New-York tribune. [volume], November 27, 1920, Page 3, Image 3

About New-York tribune. [volume] (New York [N.Y.]) 1866-1924

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Shipping Board
?s Operated at
Fiiiormoiis Loss
Congress To Bo Asked for
.?150.000.000 in Addition
to VI! Receipts to Carry
Work Over Next Year
Cargo Vessels a Failure
la?k *.f Demands for
Space and Freight War
on Atlant i
ire
BU
aniei
, -k. Tribwe t Wai '.-?? it - Bureau
w VSHINGTON.Xov. 26. The United
pping Board is being oper
... . ? n lou s losa every moni h,
X was ai tl rital \ --aid to-day, and
m a : lit th boa rd will ask < *on
gn rant it ai appropriai ion of
$100.0 \ '" add tion to all its re
cc,pt ' the operation and sale c f
-.-, - sale of ya rd - and surplus
up] ; e ? ? ' tlement ? '<* claims,
In -vit over In" next fi s,-al
ifj ir the ' oa ? -: admit! ed to- |
. ess would be asked to ?
? - "a -? - - larg< ? um," hut i
leclined to discuss the board's!
? ? ? al condition in advance of the i
*ion of the;r financial state-:
menl I ? Congress. The estimate of the ?
C ngress will be asked to,
granl n a lump sum was unofficially
I ? 5150,000,000, however.
financial advisors of the board
v : ?i-.ipPHr before the sub-committee
6f thi Appropriations Committee of
th< House of Reprei>entative.3 that is
? dry civil bill and for?
mally maki the request for the ap
. i ther to-morrow or Mon?
d?;..
Board Kequired to Support Itself
$150,0 1,000, it was said, would
be used' a-; a revolving: fund to pay
the operations of the Shipping
Board, The fund would be replenished
::.e receipts of the board, money
Leing turned into it instead of into
the Federal Treasury, as fast us it was ;
I .'ed from the operation or sale
oi vessels, shipyards and surplus ma- !
terials and from the settlement of i
claims,
Since July 1 of this year the Ship-;
ping Board has been required to sup
Port itself. During the last session of
Congress the board asked for appropri
Bti ? totaling nearly $450,000,000. The
Appro:-:..' ons Committee refused to
give the board any money at all, and
pn ed ii the sundry civil appro.pria
assed last June that there
should be available for the board's use
aboul S60.000.000, that was left over
from thi t fiscal year, together with
I oard received from the
?a an . operation of its vessels, the
? sale of , nd materials and the
setilei i laims it had pending
aga .-? other government departments.
Expenses Put at S30ii.000.000
' ? ' ??' pensi - of '': e board for the
-????' ? ear were estimated at
I ? ncluding $29,000,000 asked
a- fund for the operation of
the fleet -:" merchant shirs. Congress
tem of $44,(.,000 asked
fi ' pa ring former German ships and
pa ther estimates down to a;
: ? ippro: imately $200,000,000.
? - .-. ? ?? vhei the la -i ap
was passed that the
i d ha e a ie\enue of about i
J: i.OOO during the present fiscal
; of its revenue from
r ?i ? ? nerchant ships. The es
. : ; $60,000,000 balance
froi : ??? - -.- appropriations, $70,000,-1
000 Wa i Dej art ment in set
tlei ? ms, $15 .,000 from the
sal.- oi hips Id, $25,000,000
from ':.- ah irplus materials and
*? ' .c sale of additional
t?TL-'' ? fels.
gains! the War iJepart
I - ? ute, however, ai?
ra' Benson, chairman of
Board, expects to have
then ????'?; withii a short time. In
itea f the < -:r-- ;ted $25,000,000, less
tha ? alf that amount has been
real . ? from thi sale of surpluB ma- '
teria '. board a! = o has found it
;? - ile *?> sell its cargo
ttl ? revenue has. come
?' - - irce.
< ariro .-hips Operated at T.oss
he i ? -' if the govi rnment
'?'? - ? - },-. thi board has !
beer al ist of the time, al- '
'. lugi the I lard's financial officers!
havi been ab:e to compute the
>? ?? of the oss. Lack of demands for
ca . i d the board to
ore ? vessels tied up,
*h'.'?< ... ? ? at ?- re continued in op
*?>? i . being forced to rema' n
ove; ? :.,'aiting fc r cargoes.
fh< .- . ar on 1 he Atlantic
a!s< to the hoard and
ba nto the board's rev
c
TI i ? .;. cia affa .-- i c the board, as '
( sclo efop the Walsh investigat?
ing ? New York, have been ?
a -mu ? condit ion, Mid the
al officers, work ing un- ?
? ?? Admiral Benson,
? ?-. - * g for months to
straightei thi ??? out. Officiah of trie
boar? ild - ? ? -,.y to-day just how
Wucl r p ? g Hoard is losing ;
eael laj i eacl week, but they are;
for - ? he pi ogress of the
beat - intai thai the lost ha
be- ?.,.-..-. that $l 0,000,000 n ad
diti< be nece* sary
to can er for the coming
--
iid hi ' ? pected to
? n : ,-??'
r< a '?., r ?
