SHIPPING BOARD OFFICIAL RESIGNS.

Star (Christchurch), Issue 18338, 15 December 1927, Page 4

SHIPPING BOARD OFFICIAL RESIGNS.

CHARGE OF GRAVE IMPROPRIETY MADE. By Telegraph.—Press Assn.—Copyright. Aus. and N.Z. Cable Association. W ASHINGTON, December 13. The United States Shipping Board adopted a resolution cancelling contracts between it and Swain and Hoy, managing agents in America of the Aus-tralian-Oriental Line, which operates several vessels between Australia, New Zealand and the United States, on the ground that Mr W. S. Hill, one of the Shipping Board commissioners, accepted a loan on note from Swain and Hoy. Mr Hill resigned yesterday and President Coolidge immediately appointed a successor. The resolution states: "In the opinion of the board the offer and the acceptance of such a loan constitutes a grave impropriety.” The board announced that a choice of new agents is to be made immediately. Mr Hill issued a statement that he never dreamed that the loan would be improper, and was extremely surprised when he learned that the agents of the Department of Justice were investigating the matter. A message from San Francisco says that Mr Robert Weyne, president of the Australian-Oriental Line, said that he merely endorsed the note and had nothing to do with the loan otherwise. “ I am more than astonished at the cancellation. The ships, of course, were going on sale next month, and we do not lose their operation.”