, in fact, not ended
yet.
we will ask our questions and draw
our own conclusions" was Chairman
Walsh's comment on this statement.
Meehan's reply was that if Boiling
were guilty, he favored giving Sands
Immunity and nrnanc1t int, RnlIinx