I
Mayor and Oaig in lilt
Over Snow-Removal Bids
Comptroller D?fendu Hi? Recent
Vction in Rejecting the
Ori^iniil ? onlract?
t- ? ?
Boa
'
' ' ; ;i.' g a I
- .- ... . . ., 0f the
t.witl h at bod
? .-? t racts
."" i e only <?v
,.?,,,; \* < , j 1 j ) |
. ? ,, recen t ly
. . . , .,.,..! ..,,-,,
or j? winter
h. Mayor
-;?'? - -.hi
?
I
''
ow a
? i ?
? ?
U
- ?
, o '.--v
. fj <
Street
'. ? ' ';
? ? . ? ? - -
',,'..- lie
I . -
11- ? i h i
?
?
. ' ? - <???.???,, i,.,nrd
. - .- . I"
?-..'-. th. ?.:. ;?i
1 ' ' ?'?',.!?.
- - ? ? know that fact then,
' ? . h\ ?.:< blarn<! on
;' ro - - ' r? torted Mi ( ralg
, I ion to ?'? hi
th. ' ? im (?rid
fwrred thu ,-.-/. bid? to thi Comr/i t
H* <-n imane?.
Tiffany & Co.
linn Avoue ?,37? Strut
Watches and Clocks
Boiling Bribe
Probe by U. S.
Half-Hearted
iContinufd from pago onel
was a personal friend of Sands of
twenty years' standing, testified that
on a visit tu Sands's rooms in the Hotel
Willard, in Washington, he saw Sands
hand Boiling a check, the amount, of
which, he said, was "either $600 or
">E00." He was not sure of the amount.
"I told Mr. Boiling, 'It's pretty soft
for you,' " testified Fuller, "and he re?
plied, 'No, it's pretty tough.' I said
'I'm sorry, because I am going to make
e big riffle.' "
Fuller testified that he met Boiling
and John Cranor, representative of the
Downey Shipbuilding Corporation, in
Sands's rooms on several occasions.
He also testified that he had recently
been convicted of uttering forgery and
sentenced to four years in jail. He
said he was now out on bail pending
an appeal. He told the committee that
he was being employed occasionally by
the Department of Justice in an ad?
visory capacity, despite his conviction.
Did Not Pursue Investigation
Congressman Walsh, chairman of the
committee, and Congressman -Kelley
pressed Mr. Meehan on the point of
why he did not pursue his 'nvestign
.tion of the charge rumored against
Boiling further.
Meehan maintained that in view of
the absence of corroborative evidence
of the charge and because of the stand?
ing and relationship of Boiling, he did
not think it advisable to pursue the
investigation. He declared that from
what he had been able to learn Bol?
shevist propagandists, headed by L. C.
A. K. Martens. Soviet representative
in the United States, wem interested
in discrediting high, officiais to pro?
mote discontent. He declared he con?
sidered Sands "a crook," and expressed
the opinion that "Boiling was the
victim of attempted blackmail."
Congressman Kelley-?Now, Mr. Mee?
han, you do not believe you have really
made an investigation' of tins case,
do you ?
Meehan?That's up to you to form
an opinion on. I've told you what I've
done.
Did Not Check Up Loans
Meehan admitted under further ex?
amination that he made no attempt
to check up any loans made by Sands to
Boiling, and made no investigation of
the charges at all as they involved
L.--er Sisler, formerly secretary of
the Shipping Board, who, Sands testi?
fied, had also participated in the di?
vision of the alleged graft.
Chairman Walsh-?It is a fact, is it
not, that, the investigation you made
in this case stopped with the inves?
tigation of the Department of Jus?
tice and with your interviews with Mr.
Twcedale, Boiling and Admiral Ben?
son and that it isn't closed?
Meehan-- Yes.
Chairman Walsh -Assuming that
there was no question as to the finan?
cial standing of the Downey Shipbuild?
ing Corporation; assuming they had
already had a large contract and that
thore was no need to camouflage to the
extent of $100,000 their bank standing,
what is your judgment as to what this
$40,000 was paid for to Tucker R.
Sands '.'
Meehan -In view of the present pro?
ceed i rigs, I would prefer to wait before
1 pass an opinion.
Explains Fuller's Ree'mployment
Congressman Kelley?-How do you
explain ?"uller's rc?mploymcnt by the
Department of Justice?
Meehan?Well, if you can get bigg."*
crooks by using Fuller, T say get them
and turn him loose. ,
Meehan added that he was in favo"
of going further into the investigation
of the charge against Boiling, now that
the charge has gained wide publicity.
He explained, however, that his in?
vestigation of Sand, and Fuller haci
convinced him thai they were not tc
be relied up'-ir. He said that aft?r h if
attention had been called to the rumor;
connecting BoUing with the all?g?e
bribe by Alfred W. McCann, the news?
paper man who drew up the affidavit
for Sands in which the latter made thi
charge, but which he refused to sign
he again called Boiling to his office anc
took the matter up with Admiral Ben?
son.
