The New York herald., 1921-05-17
CHARGES TAKEN Up
BY SHIPPING BOARD
inquiry on Allegations Of
Fayoritism in Receiver
ships Begin To-day.
CONRAD MAKES DENIAL
aNs Complaint Was Made
o Admiral Benson by
Discharged Clerk.
REVELATIONS PROMISED
II. W. Henderson Says He Has
Twenty-Five Witnesses to
Support Him.
AENELATIONS PROMISED

A committee of inquiry appointed by
Admiral Benson to investigate charges
made against w. Davis Conrad, the
Shipping Boards chief admiralty coun-
sci in New York, by one Of his subor-
dinates, e. H. Henderson. will hear
witnesses in closed session in the
toard's offices at As Broadway to-
morrow morning.
Mr.. Henderson, who is described by
Mr.. Conrad as law clerk" and who
describes himself as assistant counsel
in the admiralty division Of the Ship
ping Board, says he has twenty -flve
witnesses to support his formal COM
plant that Mr.. Conrad has caused the
Government a great loss Of money in
relation to receiverships Of companies
operating Shipping Board vessels. Mr..
Conrad says the chasseD will easily be
proven false.
Mr.. Henderson, first charge, made
IN a letter TO Admiral Benson, was that
Mr. Conrad used his position and au-
thority to place in the hands Of re-
ceiver1 certain insolvent steamship COM
pan!es 90 par cent. Of whose assets con-
States Shipping Board held title. His
second charge was that Conrad misused
his office ~ place as attorneys for tho
receivers Mr.. Conrad's brother-in-law.
A. c. Carson. ane Delaney Nicoll, Jr.,
who, says Mr.. Henderson, haw received
large fees. The third chafxn was: wv.
Davis Conrad by his a.~1ona has caused
the loss Of large sum OF money to tho
Government, and each day the loss still
continues"
Charges False, says Conrad.
Mr. Conrad put forth this statement
yesterday:
THE charges against me were pre-
sented to the board by a discharged law
clerk after his dismissal from my office.
On being dismissed this young man ap-
pcaled to Admiral Benson for a hearing
and at the Same time fled charges
against me. Under these circumstances
his dismissal was suspended and a COM
Inittee appointed TO hear and determine
the whole matter.
AS inc matter ~ HOW UciOFc THAT Sosh-
rlittec to which I nm ready to submit
my complete rcfutat,on OF these charges,
it would be manifestly improper for mo
70 discuss them pending the action Of the
committee, except to say that the charges
are false in each and every detail and
sre fully and completely refuted by the
record, which will speak for itself and
which will disclose that every step taken
in relation to the receiverships In ques-
tion. including the nomination and APP
po!ntment Of the receivers and the APP
pointment OF their counsel. was taken
at the direction OF the board and its Of
ficers in Washington"
AS evidence that he Is not law clerk.
but a man OF responsibility Mr. Hender-
son submitted yesterday that he is
graduate OF Annapolis and OF the law
school OF the University Of Chicago, that
he was formerly counsel for the Union
Trust Company OF Chicago and that dur
ing the war he was director OF the navys
turbine engineers school at Carnegie
Tech, Pittsburg. with the rank of Com
raander He said that his dismissal BY
Mr.. Conrad was not suspended, but that
Admiral Benson had him reinstated.
De Lancey Nicoil, Jr., before he re-
signed to enter private practice was an
Assistant United States Attorney. and
A. c. Carson, his present partner, was
on the legal staff OF the Shipping Boa rd.
II was said at the Shipping Board offices
yesterday their fees for legal work In
volving more than 8. .000, 90 have been
about $4,000.
No Fees for Receivers.
All the receivers in the case mentioned
by Mr.. Henderson are Shipping Board
men. They get no fees as receivers.
'rhey are. George w. Sterling, receiver
Of the American Star Line. Atlantic
.Adriatic Steamship Corporation. and
Victor s. Fox & Co. Inc; T. J. higgins.
tor American Merchant Mariners, Inc,
and States Steamship Corporation;
Frank S. Martin, for French American
Line Inc: w. j. Coogan, for Interna-
fional Maritime Corporation George f.
McCann. for italian Star Line, and r.
7. Keen for Standard Steamship Com
pany.
The committee of inquiry consists of
Darra gh de Lancey Robert A. Dean and
Charles Sutter. Mr.. Sutter came to New
York yesterday.