The Washington times., 1920-11-30
|TOOKNOBR|BE,
SAYS BOILING
Presidents Brother-in r-in-law, on
Stand in Quiz, Denies
Charges by Sands.
Continued from First Page.)

CONTINUED from First Pase.)
transact ton with Mr.. T. X. Sands,
from January I. 1918. TO the present
date, SO that the committee may
understand fully the nature of these
transactions. IL Is necessary that
give you q history also OF my deal
ings with Mr.. Sands prior to 1913.
II have known Mr.. Sands since
about 1913. From 1914 had done
all my banking with the institution
with which he was connected.
"In the spring of 1910 Mr.. Sands
awarded n contract to me and an as
sociate, Mr.. William Todd OF Wash
ington. ID. c., for the construction
OF a house at $4,000. The agreement
that had with my associate was
that i was to attend to all the hnanc-
ing. Due to many changes made by
Mr.. and Mrs. Sands during the con-
struction on this house. there was an
extra charge covering the. cost OF
such changes, which he had agreed
to pay. and at the time OF hnal SET
tlement. about November, 1915 both
Mr.. and Mrs. Sands took exception to
the amount charged for this extra
work.
MET BY APPOINTMENT.
my associate and l met by appoint
ment Mr.. and Mrs. Sands in their
home In November. 1916, for the pur-
pose of making a final settlement
After a great deal of talk on the
subject OF the charge for extras. ]
volunteered to cancel my share OF
this charge, which figure H6oooo)
represented most OF the proht that l
had expected to make on the entire
transaction, because Of their unpleas-
ant attitude, but the understanding
was that my associate was to be paid
his share for these extras H6oo.oO)
In full.
"I did this because ! had built
home for myself on the lot adjoining
Mr.. Sands, and did not want situn-
ton to develop which would have In
any way caused disagreeablc feelings
on the part of neighbors. Mr.. Sands
agreed to this settlement and II was
made accordingly. He gave me his
note for 5000. which l indorsed and
discounted in the Commercial Ma
tional Bank, of which institution he
was then vice president However
short while afterward Mr.. Sands told
me that he did not want me to lose
any of my commissions for building
the house, and that he had accepted
this reduction only because his wife
was very much worried because the
house should have cost more thah
they had originally planned. and that
he intended paying me the addltlohai
$500 above referred to-
From time to time Mr.. Sands cur
tailed the note for $4,000. until by the
summer Of 1918 he had reduced II 10
about $4,000.
early in 1913 Mr. Sands sent a
Mr. CranOr to see me in regard 10
some machinery. which was TO De
used in connection with construction
of vessels. Mr.. Cranor told me thar
the machinery in question was pend
ing rolls" and was to have been
shipped 10 his company from the iac-
tory. but at the last minute some
other company succeeded in having
the order changed. and that this ma
hinery would be diverted to them
that , great injustice was being done
To his. Mr.. Cranor's company, ana
II would mean great delay, as they
were ready to put plates on several
hulls, but could not do so without the
bending rolls.
Il knew nothing about the con-
struction division. as l was IN the
division of operations, 30. in the pres
ence of Mr.. Cranor, I called up MI
Lester Sisler. who was then Secre-
tary Of the Shipping Board, and eX.
planned the matter to him. lie saio
he would look into il. and SUB
seoucntly told me that he found upon
inquiry that the rolls had been prom.
ised to Mr. Cranor's company, ana
would be shipped to them.
WOULD ACCEPT NOTHING.
"A short time after this Mr.. Sands
told me that ne had made, or would
make, one thousand dollars in con-
nection with this transaction-though
he now states that he has no recol-
lection of the matter--and said he
was going to take care OF me-
told him that l would accept nothing.
He then mentioned the six hundred
dollars which he still owed me IN
connection with the changes made in
his house, saying that he had not
forgotten it, and would pay II.
~ gave no thought as to what Mr..
Sands relationship was TO the prin-
cipaI, but looked upon him as the
vice president OF a large bank. and
a man who was justly indebted to
me. therefore. told him that |
would be glad TO have him pay what
he owed me, but that it could In no
way be connected with fees or com
missions involving Government work
and this he clearly understood.
Upon my request he paid me sub
seauently the six hundred dollars. as
follows: February IS. 1918; $500
June 26, 1918, 5000. and August {
1918, 500. / have no knowledge OF
where this money paid me by Mr..
Sands came from.
"Mr. Sands also made me loan
OF three hundred dollars on May Fl.
1919, for which I gave him my note.
This was repaid by me to him Julv
IA, 1910, with interest, at which time
Mr.. Sands said he was unable to fhd
my note. However. ] have my can
celled check bearing his Endorsement.
This represents every cent that
Mr.. Sands has paid me since Decem-
ber 81 1917. lie has paid curtail-
mcnts at the bank on the original
note OF six thousand dollars given in
settlement for his house, and today
owes a balance of nine hundred dol
lars thereon.
"Of the forty thousand dollars
which Mr.. Sands says was paid for