Boiling Satisfied Benson
Boiling, fie testified, went over hi;
story aga.n and satisfied both Admira
Benson and the witness that he was
the victim '>f attempted blackmail
Meehan testified, also, that he hue
?earned from a man named Beckerle
formerly an employee of the Shipping
Board, ::'.i<i dism sed from its service
that Sard- was said to hy,ve. threatenci
Boiling and a man named Robertson
formerly a partner of Boiling's in the
brokerage firm of I . A .Connelly & Co.
of Washington, that unless he i Sands
was paid >? fee of $25,000 for his ser
vices in financing thi brokerage eon
eern he would - ?? them.
."' ged h',' ..';' 1 "i '?? posure" re
:. ? i ,, ? " '. \\ In '.'?-.t' non y, 1 o II -
connection of th" firm with the farnoui
Supreme Court "lea!-.." which, accord
? ?- r-, te ! imony given by Fuller
forced the ?'? t> loltil ion of the firm.
Beckerle also said, Meehan alleged
that Robertson and Connelly had en
tared into an arrangement with hin
by which assets of the brokerage firn
were turned over to ! ?m ai a dumm;
?-, keep them away from Sand-, Bollini
'? ?;? - ;? resigned from the firm imme
following ' he "leal* " scanda .
Bested His Inquiry
I- .' a''t?r giving this Information
testi tied, Beckerlc suddenl;
b( ame meo n n cativi ai d wouli
offer no mon- information Mechai
?dded that, with thin source of Infor
, -, > on closed and the records of Sand
ind I ; ? er being m ?> to cast doub
pon the valid ty of any testimon
_. give, he decided to rest hi
. i. 'i ilry.
< hairman Walsh You were invest)
,. .. :, crooked transaction nod yo
.,- | ,?;, ?,i-.i i rook - to hi interest?'
t, would i ' you ?
'.:-? han I'robabl > ho
' hairmun Wa I h Yel, ;. ou nut isfie
... ,i ?ell w th Boll ngV c? planation ?
Meehan replied that from Boiling1
ma'nhe-r he believed the truth of the <"?
; ,r ation he gave and that A. M. Fi ihei
i.'.'-rr. arid statistician of the committal
aUo believed Boiling innocent. 'J I.
/,. - r,.'. u I hi i n ?? ' ntlga ' ion was no
undertaken by him until 1920, an
that tin- alleged tranHuction had take
, .. - ? in 1917 or 19]8,
Marten? Declared Involved
' ',!,;'.. Hum* n Kelle y m l ed Mi ehii
when h<- ),r-t heard the story of th
140,000 In not. i ?mid to have beon pal
by the Downey Corporation to liaridi
j and the witness said it was on the day
when McCann and his friend Schwartz
, kopf talked with Sands relativ- to his
affidavit. He said he had : i-i-n in?
formed that Schwartzkopf had rela?
tions with !.. C. Martens.
Congressman Kelley What theory do
you think induced Downey to let his
? notes get into the hands of a man
! like Sands?
Meehan 1 told counsel for the Ship?
ping Board that Downey did if to bol?
ster up his standing as affecting his
credit with the Shipping Board. Sands
did not want this in the. record, for he
! knew too much about the national
i banking laws. This is merely my opin
i ion I am giving now.
Meehan added that he did not look
up Downey especially in respect to this
matter. He said he had not looked into
any possible necessity for Downey
having to pay Sands $40,000 to aid him
in getting contracts with the board or
? the Emergency Fleet Corporation. Tbe
j board, he said, was at that time actu?
ally begging firms to take contracts.
j Didn't Believe Sands Was Paid
Congressman Kelley?Was it not the
I natural thing for you to have gone at
once to the credit department of the
j board to look into this matter and see
I if the account showed this transaction.
I Must there not have been some reason
' why he could not get a contract if he
| had to pay ?540,000 to get one?
Meehan I don't believe he paid
| Sands that $40,000 for that.
Congressman Kelley?We have the
record here that says he did.
Meehan?I did not hear until to-day
? that Sands had written a letter to the
credit department of the Shipping
Board in behalf of . the corporation.
There was no reason to go into the
Fleet Corporation's affairs.
Congressman Kelley-?Why did you
not know that Sands had written the
very day the contract was signed?
Meehan?Because we did not do
things that way, Mr. Kelley. The board
had let hundreds of contracts without
trying to learn the financial rating of
contractors. Many concerns without
any financial standing got contracts.
My theory is Downey gave that money
to" Sand? to get that bank credit testi?
fied to. We practically had no credit
department at that, time.
Borrowed Various Sums
Mr. Kelley then read into the record
the abstract of the report of the credit
department showing that the Provi?
dence Engineering Corporation was
sound.
Congressman Kelley?In view of this
report, what was the necessity for Mr,
Downey paying MO.OOO to get a con?
tract?
Meehan?I don't believe he paid it
for that reason.
Congressman Kelley?Really, Mr,
Meehan, as a matter of fact you have
not actually investigated this case at
all, have you ?
Meehan? That is a matter of opinion.
Meehan said Boiling told him he had
borrowed various sums of money at
different times from Sands.
Congressman Kelley Then why did
you not go to Snnds's office and look inte
his accounts if you wanted to cheek up
the points involved closely? Didn't you
think it would have been proper to
have gone to this terrible man Sands
and this eminently proper man Rolling
and have checked up their accounts?
