The Washington times., 1920-11-26
DOWNEY GIVES
LIE TO SANDS
ShipbuiIder Asserts $4,000
rendered to Banker Was
Payment for Advice.

Denial that Tucker X. Sands, for
mer vice president and cashier OF
the Commercial National Bank. had
aided the Downey Shipbuilding Cor
poration in procuring a shipbuilding
contract from the Emergency Fleet
Corporation. or that money was paid
to Sands or any official Of the Emer-
gency Fleet Corporation for obtain
ing such a contract, is made by
Wallace Downey, president-manager.
and other officials Of the Downey
Company, in a letter to the select
Congressional committee investigat-
ing Shipping Board operations.
$4,000 WAS RETURNED.
A second letter. written by Downey.
In behalf of the Providence Engineer
ing Corporation, which he controls,
admits the payment of $4,000 to
Sands of which $4,000 was returned
later for services rendered In inves-
tiRating the responsibility OF the en-
cheering corporation and Tor under
writing credit stipulated by the Fleet
Corporation upon the awarding OF
contract for the construction OF ten
tug boats.
Sands in his testimony before the
Congressional Committee. said that
the Downey Shipbuilding Corporation
had paid $4,000 to him. to Richard
Wilmer Boiling, brother-in-law or
President Wilson. and to officials OF
the Emergency Fleet Corporation to
secure a contract
In denying this charge officials of
the Downey company claimed that
the contract for the construction OF
ten steel ships was signed months
be fore Wallace Downey met Sands.
and that the Government still owes
50, 900, 900 on this contract although
the last ship was delivered about
eleven months ago.
In explaining the payment OF $40
900 to Sands for services rendered
the Providence Engineering Company.
Downey, as principal owner OF this
concern. said in his letter to the
committee:
I'm the month of March, 1917. the
Emergency Fleet Corporation was re-
ceiving bids for building ocean
going tugs. The Providence Engi-
ncering 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 it's operating force. and
awarded a contract to the providence
Engineering Corporation to build ten
of the tugs at $2.S5O,OOO. for ten
tugs, provided the engineering cor
poration established working capital
nxr,, Ina mi IN
WAS LOWEST PRICE.
1.-THE bid of the Providence Engi-
neering Cooperation. 1 am informed.
contained the lowest price of all the
bids submitted to the Emergency
Fleet Corporation.
"a friend of Tucker L. Sands, then
the vice president and cashier of the
Commercial National Bank of WASH
ington, d. c., conferred with Mr..
Sands in regard to underwriting this
credit, and vouching :pr the response
bility of the Providence Engineering
Corporation. This was the first con-
nection that Sands had with this con
tract, which had already been
awarded subject to providing the re-
quired guarantees and credits
GAVE COMPANY CREDIT.
After concluding negotiations, &C
cording to Downey, Sands investi-
gated the plant, assets, facilities. and
responsibilities of tie Providence
concern. and agreed to establish the
credit required, on the stipulation
that $4,000 be paid him for making
the investigation, filing reports ana
underwriting the credit, If the cor
poration would maintain it's principal
bank account with his bank.
After the contract had been exc
cuted and delivered, as a result Of the
negotiations with Sands, Downey
said, he sent the Washington man
four personal notes for $4,000 each.
running over period of fifteen
months.
NOTE WAS RETURNED.
Later Sands severed his competition
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 we're
only partially fulfilled, I applied to
him for a reduction of any indebted
ness to him" Downey said. "He re-
turned the last note and paid $4,000.
thereby reducing the moneys actually
paid him to $4,000.
"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 officials"