The Washington herald., 1920-11-26
Shipbuilder Says Payment
Was for Advice from
Washington Banker.
$4,000 WAS RETURNED
Providence Engineering Co
Had No Dealings With
Boiling, Claim.

Denial that Tucker X. Sands,
former vice president and cashier
of the Commercial National Bank of
Washington, d. c., had aided the
Downey Shipbuilding Corporation in
procuring a shipbuilding contract
from the Emergency Fleet Corpora
ton, or that money was paid to
Sands or any official Of the Emer-
gency Fleet Corporation for obtain
ing such a contract, was made yes
terday by Wallace Downey. presi-
dent-manager, and other officials of
the Downey Company. in a letter
to the Select Congressional Commit
tee investigating shipping board
operations.
A second letter. written by Dow
ney. in behalf of the Providence
Engineering Corporation, which he
controls, admits the payment OF
$4,000 to Sands. of which $4,000
was returned later. for services rem
dcred in investigating the RESPONSE
bility OF the engineering corpora
tion and for underwriting credit
stipulated by the Fleet Corporation
upon the awarding of a contract
for the construction of ten tug
boats.
Told OF $4,000 Paymeat.
Sands in his testimony before the
Congressional committee, said that
the Downey Shipbuilding Corpora
IL.
Richard Wilmer Boiling. brother-in-
law of President Wilson. and to Of
ficials of the Emergency Fleet Cor
poration to secure contract.
In denying this charge officials OF
the Downey company claimed that
the contract for the construction of
ten steel ships was signed months
before Wallace Downey met Sands.
So, 900. 900 on this contract although
eleven months ago.
Dow.ey's EIpIa.afien.
In explaining the payment of s4o,-
900 to Sands for services rendered
the Providence Engineering Com
pany. Downey, as principal owner
of this concern, said in his letter to
the committee:
In the month of March. 1917, the
Emergency Fleet Corporation was
receiving bids for building ocean
going tugs. The Providence Engi-
neering Corporation, with other cor
porations, submitted its bid to build
ten of the tugs. The Emergency
Fleet Corporation Investigated the
capacity and facilities of the plant
and the personnel Of its operating
force, and awarded a contract to the
Providence Engineering Corporation
to build ten of the tugs at $2.S50,0Oo,
for ten tugs. provided the engineer
ing corporation established working
capital in addition to its existing
capital.
THE bid Of the Providence Engi-
ueering Corporation. / am informed,
contained the lowest price Of all the
bids submitted to the Emergency
Fleet Corporation.
Conferred With Sands.
"A friend of Tucker E. Sands, then
the vice president and cashier of
the Commercial National Bank of
Washington, d. c., conferred with
M. Sands in regard to underwriting
this credit. and vouching for the re-
sponsibility of the Providence Enei-
neering Corporation. This was the
first connection that Sands had with
this contract, which had already
been awarded subject to providing
the required guarantees and credits"
After concluding negotiations, ac-
cording to Downey, Sands investi-
gated the plant, assets. facilities
and responsibilities OF the Provi-
dence concern. and agreed to es-
tablish the credit required, on the
stipulation that $4,000 be paid him
for making the investigation, filing
reports and underwriting the credit,
If the corporation would maintain
its principal bank account with his
Bank. 'i-
Gave Sands -Four Notes.
After the contract had been exec
uted and delivered, as a result of
the negotiations with Sands, Dow
ney said. he sent. the Washington
man four personal notes for $40, 900
each, running over a period of fit
teen months.
Later Sands severed. his connec-
tion with the Commercial National
Bank. Downey said, without having
made arrangements for continuance
of the credit.
AS soon as found that the ar
rangements made by Mr.. Sands were
only partially fulfilled. applied to
him for reduction of any Indebted
ness to him." Downey said. He re-
turned the last note and paid $4,000,
thereby reducing the moneys ac-
tually paid him to SIS, 900.
This money was paid to Mr..
Sands as banker and responsible
business man of Washington. Never,
in any manner whatever, did Mr.
Sands intimate to me that any
part Of these funds was to be paid
by him to any shipping, board Of