Meehan Xo. I was convinced there
was nothing in the charge. Admiral
Benson was of the same opinion that
Mr. Boiling was all right.
Boiling Went to Admiral
Congressman Kelley?Yes, but the
Admiral got his impression from you
did he not*?
Mechan- -No. Boiling went to th?
Admiral at the time the story was bein^
talked of and told him the whole affair
Congressman Kelley- You did not, a?
a matter of fact, check up these ac
counts of loans?
Meehan?No.
? Congressman Kelley-?Nor ask Mr
Boiling for the aggregate of the loans
Meehan- Not that 1 recall.
Pressed on this point, Meehan said:
"It is possible Sands has been tellint
the truth and Polling has been lying.'
Says Inquiry Is Not Ended
Chairman Walsh?Mr. Meehan. d<
you want tins committee to understani
that you made an investigation of tin
Boiling matter'.'
Meehan?To some extent.
Chairman Walsh?Hum. to some ex
tent! Mr. Meehan, is it. not. a fac
that your investigation 'in this casi
was stopped with the report made b;
the Department of Justice and you
talks with Mr. Tweedalc and Mr. Boll
ing?
Meehan admitted it had, but wishfi
the committee to understand that n
suggestion had been made by anybed,
higher up to stop it. He cmphasizei
again that it. was, in fact, not cndci
yet
"We will ask our questions and dra\
our own conclusions," was Chairrna:
Walsh's comment on this statement.
Meehan's reply was that if Bollin;
were guilty, he favored giving Sand
immunity and prosecuting Boiling.
Den man Saya lie Is Read?
To Testify Before Bonn,
First Shipping Chairman IT ire
Walsh He Received !\o Sotie
to ippeai in I n (\ u i r ;
WASHINGTON, Nov. . 116. Williai
Denman, of San Francisco, first chaii
man of the shipping Board, t?l?graphe
Chairman Walsh, of the ?louse commi'
teo investigating tho board's activitie
to-nipht, after reading press reporl
that he had been expected to appc*
before the committee to-day, that h
had received no notice to appear, bl
would be "pleased t'> d? so" whenevf
desired. Mr. Denman's message said
"No notice to appear has reache
me, but I shall be pleased to do -
when you desire. ? I expect to leave fr
California about the seventh of Deren
ber and trust you will hear mc befoi
thai time,
"My testimony will cover fundnmei
tal policies of the board und will n.
be entirely devoid of constructive suj
g.- tion?, if, as I feel convinced, th
is what is wanted, Kindly make tli
telegram a part, of your record."
Colby Hour?. Cuban Delegate
WASHINGTON, Nov. 26. Consldo
aiiori of th.- proposed Cuban 'nan wi
re-, irned at the State Department i" da
when ,]<)".(> Tu rafa, n delegate from tl
Cuban government, conferred with Ci
der Secretary Davis.. Mi Tnrafn ou
lined definite measures of relief his go'
ernrnenl had be.-n considering! one i
which was an embargo on exports <
?sugar. He expects to confer ulso wil
ban kern in Now York.
Brinde! 1 Gets
Until Tuesday
To File Plea
(Continufd trom page onrl
; loss while the investigation is in prog
i ress.
It was intimated that Comptroller
! Craig, who has steadfastly refused to
have anything to do with the city in
' quiry, would be present It was made
j known, toe, that the discussion will be
? confined strictly to the matter in hand
? *nd that no mention will be mi.in of
j e'ther the city or the Corkwood com?
mittee investigation.
Whalen Answers* Untermyer
! ?rover A. Whalen, Commissioner of
i the Department of Plant and Struc
j ture-, issued a statement yesterday in
| reply to Mr. Untermyer's suggestion
j that suit be brought against Hoi.and &
I Co. and Commissioner Whalen to rt>
(over approximately $-1110.000 ?pent by
the city for the removal of ashes from
the site of the new courthouse, which
Mr. Untermyer says were dumped there
by Holland ,5r '?^
Commission >r Whalen reiterated
statements he made on the witness
! stand that he left the company in Au
j gust, 1917; that Holland & Co. was
j only one of the sixty-one firms thai,
I had been permitted to dump on the
site, and that when the facts were set
forth before a proper tribunal Mr. Un?
termyer's statements would be proved
to be the "most baseless, the vilest and
most contemptible defamation of a
public official in the history of city
government."
He added that the canceled confer?
ence scheduled for last Saturday be?
tween Mr. Untermyer and Whalen and
Corporation Counsel O'Brien had been
suggested by Mr. Untermyer.
Mr. Whalen's statement follows:
"In order to appraise properly the
action of Mr. Untermyer in canceling
an appointment made with the Cor?
poration Counsel and me it is neces?
sary to note that this appointment to
call at 1; is home at G ray stone was
made at Mi-. Untermyer's solicitation
and that the purpose of this appoint?
ment was to go over the form of agree?
ment which the Board of Estimate had
decided upon at the suggestion of Mr.
Untermyer.
