The Washington herald., 1920-11-14
Influenced Millions Of Dol
lars Poured Into Hands Of
Charles W. Morse"
AMAZING TALE OF PELF
Meehan Tells Of Investigat-
ing 2, 400 Cases Involv-
ing Fraud and Graft.


Secretary Of the Treasury. was mem
toned yesterday before the Con-
gressionaI committee investigating
United States Shipping Board In
connection with the flood Of public
money (nore than s1S.ooo.OoO) that
poured from the Shipping Board into
the Golfers OF Charles W. Morse
Concluding the amazing story OF
his investigation Of 2.4oo cases OF
fraud and graft. John T. Meehan.
deputy chief of the Shipping Board 8
division Of investigation, was asked
by Representative Foster. of Ohio.
a member of the committee:
WAS politics injected into the
board. and did this result in waste
or loss of public money!"
Mr. Meehan spoke of the interest
of Representatives and Senators In
claims OF their constituents and
other matters. Then he puffed At
his cigarette a moment and con-
tinued:
There has been considerable
criticism by employees of the Fleet
Corporation. men settling contracts,
etc, Of the activities of william e..
McAdoo. former Secretary of the
Treasury, after he left the Cabinet
While don't believe either Judge
Payne (John Barton Payne, former
chairman of the board) or Admiral
Benson (present chairman) would
De Influenced by the injection of a
man OF Mr.. McAdoo's standing.
know there was a feeling in the
claims department and elsewhere
that Charles w. Morse was getting
favors than he would receive IL Nc
Adoo had not been his attorney.
Within two weeks of McAdoo's
resignation from the Cabinet, his
secretary, w. J. Martin. appeared
before the board as counsel for the
Virginia Shipbuilding corporation.
one of the Morse companies. Martin
later became treasurer Of the Vir-
ginia Shipbuilding Corporation. Nc
Adoo became counsel for Morse and
represented him before the board"
rs brother of Comptroller of
the Currency Williams connected
with the Morse interests" Foster
asked.
10 not KNOW.
Are there any other cases where
the boards work was hampered
occur to your
I do not wish to be misunder-
stood to say McAdoo hampered the
boards operations. I merely state
there was a feeling among employees
of the board that Charles W. Morse
was being given more liberal treat
ment because McAdoo was his at
torney."
Previously Meehan had told of a
trip he made to Alexandria, Va, to
examine matters connected with the
accounts Of the Virginia ShipbuiId-
Ing Corporation He obtained a
confession from John Rhinehardt,
feet corporation auditor. stationed
at the Morse plant.
The witness continued:
-Rhinehardt confessed he had re-
eeired money from the corporation
with the knowledge of Benjamin W.
Morse. Charles w. Morse's son. He
also confessed to having signed
blank vouchers for hundreds of
thousands of dollars against the
Emergency Fleet Corporation. Also
he confessed he had approved bills
for building materials which were
to be used at the ship yard. but
which actually went into a housing
project known as Rosemont, in
which Charles w. Morse and his as
sociates were Interested"
Mr.. Meehan said he had turned
the crooked officials confession
over to the Department of Justice,
but 50 far as he knows no indict-
ments have been found or other
action taken.
May Call on McAdoo.
As result Of this testimony and
other information in the possession
of the committee it is reported to-
night that both McAdoo and Morse
will be called as witnesses. Morse
VIII be asked specifically how many
war baby" companies were organ
lied by him or his friends, and
what favors. in money or otherwise.
were given him by the Shipping
Board and Emergency Fleet Cor
poration.
The name OF Joseph p. Tumulty,
secretary TO President Wilson, was
mentioned by Meehan in connection
WIN q 70 one Ed
ward A. AcCann by Capt. Charles
Yates. manager of the division of
operations in New York. Mccain,
according to Meehan, was told he
could draw his $4,000 salary, but
he need not come around"
Ncehan said he had read in the
files letter purporting to be from
Secretary Tumulty personally
vouching for McCann and hoping
he would be given favorable atten-
tion."
A number OF men were discharged
for drawing salary without render
ing any service, said the witness,
among them a brother of Gov. Ed
ward L Edwards Of New Jersey.
Meehan came before the commit
tee as the real man with the
goods" the man who developed cases
Of graft and larceny, extending
from petty "cumshaw" (the sailor
mans name for rake-off) to deals
involving many millions of dollars,
-Meehan is 40 and has had wide ex-
perience as a newspaper correspond
ent- Without notes, he painted an
amazing picture Of larceny, mall
feasance in office on the part of
officials and other crimes,