The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-21

Tor loan. Sands said he got loan
from the Commercial National Bank
Tor 100000 for Downey, and the amount
was left on deposit there and later
transferred to the savings account.
Sands said he expected payment not
n rotes but in cash. and that he
actually got $4,000 in all. He said that
he did not believe Boiling ever got any
or the money, because he would not
take it. Boiling. he said, had expected
at one time to get it,
At this point Sands said the photo
static statement was right when 1t said
that Boiling was to get $3.50 OF the
amount realized by discounting the
notes. He said Boiling became wary
and refused to take the balance. Sands
. said he had advanced to Boiling some
1850, but 1t was in the nature of
loan. He had collected about $500 OF
this, he said, but never expected to coll
lect the balance, as there was no note
and he supposed the money was to be
part payment of Bollings share. He
Insisted that he could not remember
having told Boiling he was TO get
share but that he believed 1t was in
Bolling's mind"
Then Sands said that he did not think
Boiling ever got cent from ANYBODY
for aiding anybody to get contract
with the Shipping Board In the next
sentence he stuck to his statement that
there was an understanding that Boiling
was to get a share.
At first Sands said that the $500 was
a personal loan to Boiling; later he said
II was part payment for Bolling's share
of the bride money. He said he carried
Il as a loan on his books because he
didn't think It would look right
"Don't YOU know" asked Mr.. Walsh.
shat this payment was in connection
with another transaction entirely and
had nothing whatever to do with the
Shippig Board?"
"I can't say" replied the witness
but you're not sure even now?'
"No, I'm not sure.
Representative Patrick H. Kelley tried
10 make Sands specify what the various
parties to the alleged bribery were sup
posed TO do. Sands admitted that Boil
ling did not agree to see or talk TO any
body to secure the contracts for Downey
and that he did not know what either
Boiling or Sisler We're to do.
Boiling In Minor Position.
"You are business man and you tell
me thatT' asked Mr.. Kelley
The witness was uncertain again. He
said he didn't think Downey knew what
the money was to be used for. or that 1t
was TO be spent in corrupting Shipping
Board officials or employees Later
Sands ventured the opinion that Cranor
had told Downey what was to be done
to earn the money.
Representative Kelley reminded Sands
that at the time of the alleged bribe
Boiling held a minor clerkship in the
treasurer's department of the Shipping
Board and had absolutely nothing to do
with the letting of ship construction con-
tracts. -
Don't you believe. Mr.. Sands he
asked. that the fact that Mr.. Boiling Is
related TO the President has caused
many persons to use his name in way
without Justification, and made him par
ticularly liable to such accusations
Eyes, I think that is quite likely" re-
piled Sands.
Sands said that Ssler~was paid $4,000
out of the proceeds OF one Of the notes
and received a further loan of $4,000
from Sands personally This note has
not been paid. Sands said, and no effort
has been made to discount 1t. He said
he was not sure what Sisters duties In
connection with the Downey contract
were to be, though he presumed that
since applications for contracts were
handled by his department he could aid
or retard them.
''Did the fact that Mr.. Boiling had re-
fused to intercede for you with the Dis
trtct Attorney of the District Of Column
bia have anything to do with your bring
ing his name in hereT' asked Represent
alive Kelley.
Mr.. Sands denied this and insisted
that he and Boiling were friends. he
said he regretted that Bolling's name
had ever been brought into the case.
!, The committee adjourned until 10
o'clock next Friday morning.
Denial From Downey Co.
The statements that the Downey Ship
building Corporation was connected with
a $4,000 bride drew an answer last
night from Wallace Downey. president,
and A. A. Cannon, treasurer of the cor
poration, and II. c. Hunter. its counsel.
Their reply. in the form Of telegram
to Representative Walsh, chairman OF
the committee. denied the truth OF the
bribe story and requested that they be
subppnaed and permitted to testify i'm
mediately.
1--WE the unders gned officials of the
Downey Shipbuilding Corporation OF New
York note in the press reports this
afternoon that testimony was given be-
fore your committee to the effect that
the Downey Shipbuildng Corporation
paid a bride for procuring a contract
from the United States Shipping Board
Emergency Fleet Corporation. We now
notify you that these statements are
absolutely false and hereby certify that
the Downey Shipbuildlng Corporation
did not pay any bride OF any kind OF
amount whatever to any party or parties
for procuring a contract.
I'VE hereby respectfully request you