"When such form was submitted to
Mr. Untermyer he said he could not
take it up then; that he would have to
take it up at his home, and he asked
Mr. O'Brien to go to his home on Sat?
urday afternoon, November 20, for this
purpose. At the same time he requested
the Commissioner of Blunt and Struc?
tures to a'tend the conference.
About Threat to Sue
"In backing away from this appoint?
ment, which was entirely of his own
making, Mr. Untermyer has merely run
true to form, for the record of bis
dealings with the Board of Estimate
and Apportionment shows him again
and again hacking away from the suc?
cessive positions taken by him. He has
the habit of backing away. He was
eager to investigate city contracts, then
he positively refused to do so.
"With reference to Mr. Untermyer's
statement that the city ought ta suc
Holland & Co. and make me a party to
to the action for filling of the court?
house site, I have this to say: ^
"That I hud nothing to do with the
dumping of ashes in the courthouse
cite.
"That my partnership with Holland
?v. Co. had terminated in 1917.
"That Holland & Co. was only on.
of sixty-one contractors who had per?
mits to dump on the site.
"That all facts and data in connec?
tion therewith will be presented he
fore the proper tribunal at the proper
time, supported by official documents,
and when that work is completed a
public record will be made that will
prove Mr. Untermyer's attack to he
the most baseless, the vilest and most
contemptible defamation of a public
official in the history of city govern?
ment."
Julius Henry Cohen, counsel for the
New York Port and Harbor Develop?
ment Commission, issued a statement
defending the work of Mr. Untermyer
against the Mayor's attacks in connec?
tion with the commission. He said that
Mr. Untermyer's appearance before the
Board of Estimate and Apportionment
in behalf of the proposed treaty with
New Jersey was purely in the puhlic
interest, and not intended as a grab
or the turning over of the port to
private interests, as the Mayor inti?
mated.
Mr. Cohen says the Mayor apparent?
ly has not read the proposed treaty,
which was indorsed by the Governor in
his message to the Legislature last
March. The Governor said that j
"articles in the proposed compact safe?
guard the municipality's waterfront
property."
City Holds lip Pay on
$J MOOMOO in Warrants
Hylan and Other Officials Are.
Said to Want More Time
for investigating Contracts
Mayor Hylan, through his Commis-;
sioner of Accounts, David Hlrshficld,
yesterday held up $1,000,000 In war?
rants, representing payments on city
contracts, pending further examination 1
of the contracts. The warrants were
passed by Comptroller ('liarles L. Craig ?
and sent to Mayor Hylan for his ap- I
proval and signature. Tho Mayor 1
turned them over to the Commissioner,
of Accounts. I
It was explained thai the warranl
had been held up because the Mayor
and other city officials had been unable
to obtain any detailed information in j
regard to the contract-' from the Comp- |
t roller. The Comptroller Was been con- 1
ducting an independent examination of ,
contracts in order to determine whether i
there has been any collusion or matched j
bids. He has refused consistently to
submit any evidence or records to the j
Corporation Counsel, the Commissioner
of Accounts or the Mayor.
Pay warrants on contracts, where in
? vestigation convinced him there were
' no irregularities, have been se"nt to the
Mayor in the routine of business. Ur
i der the usual procedure the warrants
i also have to go to the City Chamber?
lain for his signature before they come
back to the Comptroller for payment.
Comptroller Craig said yesterday that
the Mayor had been holding up war
. rant- on all kinds of city contracts for
two week -,
Commissioner Hirshfield explained
' that t v. ?, not the desire of the Mayor
, to embarrass the city contractors, but.
: thai the warrants had been held up
merely to take every precaution to pro?
tect the city's interests. The contract?
ors, however, are threatening to bring
! actions against the city to obtain thiur
money. The dock contractors on Staten
j Island were said to have threatened
j mandamus proceedings against the city.
Papers in a mandamus proceeding
1 brought by the Uvalde Asphalt Paving
Company, through its counsel. Edward
; M. Grout, of Brooklyn, were served yes?
terday on Comptroller Craig. The
? Comptroller was ordered to show cause
! why he should not pay for the work
; completed on three contracts with the
i eity aggregating $63.1.00. The plaintiffs
based their action on the grounds that
the Comptroller had no right to inves?
tigate contracts where the work had
i be. n finished. There are provisions in
: th. city charter which would seem to
: support this contention.
Asked yesterday if he was still de?
termined not to turn mcr any of the
j testimony or records, acquired by him
from contractors under oath to the
Corporation Counsel, who requested it,
the Comptroller said he saw no reason
? to change his mind.
"Whatevei- 1 have said or done about
the Corporation Counsel has in no way
'restricted his activities," said the
Comptroller, "but simply has prevent
; ed him from interfering with my ac
! tivities."
It is understood that several of the
j contractors building new schools are
, threatening to annul their contracts
.rather than submit to the decision of
the Board of Estimate adopted at the
suggestion of the Lockwood committee
to withhold 25 per cent of all payments,
pending further progress in the city's
contract investigation.
The contractors are said to be will?
ing to sign a waiver agreeing that the
city was not surrendering any of its
rights in making the payments, but
feel that they should not be compelled
to submit to the withholding of L'l> per
. cent of the payments in view o? their
? own obligations.
