Evening star., 1935-06-19
Suggests Grand Jury Inquiry
Into Possible Criminal
Acts in Ship Subsidy
Grants by U. S.
CORRUPTION is HINTED,
0USTED AIDE ASSERTS
Two Hour Testimony Before
Crowd of 300 Marked by Fre-
quent Demands of Probers for
New Data Instead of Rehash
of Already Known Facts.
BY the Associated Press.

By the Associated Press.
Ewing Y. Mitchell, ousted Assistant
Secretary of Commerce, told the Sen
ate Commerce Committee today he
had no evidence of direct bribes"
in Government ship subsidies, but sug-
gested a grand jury investigation to
determine if criminal acts were in
volved in granting millions of dol
lars to private operators.
After charging a long list of zap
pearances Of favoritism" by former
and present administrations in con-
nection with the subsidy program, he
said he would be satisfied if Joseph
B. Keenan-ASSistant Attorney Gen.
eral to whom his charges have been
referred-held there was nothing to
prosecute
Praises Keenan's Ability.
He told Senator Vandenberg, Re-
publican, of Michigan, that he be-
lieved Keenan, was very efficient
man and if we leave it to him we will
get efficient results"
THAT would satisfy me, too" Van
denberg said.
keenan, was sitting quietly close Dy.
The exchange followed repetition
by Mitchell of his allegation, already
made public by him in a letter to
President Roosevelt, that the admin
istration had given s1,720,000 to the
United States Lines under a contract
for retirement of the liner Leviathan.
AS Mitchell left the stand after
more than two hours, to return to-
morrow. Senator Fletcher, Democrat,
Of Florida admoniShed:
Lets have facts, Mr.. Mitchell, not
inferences and mere indications"
Mitchell had said just previously
he had never charged graft directly.
/ have never seen any money passed,
but millions in effect have been given
away through these subsidies and
there is indication of corruption"
Earlier, with Secretary Roper listen
ing closely, Mitchell had repeated
charges of maladministration in the
Commerce Department.
Time and again, Senators asked him
to be specific and not go over evidence
which already is before Congress from
previous inquiries.
He said he knew the Shipping
Board was a cesspool of corruption
before he came to Washington and
had laid his complaints before the
President.
The contract entered into by Roper
last March for laying up the Levia-
than, he insisted, presented to in
terests headed by p. A. S. Franklin,
Kermit Roosevelt and Vincent Astor,
$l,720,000 as 'an unearned part" Of
subsidy providing for penalties for
incorporation of the Leviathan.
Charges Arouse Senators.
Some of his attack drew sharp de.
fenSe from Fletcher and Senatd
White, Republican, of Maine.
These Senators upheld Admiral II
I. Cone Of the Shipping Board, a suLA
ject of Mitchell's criticism.
Mitchell told Of contract for opera
ton of an American West African Line,
under which the operators, the Bar
ber interests, received a loan and
mail pay amounting to $4l4,000, ran
the three ships three or four years,
turned them back to the Government
and got the full amount" for them.
Those facts were developed by the
Black Committee" observed Chair
man Copeland.
'Yes, but why doesn't Roper do
something about it?" Mitchell asked,
adding such contracts should be re-
ferred to the Justice Department for
cancellation.
"You don't charge this administra-
ton with favoritism in connection
with this contract do you?" asked
Senator Vandenberg.
mo, do not"
Senator White observed Congress
had directed" the West African
transaction.
The testimony included charges
that the International Mercantile
Marine interests had received q
scaling down" of $4,000 In their
Government contract to operate the
Leviathan when they took over the
United States Lines in 1891.
Senator McNary, Republican, Of
Oregon, inquired whether Mitchell
had tapped any new sources" Of
information or if he was merely going
over evidence in prior congressional
inquiries.
Its all in the reports, but nothing
has been done about it," Mitchell
replied.
"Tve been trying to get Secretary
Roper to recapture several million dol
lars and see whether any crimes have
been committed as in the Teapot Dome
scandal"
While scores in the large Caucus
Room listened intently, he added it
was the Secretary's duty to lay the
evidence before the Attorney General.
Meanwhile, at his press conference
President Roosevelt said he had ap-
proved the arrangement for retirement
Of the Leviathan because it was silly
to require the operating company TO
take a loss If it agreed to apply the
amount Of that loss to construction Of
Continued on page q. Column II