New-York tribune., 1921-05-17
Ship Receiver
Graft CHARGE
To Be Probed
Loss Of Millions to Govern.
n,ent Alleged i'm Accusa-
ton Against w. ID. Conrad,
Asst Admiralty Counsel
Boards Liners Involved
Allegations Unfounded, Is
Reply of Lawyer; Lays Ac-
ton to Spite of Ex-Cierk

Charges that the governments inter
est in millions Of dollars worth of
ships owned by the United States Ship
I ping Board has been jeopardized by the
appointment of receiverships for vari-
Gus marine corporations will be in
vestigated by committee selected by
Admiral w. S. Benson, chairman of the
board, which will meet tomorrow at DO
Broadway.
The charges are made on complaint
by E, w. Henderson, assistant coun-
sci for the board, that w. Davis
Conrad, assistant admiralty counsel in
New York. has used his authority to
| place in the hands OF receivers certain
insolvent steamship companies, 90 per
cent of whose assets consist of ships
the title of which is in the hands of the
Shipping Board.
Charles Sutter, chairman of the COM
mittee, arrived from Washington yes
terday to arrange for the hearings on
the charges. The other members are
Darragh De Lancey, director of the
| D.
Robert A. Dean, assistant to the chair
man.
| c. G. Hoffpauir, assistant counsel
for the United States Shipping Board,
upon whose investigation at the order
Of Admiral Benson Mr.. Henderson's
charges are based, declared last night
that IN no case was a recelvership
justified. In his opinion, some of the
companies were not insolvent, and in
the case of those that were liquidation
should have been substituted for q
receivership.
! According to an affidavit made by
with his brothers. law, Adam C. Car
son, and Delaney Nicoll jr. about the
end of August or the first of Septem-
ber, 1920, to form new law firm, with
Carson and Nicoll "as recognized mem
| bers with the purpose Of being instru-
mental in placing in the hands of re-
ceivers or in bankruptcy some thirty
or forty shipping firms which were in
financial straits, with the view of hav-
ing the new firm appointed attorneys
| for the receivers.
"This," the affidavit continues, "could
be easily accomplished in view Of the
fact that the United States Of America,
acting through the United States Ship
ping Board, was the largest creditor in
every case and that they could obtain
the cooperation and assistance Of Mr..
Conrad, acting on behalf Of the gov
ernment."
In addition to the $1OO0,0O0 which
the receiverships have already cost the
government, Mr.. Hoffpauir estimated
advances made by the Shipping Board
in these cases at So 100000. He doubted
very much whether this sum ever would
be recovered. Lawyers fees already
paid, he said, amounted to $97,500, and
he quoted Delaney Nicoll jr. as saying
that they ultimately would total be-
tween $500,000 and 100000.
Nine marine corporations are named
by Mr.. Henderson as having receivers
who also are officials of the Shipping
Board. The firms are the Merchant
Marine, Inc. the American Star Line.
the Atlantic-Adriatic Steamship Com
pany Victor S. Fox & Co., Inc, the
French-American Line. the Interna-
tlonal Maritime Corporation, the Ital-
ian Star Line, the Standard Steamship
Company and the State Steamship Cor
poration.
Losses as Estimated
Various officials Of the Shippiny
Board are named as being receivers
for these lines. The companies, &C
| cording to Mr.. Henderson, acquired
operation Of Shipping Board vessels
by paying 10 per cent of the value
Of the vessels. The charges declare
(contInucd on page feur)