Five Jurors Selected
For Trial of Backer
Three Attorneys on Each Side
to Fight Out Perjury Case
Against Millionaire Builder
Five jurors had been selected when
I the perjury trial of George S. Backer,
millionaire builder, begun yesterday
in General Sessions before Judge Otto
; A. Rosalsky, was adjourned until Mon
\ day morning.
i Backer was indicted for perjury by
the general grand jury, the basis of
the charge being alleged contradictory
testimony given by him before the
i Lockwood committee. He had testified
. to losing money intended for Robert
; P. Brindell, alleged labor czar, at a
j racetrack, and then had reversed this
? testimony by admitting that he gave
; the money to two men, humorously de
| scribed by him as Mutt and Jeff.
The prosecution was represented
yesterday by Emory R. Buckner, Rob?
ert S. Johnstone and Stanley Richter,
special assistant district attorney;;.
Representing Backer were Edmund L.
; Mooney, Robert Manley and Samuel
Levy. Backer seemed little concerned
with the proceedings, laughing and
i joking constantly with his lawyers.
The Case Against Backer
Mr. Buckner, in a brief preliminary
statement, emphasized the fact that
; Backer is not charged with the misuse
' or misappropriation of the money, but
i with perjuring himself as to what he
had done with it.
i Backer had gone to a millionaire real
j estate operator, Ephraim B. Levy, and
! told him, according to the latter's tes
; timony before the Lockwood commit?
tee, that the strikes which impeded
the construction of Levy's building
could be settled by giving $25.000 to
I Brindell. Levy testified that $15,000
was given to Backer for Brindell.
Two talesmen were rejected before
I the first juror, William G. Thompson,
: of 2799 Eighth Avenue, a foreman in a
? repair shop of the American fan Com
' pany, was selected.
In the cross-examination by Mr.
Mooney of Clarence J. Luce, an ac?
countant-, of 5 West Eighty-fourth
Street, the first talesman called and
rejected, it became apparent that the
defense would stress the fact that the ;
money intended for Brindell w-as paid ;
to advance building operations.
First Talesman Rejected '
Luce admitted he would be preju?
diced against a man who gave money ?
under graft circumstances.
"Suppose it is shown from the evi?
dence here," asked Mr. Mooney, "that ?
the money was paid to advance opera-,
turns on a building in which the de
fendant wa.. interested with the;
owner'."'
"1 would think if over." replied Luce.
"Suppose it was shown i1 was given |
tn protect his own property," asked Mr.
Mooney, "would that remove any moral
prejudice or doubl ?"
"It would," said Luce. He was not
acceptable to thi defense.
During the cou.se of Mr. Mooney's
cross-examination of Thompson the
attorney asked if he had had any feel?
ing that the rent, conditions in New
York City were due to the fact thai
builders and building materials men i
were giving money to representative-;
of labor in large amounts.
Mr. Buckner objected to the que. '.
tion. Judge Rosalsky inquired of Mr
Mooney how the question affected the
issue and Buckner said it directly in ;
volved the question. Mr. Buckner'?. oh-'
jection then was overruled and Thomp- I
son said that, while he believed that!
i cut i ? i '.. ms ',?? i" due !" tiii " ?" .
? i ild not uffi " his opinion in th
case
The other four ?urors ?elected were'
!' Broadu - Powers, 625 West I 14th
Street, manage'' 0t" a wholesale, cloth?
ing establishment al 14 East Four?
teenth Street; Joseph J. Ahearn, 231
East Fiftieth Street, connected with!
the Continental Insurance Company; |
Samuel I. Kern, retired, of 520 West !
148th Street, and. John A. Kershaw,
'552 i-'n-i Eight> sixtl Street, connect?
ed wii.l the Riverside Ice Company.
A CRUISE de LUXE to the;
MEDITERRANEAN
on theFloatiii^Pal?tialHotel
IUI?S.'CARO.lS?IAi^.C?INARD line
Sailing January 15th?Infinite variety of Shore Excursions
under guidance of COOK'S organization.
mi,Une O
II, ??!?- .?'
M Hin on J! i. n in-luslv?.
Iinni." IIhi-I
THOS. COOK & SON
SU, Ilrnartwny, o,,,.'
/??/-?/... -, i;-'
Price Slashing
In Steel Begun;
Wages to Drop
i .?-_
Jones & Faughlin, Biggest
Independents, Announce
Reductions and Other
Foil ok Action at Once
Break in Market Forecast
Figures Cut to 1.919 Scale of
Industrial Board: Await
I. S. Steel Co. Policy
Sriertnl Dispatch to The Tribuna
i PITTSBURGH, Nov. 26.?The whole
; complexion of the steel market was
?changed here to-day and, incidentally,
reduction of wages in the steel indus?
try was forecast when the Jones &
I Laughlin Steel Company, the largest
: independent concern in the country,
announced a reduction in the price of
certain finished steel products, effec?
tive immediately. The price reduction
! brings the figures of certain classes of
steel dowp to what is known as rhe
: Industrial War Board's prices, estab
1 lished March 21, 1919.
i The Jones & Laughlin company hai
j for some time occupied a middle posi
! tion in the selling price of steel. With
| prices under those of. other leading in?
dependents and but a trifle higher, on
| the average, than those of the United
] States Steel Corporation, it was freely
1 predicted here to-day that every inde?
pendent steel concern in the country
will follow their lead in price reduc
; tions. This was further indicated this
afternoon, when three of the largest
independents in the Youngstown dis?
trict, among them the Youngstown
; Sheet and Tube Company, announced a
new level of prices for finished steel
' conforming to that of the Industrial
War Board schedules of March, 1?I19.
