New-York tribune., 1921-02-20
House Inquiry
Shows Boiling
Took No Bribe
Walsh Committee Winds
Up Its Investigation of
Operations Conducted bv
the Shipping Board
Hurley Praised by Payne
Assertion Made u. s. Ships
Can't Compete With Others
Unless Liquor Is Served

WASHINGTON, Feb. 1e.-winding m
its eighteen months investigation OF
Shipping Board operations. the select
House committee headed by Represent
atIve Walsh issued formal statement
to-day holding that r. w. Boiling,
brother-in-law of President Wilson and
treasurer Of the board, was "not guilty
Of soliciting or accepting any bribe,
gift or gratuity," as charged by Tucker
X. Sands, a former Washington banker
in connection with q contract awarded
by the board to the Downey Shipbuild-
ing Corporation.
This was the second statement issued
by or on behalf of the committee ex-
onerating men whose names were
brought into the investigation. The
first, made public several weeks ago,
said the committee members did not
believe that Charles M. Schwab had
received expense money from the gov
ernment while serving as director gen.
erai of the Emergency Fleet Corpora
tlon, as had been charged by an &C.
countant who examined the books Of
the Bethlehem Steel Corporation.
Cleared by Investigation
To-day's statement came after Mr..
Boiling had reappeared before the
committee to reiterate his denial of
Mr.. Sands's charges and A. Nj. Fisher,
committee investigator, had testified
that he had found that there was moth
ing irregular about transactions be-
tween MIR. Boiling and Mr.. Sands. Mr..
Fisher said the transactions were pure
ly of personal nature. Mr.. Boiling
previously had testified that they had
to do with payment of funds due him
by Mr.. Sands on a house constructed
for the latter
Secretary Payne, former chairman Of
the Shipping Board, was before the
committee to-day for more than an
hour, reviewing conditions as he found
them when he became chairman, soon
after the armistice was signed. He
said that when he became chairman
after the war he found accounts in
bad shape, and that he caused the dis
missal of several officials and abolished
several bureaus.
He also criticized the provision Of
the merchant marine act creating "a
board Of seven members. A single
executive, he argued, should be placed
in control The provision directing the
President to abolish commercial treat
les also was attacked.
Mr.. Payne said he was convinced that
the government could not successfully
operate merchant vessels in competi-
tion with private shipping interests,
and also said American passenger lines
could not compete with foreign liners
unless permitted to sell intoxicants
during voyages.
Payne Lauds Hurley
Asked why the accounting of the
board had been allowed to get into
tangle, Mr.. Payne said "no executive
could devote. his time to building up
enthusiasm and constructing a worka-
BILE organization at the same time"
"Mr. Hurley (E. N. Hurley, of Chi
cago, former chairman of the board)
was the greatest man that could have
been picked for the job" said Mr..
Payne. at was his task to create an
enthusiasm, to SELL shipbuilding to the
country as war measure, and he
did it."
While the country was beng solidi-
fed before the war shipping program
actual building and operation of ships
overwhelmed those in charge, MIR.
Payne said, adding:
There was no system of account
ing; no knowledge of operation; no.
body to oversee routine while those in
charge were stumping the country"
Charges that. favoritism had been
shown by operating officials of the
board in ALLEGATION Of tonnage, division
of ports and routes and other operat-
ing questions were denied by the wit
ness, who said some of the larger ship
ping companies were "sore" because
they were not given all of the tonnage
they sought.