New-York tribune., 1920-11-13
Former Cabinet Officer
Connected With Ship
Company as Attorney;
Ex-Employee an Official
2.4O0 Fraud Cases
Under Scrutiny
Investigator Calls All
Firms Crooked; Block
S1,50O,0OO Steal;
Get ''Big Fish, He Says

Further testimony SuDSCGntlatlnR Cne
charges Of graft, waste and corruption
in the operations OF the United States
Shipping Board was offered yesterday
before the Congressional committee in
the inquiry into allegations >contained
IN special report submitted by two
Of its investigators. The hearing is
being held in the Federal Building,
this city.
John 7. Meehan, deputy chief of the
Division of Investigation of the United
States Shipping Beard, was questioned.
Mr.. Meehan supplied great deal Of
the material upon which A. NJ. Fisher
ard j. F. Richardson, the committee
Investigators, made their report.
Occupying the stand for more than
five hours, Mr. Meehan testified to
many instances of fraud. conspiracy to
defraud and graft in dealings between
the government and contractors, ship
operators and supply agents, and
ranging in sums from ten to hundreds
Of thousands Of dollars.
He said that there were on the list
Of the department of investigation
2,4Oo cases still being investigated,
many OF which, he believed, would re-
suit in criminal prosecutions. Cases
Of petty graft, he said, were so numer-
Gus that he would consider it inadvis-
able to press prosecutions in connection
With them until men higher up had
i-n no L.
he included men occupying positions of
Importance in the Shipping board, some
q whom have lef. its employ or have
teen dismissed and others of whom
9tlll are III the employ Of the board.
Morse and McAdoo Mentioned
The names of Charles W. Morse and
William Gibbs McAdoo, former Secre-
tary Of the Treasury and counsel for
Mr. Morse, were brought into the in
quiry by Mr.. Meehan in connection
VII tho discussion *of political in
huencc in the operations of the Shin
pm noa~,..
Mr. Morse's name appeared in the
tS.esNmony as the head of the Virginia
Shipbu'lding Corporation. of Alexan.
drla, Va. which figured in the alleged
ir4ud Of Philip Rhinehardt, an auditor
employed at the plant by the Emer-
-ti.f. q lNenar t.
Mr. Meehan said, confessed that the
~ -:a' ia p t I'M n n w.
with the knowledge Of Ben Morse, Mr..
worse son, fer signing blank vouch-
ers tor the Emergency Fleet Corpora-
non to the extent OF hundreds of thou
'ahas OF dollars for lumber and other
nay Hals which We're to be used osten-
s.oly at the shipping plant but which.
HI 'eallty, were diverted to private
housing operations at Rosemont.
was Rhinehardt ever indicted ?"
asked Congressman Walsh, chairman
OF the committee.
mo. replied Meehan. "We turned
over me evidence in his case to the
department. OF Justice, but l do not
KNOW What has become Of it,
Ar. Meehan said that following his
resignation IS Secretary of the Treas
Charles W. Morse. and added:
The feeling has been that Mr.. Morse
Noalc not be getting as much consider
"uoh ana more ready allowance of
money were 1t not for the appearance
Of Mr.. McAdoo in his behalf as coun-
SELL about two weeks after his resig-
nation as Secretary Of the Treasury -
McAdoo's Secretary Made Official
MI 9ieehan asserted also that stimuli
taneousy with Mir. McAdoo's appear
ance as counsel for Morse, W. j. Mar
ln' secretary to McAdoo, became
treasurer Of Morses company
DON'T want the impression to GO
out' however" explained Mr. Meehan,
tnat McAdoo ever interfered with OF
hanpered our work"
The name of Joseph P. Tumulty
secretary to President Wilson. also was
mentioned by Mr.. Moehan, in present
'ns an affidavit alleged to have been
made ny man named Edward McCann
charging that Captain Yates. former
managing agent OF the board at New
@ ORR had offered him a position a,
90,ooo year simply to draw his
Sa,ary without appearing at the Office
MI Moehan testified that McCanr
Aad applied for position in the pur
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