The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1920-11-13


man Walsh khowins several hundred
| commission payments 10 engineers
ana other employees OF the shipping
Board.
wsycott testified these "conmis-
SONG totaled about Ss.0ee q year.
He said the payment OF thsss sums
seemed to be the custom" and sddsd
that he condemned It. He insisted.
however. that the "oomudissionS' cams
out OF the compsny's proft and were
were charged to the shipping Board
NeADoO's NAME MENTIONED.
The name OF william Gibbs Nc
Adoo. former Secretary OF the Trsas-
ury' was mentioned 1t yesterdays
hearing In connection with the flood
OF public money (more than $4,000
OOO) that poured from the Shipping
Board into the Golfers OF Charles w.
Morse.
Concluding the amazing story OF
his investigation OF 2,4OO cases of
fraud and graft. John T. Meehan.
deputy chief OF the Shipping Boards
Division OF Investigation, was asked
by Representative Foster. OF Ohio. q
member OF the committee:
was politics injected into the
board, and did this result In waste
or loss OF public money!"
ATTORNEY FOR MORSE.
Mr.. Meehan spoke OF the interest
OF Representatives and Senator's in
claims OF their constituents and other
matters. Then he puffed at his Gig.
arctic a moment and continued:
There has been considerable criti-
cism by employees of the Fleet Cor
poration. men settling contracts. etc.
OF the activities of william G.. Nc
Adoo. former Secretary Of the Treas
ury. after he left the Cabinet.
while I don't believe either Judge
Payne John Barton Payne, former
| chairman OF the board) or Admiral
Benson tpresent chairman) would be
influenced by the injection OF a man
or Mr.. McAdoo's standing, l know
there was n feeling in the claims de-
partment and elsewhere that Mn
Charles w. Morse was getting larger
amounts OF money and other favors
than he would receive II Mr.. McAdoo
had not been his attorney.
McADOO'S AIASE GETS JOB.
"Wtthin two weeks Of MI. Me-
Adoo's resignatIo. from the CabI.et,
Ais secretary, w. }. Martha, appeared
before the board as COUNSEL for the
virginia ShipbaiIding C0rsration. one
OF the Morse companies. Martin later
Became treasurer OF the virginia
shtpbuildlaG Corporation. MI. Me-
AdeO becane counsel for Mr.. Morse
and represented Ain before the
board
"'Is a brother OF Comptroller of the
Currency Williams connected with the
Morse interests?" Mr.. Foster asked.
II do not know"
Are there any other cases where
I'd l.
| cur to you?"
Il do not wish TO be misunder.
stood to say that Mr.. Mcdoo ham
pered the boards operations. mere
iy state there was a feeling among
| employees Of the board that Charles w.
Morse was being given more liberal
treatment because McAdoo was his
attorney"
AUDITOR CONGRESSES.
Previously Mr.. Meehan had told OF
trip he made to Alexandria, Va. to
examine matters connected with the
accounts Of the Virginia Shipbuilding
Corporation. He obtained a confess
sion from John Rhinehardt. Fleet
Corporation auditor, stationed at the
Morse plant.
The witness continued:
"Rhinehardt confessed he had re-
with the knowledge of Benjamin w.
Morse. Charles w. Morse's son. He
also confessed to having signed
blank vouchers for hundreds of thou
sands of dollars against the Elmer
gency Fleet Corporation. Also he con
fessed he Had approved bills for
building materfalS which were 70 be
used ut the ship yard. bat which ac-
tualiy went into q housing project
known rs ROsenOnt. in which Charles
w. Morse and his associates were in
terested.'
Mr.. .Meehan said he had turned the
crooked officials confession over to
the Department of Justice, but so far
as he knows no indictments have
been found or other action taken.
TUMULTY ALSO MENTIONED.
As a result of this testimony and
other information in the possession
of the committee, the New York
American was reliably informed last
night. both McAdoo and Morse will
be called as witnesses. Morse will be
asked specifically how many war
baby" companies were organized by
him or his friends and what favors,
in money and otherwise, were given
him, by the Shipping Board and
Emergency Fleet Corporation.
The name Of Joseph =. Tumulty.
secretary to President Wilson, was
mentioned by Mr.. Meehan in connec-
ton with sinecure job offered to
one Edward. A. Mccain by Capt.
Charles Yates; manager OF the divi-
sion of operations in New York.
McCann, according to Meehan. was
told he could draw his $1,000 salary
but he "need not come areund.-
"Meehan said he read In the files
n letter DurportfnE to he from Sec
Rotary Tumulty, personally vouching
for Mccain aad hoping be would be
given Favorable attention."
SALARIES FOR NOTHING.
A number Of men were discharged
for drawing salary without rendering
aliy service said the Witnesa among