Evening star., 1933-10-21
REPORT ACCUSING
OFFICIAL SAELVED
Senators Told Alleged Favors
in 1880 "Might Constitute
Criminal Acts"
BY the Associated Press.

BY the Associated Press.
In 1880 the Department OF Justice
reported that favors granted q Mer-
chant Fleet Corporation official by q
ship line head might constitute GRIM
inal acts" but nothing was done about
1t, the Senate Committee investigating
ocean mail contracts learned yesterday
Henry Herberman, president Of the
Export Steamship Corporation Of New
York, q witness yesterday, was the ship
line head. r. D. Gatewood, former
head Of the Merchant Fleet Corpora
tion's division Of repair and mainte-
nance, was the Government official
Gatewood Is now In France. Herberman
said.
Before v. w. Hughes of the Depart
ment Of Justice testified about the re-
port, Hutch I. Cone, former Shipping
Board member, said he had heard there
might be a scandal in the relations
between Heyberman and Gatewood. He
testified that he urged T. v. O'Connor
former Shipping Board chairman, to
take vigorous action.
O'Connor told him, Cone testified,
that the Department of Justice had in
vestigated the charges. He added that
OConnor indicated that some one" at
the White House felt no further move
was necessary. That was in 1880.
Anyhow" Cone said, nothing fur
ther was done so far as I know"
Extract From Report Read.
He said he had never seen the report
although he told O'Connor he would
like to read it.
Hughes read an extract from his re-
port on the Herberman- -Gatewood affair
as follows:
Possibly, also, 1t might be consid-
cred that the favors granted to r. D.
Gatewood. formerly in charge Of re-
pairs Of the Shipping Board, by Henry
Herberman constitute criminal acts.
1T Is shown by the record that the
ships sold to Henry Herberman by the
Shipping Board were placed and main
tanned in the very best of repair by
the board, Gatewood at that time being
in charge of said repairs.
From 1924 to 1927, inclusive, there
was spent for maintenance and repairs
on the 18 ships sold to the Export
Steamship Co. $1.17l ,432.14, and for
betterments on these ships, 1926, ,465 30.
Henry Herberman on July 26, 1927.
forwarded to California $12,217.64 for
the purpose Of taking over the farm
owned by A. w. Pattiani, father-in-law
VI ". -. IdtCWOoo, oe O AVA oAcSAoouAS Z
sale.
Put in Chauffeur's Name.
"It was originally thought that the
property would be placed in Herber-
mans name, but later instructions
from Herberman placed the property in
the name of Joseph Schultz. who is
Herberman. Pattiani has been per-
Schultz Is unknown to Pattiani, but
Pattiani is fully aware Of the identity
of Herberman. Pattiani has been per-
mitted to remain on the farm, with no
expense whatever to him. since that
time. No rent, interest or any other
charge Is assessed against Pattiani
I'm addition, Henry Herberman pur-
chased "a head Of registered cattle from
Robert H. King Of the Union & Vir-
ginia Stevedoring Companies, on March
II, 1924, and Herbert Herberman
gratuitously Immediately shipped these
cattle to Gatewood's father-in-law,
A. w. Pattiani, at Pope Valley, Calf.
Capt. Gatewood stated that he had
mentioned to Mr.. Herberman in the
early part of 1924 that his father-in-
law owned a small ranch and was
anxious to raise thoroughbred cattle
and that shortly thereafter these "a
head Of cattle were shipped to his
father-in-law by Herberman.
"Gatewood stated that he thought
Herberman owned the cattle and mere
ly wanted to dispose of them"
Herberman, when interrogated with
regard to this transaction, said he had
cent the cattle to Gatewoods father
in-law as an act Of charity.