U.S. SHIPPING GRAFT

Hawke's Bay Tribune, Volume XXV, Issue 159, 21 June 1935, Page 8

U.S. SHIPPING GRAFT

Charges Watered Down WASHINGTON, June 19. Under direct questioning Air Ewing Mitchell seriously qualified his charges of malfeasance, although at one stage in -to-day’s hearing before the Senate committee he asserted that President Roosevelt personally ordered the approval of an agreement with tho International Alercantile Alarine Corporation, whereby the Leviathan was withdrawn from operation, representing a “plain attempt to make a gilt of 1,720,000 dollars of the Government funds to Vincent Astor, Kermit Roosevelt and P. A. S. Franklin.” President Roosevelt, at a Press conference at White House, declared that he had approved of the retirement because it was silly to require the operating company to take the loss if it were agreed to apply the amount of that loss to the construction of new ships. Air Alitchell, during testimony, was compelled to admit that he had no evidence of direct bribes, and insisted that he had alleged only the appearance of corruption. “Despite an extensive congressional investigation into Government regu- ' lalions relating to tho shipping Indus- ; try, favouritism, graft and inefficiency I abound within tills and other branches i of the Department of Commerce.” Thia sensational charge was made to President Roosevelt on Monday by Mr Ewing Alitehell, who on Saturday was removed from tho position of assistantSocretary of Commerce in charge of the air, and water transport sections. He said that loose Government financial aid practices to private steamship lines

continued. United States lines were allowed to iako the Leviathan out of service after several million dollars in subsidies had been paid with a contractual premise to keep it in service.