Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-06-17
MITCHELL HURLS
CHARGE OF CRAFT
IN CUSTER BATTLE
MFavoritiSm" Also Abounds
in Commerce Unit, He
Declares.
MORO DISASTER LAID
TO INSPECTION FAULTS
Cutting Death Might Have Been
Prevented by Air Commerce
Bureau. He Asserts.

ulSm ana graft aDOunQ III uoTS Judu
one Government department was made
today by Ewing Y Mitchell, who was
ousted Saturday by President RooSe-
welt as Assistant Secretary Of Com
merce
Opening what he termed a fight
10 the finish" he said in statement:
1T is unfortunate. but none the
less true. that the Department of
Commerce is not the only department
In Washington where the ideals of
the New Deal have been strangle0.
improper favoritism and graft abound,
where there is apparent evidence of
corruption and the process Of the old
steal proceeds undated"
Partially Reoreanized.
THE Bureau of Air Commerce and
the Steamboat Inspection Service he
added, have been partially reorgan-
ICED, but much remains to be done,
particularly in the latter service,
where inefficient inspection probably
contributed to the Moro Castle diSas-
ter.
TT may well be that the lives of
Senator Cutting and those who died
with him in the recent airplane crash
might have been spared if one with
knowledge. experience and stability
suited TO the position had been in
charge, for the past two years, of the
Bureau of Air Commerce"
This bureau and the Steamboat In
spection Service are under the De-
partment of Commerce, headed by
Secretary Roper.
Investigation Asked.
In announcing his diSmiSSal-be-
cause of his refusal to resign-Roper
said Saturday President Roosevelt had
asked the Justice Department to make
an investigation Of his previous
charges against the Commerce Depart
nnent.
A Justice Department spokesman
said information submitted by Mitchell
was being examined, but could not be
made public"
After conference with Attorney
General Cummings. his spokesman
said Mitchell had submitted infor-
nation to the department in install
hlCIGo. DoIt ECU nllu
t,onsl information quite recently"
In his charges. Mitchell also con-
tended that special interests" dom
mate the department. He criticized
Government contract with the
United States Lines for the permanent
lav-up Of the liner Leviathan, trans
action which he said was consum-
mated BY Secretary Roper in
March. 1885.
Letter Sent 70 Roosevelt.
The accusations were made In a
letter which Mitchell said he sent
TO President Roosevelt on May 30
after the President had called for his
resignation. The reason the Presi-
dent gave for his demand was that
he wished 10 reorganize the tranSpor-
tation service of the Government and
desired for this enlarged endeavor a
man of large executive and admins
trative training"
Mitchell. who was one Of the origi-
nal Roosevelt men in Missouri. con-
tended the Levia than contract was
against the public interest" and that
prominent among whom are P. A. s.
Franklin. John NJ. Franklin. Vincent
Aston and Kermit Roosevelt" stood
10 benefit by it.
Mitchell said he had written Presi-
dent Roosevelt saying it had been
STATED here in the department" that
the contract was made at the Presi-
dents direction.
$4,000. 600 Subsidy Cited.
IF this is true" Mitchell's letter
said. Il am satisfied that this action
on your part was taken without full
knowledge of all the facts and without
full knowledge of the damage to the
action entailed.
He said the controller generals Office
had pointed out that the United States
Lines Co. had received a Government
subsidy of over So 900 900. less than
four years prior to March. 1885, to
insure the continued operation of the
Levathan for five years.
Mitchell quoted the acting con-
troller general as saying that now it
Is proposed to substitute the non-oper-
alton of the vessel for the remaining
two years by waving hquidated dam
ages that would accrue for failure to
operate the vessel in the years 1896
10 the extent of 81. 100000 in addition
to $4,000 accrued for the years
1933-34''
100000 TO Be Paid.
Under the contract. Mitchell con-
tended. the Government Is to receive
100000 over a 12-year period, without
interest. in return for waving huui-
dated damages Of S2,220,00 The
cempany's promise to construct new
vessel he said, was not valid con-
sideration."
Il apprehend. Mitchell said, that
one Of the reasons why certain per-
sons have urged my removal from
office Is because of my vehement oppo-
sition to transactions like the laying
Up Of the Leviathan ="
Mitchell also criticized the Bureau
Of Air Commerce and the steamboat
inspection service.
He said that on May Jesse Jones,
chairman of the Reconstruction
Finance Corp. had asked him to be
come associated with our r. F. G.
mortgage company" but that he re-
fused to leave his Commerce post,
saying:
Il was drafted for the Job, and from
the standpoint OF the Governments
interest. would be 100 per cent
slacker II I quit now"