The new selling prices, formulated
by the Jones & Laughlin Company arc
as follows: Bars, $2.1.15; structural
shapes, $2.45, and plates, $2.tf5, hase
i Pittsburgh. With this announcement
, it was said that some adjustments will
he made on wire product and cold
' rolled steel, the latter a specialty for
; which the Jones & Laughlin Company
has been famous in steel circles for
! half a century.
The only reason giver, by Jones &
Laughlin for the new schedule of
! prices was the "law of supply and de
i mand."
Probably the most significant feature
: of the break in the market is the effect
it will have on the labor situation in
the steel industry. While it was def
i initely declared at the Jones & Laugh
! lin Company's offices here to-day and
among other independents that the
lowering of steel prices will have no
immediate effect on wages, information
gleaned from those who are conversant
with the situation is thut wages must,
come down?and will come down within
the next thirty days?not only among
independents but in Steel Corporation
?liants as well.
"it is inevitable that wages must
fall," said a leading steel maker here
j to-day. "The new schedule of prices
i announced by the Jones & Laughlin
Company will undoubtedly be quickly
followed by other independent?. To
produce stee] at the industrial board's
figures now means a loss. And every
one knows the steel companies can not
and will not operate at a loss.
"The delay in reducing wages is not
due to the fact thut the steel companies
do not believe it an absolute necessity
if they are to produce steel at a profit,
but to the fact that they believe the
Steel Corporation, which took the lead
during the war in making frequent ad?
vances in wages, should now in justice
to the other concerns take the initiative
in lowering them to a fair basis.
"The fact is that nobody wants to b?
the first to announce a lowered wage i
scale, although it is generally known
in the steel trad" thai with rr'<-"'"'~ 'n
; the principa! finished commodities
down to the level of the industrial
i board's schedule, and wages and other
i items of cost reduced, the long and
anxiously awaif : readjustment in the
, steel trade '?ill be over. The industry
.will start forward on a new era, with
prospects of n ire . ? ? ' business for the
next several \ lars, owing to the delay?
ing bu gram of tl e countrj.
the vast and immediate needs of the
railroads md the stimulus which the
settleme it < I the - eel industry to its
bottom level will give all industries
??; ui?h ?? teel products."
VV.ige Cut? by January
Pressi '? for a more explicit state
.thi date and probable amount
of the wage reductions, the informant
said: "I should say that the cost of
producing steel will be greatly reduced
within the next few weeks. Py the
middle of January wage reductions and
other elemental costs should be in full
effect."
"Are you prepared to say npproxi
matelj whaf these wage reductions will
average among indep. ndents and steel
corporation plants?*' was the next
. question.
"No; 1 am not. A basis already has
been considered by several of the Iarg
e ' independents, but they are waiting
on the United States S eel Corporation
to make the ?ir^? mo\ i
It was thi n ;? >ii ted out that tht
speed> readjustmenf of the steel im
dustry now under way will result ii
stabiliz ng and readjusting other lines
of business, with the consequent low
ering of prices on all items enterinj
into the cost of living, since steel ii
regarded as the business barometer
and the inevitable result will be t.
make the dollar that steel worker
earn worth 100 cents, even though thei
pay is reduced, instead of being wortl
I -, 60 to 75 cents, as at present.
Tariff Program Planned
Leaders in the steel industry her
i are preparing to take un the questioi
of a protective tariff as soon as th
industry is settled on its new basi:
?and anticipate being ready to presen
? their c?a i to the new Rep?blica:
Congress. ["he aspect of the tarn
question has cnangecl materially sine
: the war, according to experts on th
subject here. They call attention t
i the fact that the difference in the rat
of exchange with Europe and the Ori
ent has caused a new and entirely oil
t'erent situation, calling for a tariff s
constructed as to protecf America
manufacturers and workers from bein
obliged to meet the competition c
fore mi ?i' oducf 'ran if icf ur< d at fo:
eign costs, but brought ??ere and ?o!
at prices enormously profitable whe
?converted back into foreign values.
i
i YOUNGSTOWN1, Ohio, Nov. 26.?Ii
! dependent st-el companies of tl
? Youngstown district, employing 30,0(
workers, announced : i-day thai th.
; would meet, the reduction of juices a;
nounced by the Jones & Laughlin Coi
pany, of Pittsburgh, the cuf to be e
! lectivo at once.
Heads of the three largest ind
pendent corporations here declared
readjustment in the cost of both co
and labor would have to follow. Thi
said that wherever labor costs wi
the independents were higher tiran tl
United States Steel Corporation ti
wages would have to be reduced.
