The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-21
BOILING IS CALLED
BLACKMAIL VICTIM
Benson Says Walsh Charges
Are Based on Old Case With
out Foundation.
ACCUSED MAN ABSOLVED
Sands, 1t Is Said, Tried to
Have Wilson'S Brother-in-
Law Appeal to President.

WASHINGTON. Nov. 20--Admiral Ben
son. chairman of the Shipping Board. in
formal statement regarding charges OF
bribery made before the Walsh commit
/ tee against r. w. Boiling. said that Mr..
Bolling's explanation OF the report was
perfectly satisfactory"
The chairman said that after ne took
Office and Mr.. Boiling was appointed
treasurer. Mr.. Boiling told him the
whole story of the alleged charges
made by Tucker X Sands.
His explanation was perfectly salts
factory TO the chairman of the Shipping
Board" Admiral Benson said "In adj
dition. after the same subject had been
brought to my attention by Mr.. Nc
Cam. the matter was discussed with
Col. Golf. our general counsel, and to-
gether we directed that thorough and
complete investigation of the various
allegations and charges against Mr.. Boil
ling be made
Attached to the chairnan's statement
was a copy Of the report of the investi-
CATION made by the Division of Investi-
cation. date, September 23 II was
signed by Frank Burke, chief of division,
who said the inquiry had been as to
Charges made that Mr.. r. w. Boiling.
now employed by the Shipping Board.
had participated in commissions. said to
have been paid by the Downey Ship
building Company to Tucker Sands"
/ Il saw Mr. Houston Thompson, vice.
president of the Federal Trade Commits
sion. and who was for some time up to
1 the latter part of 1919 United States AS
sistant Attorney General" the report
said. who told me that Mr.. Boiling came
I TO him about two years ago and report
ed that an unsigned communication had
reached Mr.. Tumulty. secretary TO the
President in which the writer charged
that he had accepted part of $4,000
which was paid by Downey of the
Downey Shipbuildng Company to Mr..
Sands.
Mr.. Boiling requested Mr.. Thompson
TO make very thorough investigation
because of the fact that he was charged
with a very serious crime and IL he was
guilty he should be punished If inno-
cent his innocence should be established.
The letter, 1t seems. was either misplaced
or destroyed. so that nothing was done
at the time"
Sands at this time" the statement
! continued was under indictment by a
Federal Grand Jury. charged with vio-
I lation of the banking act. On advice
/ of Mr.. Thompson Mr.. Boiling wrote
letter 20 Sands telling him that while
( he regretted exceedingly that he had
/ become involved with the Government,
I he could not and would not approach
the President on any such proposition
! Expert bank accountants from the
Department OF Justice traced out all
checks, notes. drafts and other papers
that could possibly have any bearing
on the case. the report said. and failed
to find anything that corroborated the
statement OF Sands" adding:
In the belief of Mr.. Thompson. il
was blackmail. engineered by Sands. to
force Mr. Boiling to intercede with the
President to save Sands from further
prosecution by the Department OF JUS
| tice.
In view of the fact that this matter
had been investigated BY the Depart
ment of Justice and nothing found in
eliminating against Mr.. Boiling Mr..
Burke's report said. Il will consider
this matter closed az far as the division
of investigation is concerned unless
otherwise instructed"