New-York tribune., 1920-11-13

DIRK TRIBU NE. S AT
enough beef to last nine months, most
Of which was later thrown overheard.
but which yielded tiny sum to the
captain and officers. Captain Rye, the
chief engineer and another officer Of
the ship were later indicted in New
York, 1t was. testified, and the captain
was released on bond, to appear for
trial November Is. Instead, Mr.. Meehan
said, the captain took his wife, fourteen
trunks and other belongings, went
down to Key West, boarded a schooner
and has not been heard from since. He
is believed to be In South America, and
search for him has been instituted.
Many Cases of Petty Graft
Mr.. Meehan also mentioned many
cases Of irregularities in overcharglng
on Shipping Board vessels, in the COL
lection of double fees and many other
otfenses. In some cases, he said, resti-
tuition had been made, while in others
prosecutions had been instituted. The
ajority of these cases, he said in
volved petty graft. One firm, however,
Mr.. Mechan said, returned to the board
$4,000 which 1t paid in commissions IN
one year and, in turn. had charged up
to the board a. supplies. The firm was
that of T. C. Hurst, OF Norfolk. Va, he
said
The witness also testified that. in ad-
dition to prosecutions, the department
Of Investigations has broken" large
number of officers, meaning that they
could not get jobs after their dismissal
by the board for offenses against the
government. He said there we're at
least twenty-five captains now ashore
in New York because of the activities
of his department. He also said that
men guilty OF drunkenness aboard ship
were discharged.
81 have opposed accepting restitution
from many firms in the hope that even
tualy we will be in position to insti-
tute prosecutions and obtain convic-
tons. We have one case up for trial
soon which may go to the Supreme
Court, and which, if decided in our
favor, will enable us to 60 after many
of the offenders"
Want Big Fish" First
In reply to a question by Congress
man Walsh Mt this point Mr.. Meehan
said that should the court decide in
favor Of the government there would
be hundreds of prosecutions.
I'VE don't want to press the petty
cases until we are in position to get
the big fish," said Mr. Meehan.
How many Of the companies dealing
with the government were guilty of il
legal and fraudulent practices ?" asked
Chairman Walsh.
"Well, practically all of them was
Mr.. Meehan's quick and emphatic re-
ply.
In answer to another question from
Chairman Walsh Mr.. Meehan said that
auditors were not bonded, but all en-
ployees who handled money were re-
quired to furnish bond. He said that
all district auditors should have been
bonded because they handled huge
sums and some of them rather loosely
lie cited a case wherein an auditor re-
,eivcd checks in his own name which
should have been made out to the gov
ernmcnt. In this case, which occurred
at Bath, Me, the auditor mixed the
funds with his own and was found to
be short several thousands OF dollars
Testifying on the matter of corrup-
ton of Shipping Board employees in
the purchase Of supplies for ships and
collusion between them and ship chand-
lers, Mr.. Meehon cited a case in which
district agent Of the board in Bos-
ton was found to be a stockholder in
ship chandler firm which overcharged
lUe government Tor SuUplleS.
A Captain Crawley, Mr.. Meehan said
admitted being a stockhoIder in the
Flitter-Atwood Company, of Boston
This case, Mr.. Mcehan said, was han
died by the Department of Justice, but
his own agents discovered that the
ship chambers had credited Crowley
with dividends amounting to $4,000
on profits made during the time that he
was division agent at that port. The
witness declared that although, in his
opinion, Crawley could have been in
dcted on several counts, the case
han said that Congressman Tague had
interceded in his behalf.
Accused Official Not Citizen
Mr.. Meehans testimony of tho $780,
600 repair bill on ship worth less
than $4,000 was mentioned in con-
necton with his description of the ac-
tivitics Of d. 7. Williams, district man
ager of the Shipping Board stationed
at Jacksonville at one time but now
al New Orleans. Mr.. Meehan held
Williams responsible for the extraor-
dinary repair bill run up by the afore-
mentioned ship.
"Mr. Williams is not an American
citizen" said Mr.. Meehan. "and he is
not fit man to work for the Shipping
Board. At one time Mr.. Williams en-
ployed a bunch of emergency fleet in
spcctors to work for him personally
have recommended his dismissal. but
for some reason he is still on the job
Another man mentioned by Mr.. Nee
han is one named Haley, who, the wiz
ness said, worked under Williams, who
was subsequently commanded to dis
charge him instead OF obeying orders,
Williams kept Haley on the pay roll Mr.
Mechan said, and sent him on the road.
In Syracuse Haley paid fine of 50 900
after being found guilty Of bribery and
other offenses, Mr.. Meehan said.
Mr.. Mcehan will resume his testi