Little surprise was expressed
local steel circles yesterday over ti
announcement from Pittsburgh th
the Jones & Laughlin steel Compan
one of the largest independents, hi
i educed its prices to the level mai
tained by the United States Steel Cc
poration since March 21, 1919. It
believed that other independents, i
eluding Republic Iron and Steel. Mi
vale, Lackawanna and Bethlehem, w
.oon announce similar cuts.
Steel men declared yesterday tl
the plants of the country are at t
??resent time running at only 50 I
cent of normal, which means that cc
sumers have given practically all th'
orders of late to the Steel CorpOi
tion because of its more attract!
prices. In some quarters of the tra
i". is predicted that further price i
ductions will have to be followed
wa'ge cuts, as it is claimed that t
mills cannot continue operations at
profit on the basis of current wages
The .Ion.- & Laughlin Steel Co
I any is the second, independent pi
ducer to reduce its price on bars to t
Steel Corporation's level of 2.85 cer
a pound. The Inland Steel Compai
of Chicago, has for the last week
two been offering bars at that figu
r [though f< r : he smaller sizes prie
I .? been held around 3 cen? - in t
i h ?cago territory.
Americanism J
Called Creed of
Ku Klux Klat?
Colonel W. J. Simmons-}
Imperial Wizard of thq
Order, Gives Its Prin?
ciples and Its Purposes
Denies Raee Prejudice
Respect for I,a-*v Is One
of Its Chief Tenets, De?
clares Southern Chief
In respong? to a reques" from Th*
Tribun* for an outline of the aims and
purposes of the revived Ku Klux
Klan, Colonel William Joseph Sim?
mons, head of the order, teleg-raph- <?
the following ta*t night:
NEW ORLEANS, Nov. 26.?Answer?
ing your request for a statement from mo
concerning the purpose!? of the Knights
of the Ku Klux Klan, I beg to say that
| the prime purpose of the organization is
1 to develop Christian character, practice
an honorable clannishness. protect the?
? home and the chast'fv of womanhood and
j to teach, inculcate and exemplify an un
| selfish patriotism toward our glorious
country, and to preserve and to proclaim
the original and fundamental American
, ideals and institutions and to strength
I en the power and prestige of the agen
- c?es of justice and order by inducing
! men properly to respect the majesty' ol
the law. To maintain the peace and
: security of the people, even in the ab
1 sence or inadequacy of the forces ol
: law and order.
"The organization is non-sectional
! non-partisan, non-political and non-sec
i tarian, and the extent of its organize.
i forces is as broad as the territoria
j jurisdiction of the Stars and Str.per
; and the purpose of its existence i
: everywhere the same. U never swerve
? from its purpose on account of see
i tional prejudices or local problem?
' Being the offspring and legitimate prog
eny of Anglo-Saxon civilization an
fundamental American principles, i
j neither fosters nor condones an
, propaganda of religious intoleranc
; or racial prejudices, as it stands fo
religious liberty and the rightful sel
fing and functioning of the races <:
?all the world.
"It is a standard fraternal orde
duly incorporated and legally recoi
niz d. and its purpose and practici
achievements have already vindicate
its right to live and establish its plac
in the world. It is neither emba
rassed nor intimidated by adven
critic sms bom of ignorance ai;
prejudice. Neither does it court tl
plaudits of the populace, for, in tl
sincerity of its faith and practice, tn
' to the legend of its lineage, witho
j clamor and without boast it faces du
1 without fear and without reproach.
| trri's it falters not, or ever fails; ai
; meeting the behest of solemn duty
all the relationships of life and du
. it makes no apology and seeks i
? praise.
"Colonel William Joseph Simmons,
"Imperial Wizard,
"Knights of the Ku Klux Klar
.Test for Anti-Cigarette I^a
U. S. Supreme Court to Dec'u
on Kansas Measure
TOPEKA, Kan., Nov. 26. -The Kans
anti-cigarette law will be tested I
| fore the Supreme Court of the Unit
i States, attorneys announced to-d
! when the State Supreme Court allow
a writ of error, which permits an ?
? pial to the Federal Court.
Immediately following the State S
! preme Court's decision several wee
j ago, upholding the law. Miss Lu
I Page Gaston, of Chicago, represent
; tive of the National Anti-Cigaref
League, began a campaign in the st*
to have the law enforced. Local <
ficers have conducted raids, confisci
ing cigarettes and prosecuting vend.
in various parts of the state, aceordi
to reports received by Richard J. He
kins, Attorney General.
Sdks & Company Announce for Saturday
A Very Special Presentation of
$5.95 Wonder Hats
?EVERY ONE NEW?VERY SN?ART
UNEQUALED VALUE!
AND AN
XJAVE you scon SLYNX?the soft furry
A. A. grcv skin like curly lamb's wool? It's
(lie very newest t rimming- and usually quite
expensive. Rut you can have it in tin's Russian
Cossack turban pictured, with top of cire satin
and facing of grey slynx, or in a host of small
brim models in the collection o?'$5.95 Wonder
Hats presented for Saturdav. Other styles
are to be had in ojea mini?; silver-embroidered
satin, the riebest o? faille silks, or all satin
with flirting sashes of Georgette Crepe.
RROADWAV
??nks &<?m!f ??muy
AT -.4th STREET