The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-13
SHIPPING OFFICIAL
GIVES GRAFT DATA
Continued from FIRST Page.

any way"
The names OF Charles W. Morse and
his son. Ben Morse. figured in Meehan's
testimony at the afternoon session. Nee
han told of a confession made by John
Rhinehardt, at ore time auditor Of the
Emergency Fleet Corporation. stationed
at the plant of the Virginia Shipbu.lding
Corporation at Alexandria, Va. Meehan
said the auditor admitted ro ceivlng money
from the company with the knowledge OF
Ben Morse. Rhinehardt confessed ac-
cording to the witness, that he signed
blank vouchers for hundreds of thousands
OF dollars against the Emergency Fleet
Corporation and approved bills for build
ing materials which were to be used at
the shipyards but which actually went
into housing project known as Rose
mont" in which Charles w. Morse and
his associates were interested. This
case. Meehan said. was turned over TO
the Department of Justice. but so far as
he knew no indictments have been found
Answering a question from Represen-
tative Joseph Walsh. chairman OF the
committee. Meehan said that auditors
were not bonded. District auditors. he
aid, should be placed under bond be
cause they handle large sums of money
nd sometimes do i very loosely.
From Meehans testimony IL appears
.IllL y dtutltSS ana ONeTCN aTEeS are CpIil-
mon. He told of the firm of Richardson
Co OF Charleston. S. c.. which adj
mitted payment OF gratuities to masters,
engineers and stewards. and offered
10 refund $4,000 TO the Government.
When the books were submitted for
auditing the embargo against the COM
pany was lifted. Meehan said. but they
are getting very little Government busi-
ness now.
Meehan said that Hurst & Co. of
Norfolk paid out gratuities amounting
to $4,000 in one year. This money was
charged against the Government and the
payments listed as entertainment" The
Sparrow Point Stores Company. sub
sidiary OF the Bethlehem Shipbuilding
Company. paid hundreds OF gratuities
ranging from $40 to 500 each.
Graft in Fuel OIL.
Meehan gave a detailed account OF the
circumstances under which Capt Ru-
pert Rye, in command OF the Shipping
Board vessel Rio, took SO 900 graft on
a purchase of fuel oil in Rio de Janeiro
and split it with Raymond Bowman,
chief engineer, and one Hanllinson then
an employee of the Standard Oil Com
pany OF Brazil. Later Rye. according
to Meehan while out on $4,000 bail in
the Mount Rainier, a schooner belong
ing to Castor, Williams & Wigmore. and
fed the country. Rye left Kew West for
Buenos Aires September Z. Meehan said.
accompanied by his wife and fourteen
trunks. Every South American port is
being watched for Rye. Meehan said,
but he has not yet been reported.
Meehan said that the fuel incident
was not the only one open to question
Ia, too q l.
Rio He Said he had been informed by
sydney Alderman. steward of the Rio,
that the ship took on enough beef TO last
nine months and threw most Of it over
board
While In Rio de Janeiro Meehan said.
the capt7in of the Rio and his chief en-
gineer. Bowman, had repairs made by a
man named II. NJ. Miller described as
"a notorious crook who has accumu-
lated several million dollars in the last
two or three years and who was one of
those In on the fuel graft. Rye and
Bowman signed vouchers for the re-
pairs and submitted a bill to the opera
tors. the Nation Shipping Corpora ton
Of New York. II $1,000. A fair charge
for the repairs. Meehan said, would be
between $4,000 and $4,000.
'4rv rSo the Governhlent by this over
charge and the fuel graft lost 900 on
this one voyage of the Rio?" asked
Chairman Walsh.
That's about right" said Meohan
eohan told the com~'itt~e that he
aske Judge Fostn In the Federal Court
he to declare Rye's 81 bal forfeited
and pro- os d that the Navy Department
send n destroyer after tn Mount Rar'er
Judge Foster however co1tlnu'd the
bail until December Z Bowman and
Hankinson plea Fed iltv and wer SEN
fenced to one day each Meehan said
he was satisfied with the tcome of
Hantinson's cHse MS It was he who.
bothered by his conc iencn. related the
whole thing to the Department of In
vestigation.
THE case is the most glaring that
has come to nv att ntion." said Nee
han. "I don't think we have had a
worse one"
Representative Foster read list Of
names to Moehqn AMI asked if they had
heen IN "estiP d. In each instance
Meohan said they h7d been under sus-
ricion for one aso7 or an Their. D. r.
W'll ans. at 'presrrt strict manager
OF the Shipping Board. now stationed
at New Orleans was mentioned. Nee
han said he made a thorough investiga-
ton in WI liams's case and recon m ,ndcd
his dismissal from the service. No ac-
to Meehan. Is not an American citizen
AM is incompetent.
"IIe Is rot n FIT man n work for
the Shipping Beard" fnid Meehan.
Their, are a lot of undesirable things
about him. At one tive he hire a
b nch of emergency feet inspectors to
work fo~ hin personally a chip which
was given a trial trip and tho aid UP
for repairs whic' cost fro-0 $40. 900 to
$4,000. The repairs made up to six
months ago aggregated 100000 The
vessel could not be sold tod for more
thar $4,000.
Meehan ment oned man named
Hal"y. who. he Sid wa Al ex-con-
vict. who worked under Wi'liams He
was ordered dlecha-Ee1. bu' W'i'iams
kent him OF IN p"yr-l and rent him on
the road. HALEY wa foun guilty Of
bribery and other offences In Syracuse.
Meehan said.
y cory vas read o. what purported
to be a letter from Joseph f. Tumulty
secretary to President Wilson. TO Capt.
Yates personally vouching for Mccain
and expressing the hope that he would
be given favorable attention"