New-York tribune., 1920-12-01
aer With Mr.. and Mrs. Sands at the

dinner with Mr.. and Mrs. Sands at the
! hotsi
Nr Boiling said tn; the Shipping
/ Board ''graduallv redu its funds
III S&nds's bank in the I, -ular course
Of business. He said that at one time
! the board had deposits of s. ,Oo0 900 II
! the bank. when it was decided e
in view Of the fact that the bank had
q capitalization Of only S50O,000.
Asked TO explain in more detail the
motives which Sands may have had in
involving him in the graft charge, Mr.
Boiling said that there were two mo-
tlves: FIRST. his refusal to intercede il
Sands's beha't with the President, and
second, the fact that his brother, A E.
Bollng, eventually took the position st
the Commercial National Bank which
Sands was forced to vacate following
his Indictment
My. Boiling said that when the posi-
ton was offered to his brother. who at
that time was president of a bank in
New York, the latter declined it twice
He said that Mrs. Sands had requested
him TO prevail upon his brother not 70
take the position, saying that her hus-
band was prosecuted by the bank ofi
cjals. Mr.. Boiling said he assured her
that his brother had already declined
because his brother eventually accepted
the post and is now president of the
Commercial National Bank Mrs.
Sands harbored 4 grudge against him.
Believed Sands Was Bluffing
Mn Boiling added also that in his
opinion Sands never intended to so
after he had made it in the unsigned
affidavit drawn up by A.fied McCann,
d newspaper man, and SchwarZkopf.
another reporter, and the matter had
gone the rounds in Washington, he
decided to go the limit. 1t was Mr..
Bolling's opinion that Fuller's ac
tion in telling McCann of the alleged
$4,000 notes paid as a bribe by the
Downey Shipbuilding Corporation and
in appearing before The committee was
to force action on the part Of Mr..
Boiling that might result in the re
versai of the four-year sentence against
HIM for uttering forgery. Mr. Boiling
denied flatly the statement made by
Fuller before the committee that he
had seen Sands hand Boiling q check
for $500 or $500" at the Willard
Hotel.
Among the financial transactions
which he had with Sands, Mr. Boiling
testified, was one in connection with
the affairs OF the brokerage firm of +.
A. Connolly e. Co., in which Mr.. Boiling
was a partner, and from which he re
signed Immediately after the Lawson
peace leak" investigation, in 1917. Al
that time it was said that Connolly &
Co. had made big profits in the stock
market By receiving advance informa-
ton on the Presidents peace note.
Mr.. Boiling said that when Connolly
& Co. was organized Sands sgroed
to obtain "a loan OF $4,000 from his
bank on the payment of commission
OF $4,000. This was done. aNhough
Mr.. Polling could not say whether the
c mission ever had been paid He
sSse he esigned in February, 1917, and
lost tie original $4,000 which he had
invest. Dr. -he firm and an additional
$1,000 ) 7ich- he was Obligated TO pay
a pant Of the firm losses
$50 Il e million / made said Mr.
Boiling sarcastically. cost me $4,000
l.; was to meet that $1,000 obligation,
he said, that he borrowed the $500
from Sands on three OCCASIONS This,
he said he has been trying to pay off
by ortgaging his home
How was it that you paid all Of the
money on Sandss loan if he still owed
you $500 before this time and had ac-
knowledged that debt" asked Chair
man Walsh.
81 don't remember really don't re-
call how that vas done,' repliel Nr
Boiling
"Why wa not the 5000 deducted or
ne loan pa. ment?' asked Nh Walsh
cant tell YOU" answered NJ
ling.