The Washington times., 1920-11-26
.SH|PP|NGBR|BE.
CALLED''L0AN"
Former D. C. Banker Testifies
About Payments in Which
Boiling Is Named.
BY FLOYD MacGRIFF,
International News Service.

NEW YORK, Nov. 26.-The Walsh
Congressional committee investigat-
ing the United States Shipping
Board began today to probe the SEN
sational charge made last week by
Tucker X. Sands, former Washing
ton banker, that a $40, 900 bribe had
been offered by the Wallace Downey
Shipbuilding Corporation TO four
men, including X. Wilmer Boiling,
brother -in-law OF President Wilson.
BANK CASHIER TEsTIFIES.
Edward S. Malmar, cashier of the
Corn Exchange Bank, New York, who
was the first witness, told the COM
mittee that two notes, one for $lO.3OO
and another for $l0600, signed by
Wallace Downey, had passed through
the Corn Exchange Bank.
The witness was not asked to whom
these notes were made payable. but
no was requested to furnish data
showing loans made by the Corn Ex-
change Bank TO the Downcy Ship
building Corporation from March i,
1917. to March ]. 1919. He also was
asked to supply the committee with
records showing the monthly status
of the Downey account.
Sands charge was that the al
legged $4,000 bribe ito get fat
shipbuilding contract" was offered to
him by Boiling and Lester Sisler.
former secretary OF the Shipping
Board.
Jacob Nlemann, assistant cashier
Of the Hanover National Bank, who
was next called to the stand, testi-
fed that the two Downey notes men,
toned by Malmar. also passed
through his bank, which, he added,
acted as an agent for the Tacoma
Park National Bank. OF Washington,
d c. Both Mailman and Nieman said
no official of any branch of the
Government had any time made any
inquiry at either bank in connection
with these two notes.
SANDS PRODUCES NOTE.
Tucker Sands. who then resumed
his testimony, introduced note
dated Washington. May ]. 1919. due
within ninety days, for $4,000 to be
paid by II. d. Mephan to the CONNER
cial National Bank. Washington.
Sands said Mephan was a friend of
Ssler. This note ws signed by c. L.
Gray, of Kansas iCty. Mo-. on the re-
verse side was notation OF $5I6,
above the signatures of OF H. ID.
Mepham and Lester Sisler."
Chairman Walso tried to find out
what connection there was between
this note and the $4,000 which Sands
testified he had paid Sisler. He de-
clared this note was given him fol-
lowing the payment to Sisler.
"As far as this note goes, there Is
not a word or a mark upon 1t to
show that Sisler got reward for
obtaining a contract for the Downey
Shipbuilding Corporation, is there?'
asked Chairman Walsh.
"No, there is not" Sands admitted.
CONTROVERSY WITH DOwNEY.
"Did you have any controversy
with Wallace Downey?
Yes" replied the witness. "The
first on the ground which the $4,000
was given, and second. that the
amount of IL was excessive"
Sands said he had dispute with
Downey at Washington as TO what
the $40 900 was to be paid for.
"Mr. Downey wanted this to be
charged as a fee for securing financial
Accommodations" Sands testified. But
| told him | understood IT was for
securing q contract
"Did Mr.. Downcy know how this
money was TO be dividedS" asked
Walsh.
II don't think So"
did you mention Mr.. Bollin's
name?"
mo, sir"
"Or Mr.. Sisler's?"
mo, SIR"