The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-13
SHIPPING BOARD
OFFICIAL GIVES
GRAFT FIGURES
Tells Of $1,5OO,OO0 Deal
Launched by Criminal in
High L. S. Office.
WIG. M'ADOO MENTIONED
Admits Representing Morse
Interests Shortly After
Leaving Cabinet.
HE DENIES IMPROPERLY
Building Materials Bought for
Ships Actually Went to
Morse Houses.
HE DENIES IMPROPERLY

a confidence man with criminal
record extending throughout the coun-
try and covering period OF twenty
years was At one time chief traffic
engineer of the Emergency Fleet Cor
poration, according to testimony given
yesterday before the Walsh committee
by ]. T. Meehan. deputy chief of the
department of investigation of the
United States Shipping Board.
The ex-convict, one of whose thirty
names was L. S. Kiger. was n party
with J. X. Fawcett, formerly head of
the lumber department OF the Emer-
gency Fleet Corporation. to proposed
lumber deal, which. had il been con-
summated. would have defrauded the
Government of s1.50o.o00. Kiger was
man Of distinguished personal ap-
pearance, Meehan testified, and In
gratiated himself with nerve" Nee
han said that kiger had a national
was wanted in many cities in connec-
ton With various schemes to defraud
Full Confession Obtained.
Fawcett, according to Meehan, made
full confession OF his part in the pro-
posed transaction and was ousted from
his job. Kiger already had been fired
when his criminal record was unearthed
but he still was being trailed by Nee
hans men when the lumber deal was
discovered
The deal involved the sale Of 139, ,000,-
900 feet OF lumber in July, 1919. A bid
of s3.900.000 for the lumber was looked
into and IL was discovered that the Gov
Lernment actually would have received
only $2.400. 600. The bid was made by
Harris Brothers, Inc, Chicago wreck
ing concern. Meehsn said the Harris
firm formed q fictitious holding corpo-
ration known as the Girafd Importing
and Exporting Company to carry out the
fraud. In return for awarding the sale
to the Harris people, with which Kiger
was connected. Fawcett was TO receive
$4,000, according TO AIeehan's testi-
mony. The scheme. Meehan snid. was
for Fawcett, Kiger and an assistant gem
eral auditor OF the Emergency Fleet Cor
.poratlon named Mckinley TO export the
lumber under the name of the fictitious
holding company.
The bid made by Iosris Brothers,
Meehan said. was camouflaged by means
OF O certified check for $500, 900 TO indi-
cate a bid of ss.s00,000. although the bid
actually was only S2.400,0O0. The
duplicity was discovered by the use OF
detectaphones and shadows. Meehan
sa.d. Kiger was constantly watched
and his relations with Fawcett were
discovered.
AT the same time the Post Office De-
partment also was searching for Klger
on a mail fraud charge. Its inspectors
assumed that Meehan's detectives had
been employed to watch them. The
tangle was Strengthened out when Kiger
was taken into custody by Post Office
inspectors on the very day that Meehan
arrived In New York to arrest him.
Meehan said that Klger is at present
out on bail and that Fawcott has a job
selling oil to churches for sanctuary
purposes.
The lumber finally was sold 20 the
American Lumber Sales Company al a
price which brought the Government
N.eoo,o 600 more than the Harris bid. Even
this sale did not clear the situation.
Meehan said. because he understood the
American Lumber Sales Company was
acting for Harris Brothers. Later. how
ever, Il obtained Independent capital and
the lumber was disposed of under fairly
satisfactory circumstances.