The Detroit times., 1912-05-18
PROSECUTOR SAYS ONE
yADNIsH FIRM ALLOWS
AGENTS BIG aSlUsH' FUND
Affords Opportunity For Bri-
berry BY Asking No Details
Of Expense Accounts
NO NAMES MENTIONED
Recommended That Charges
Against r. Brown and B.
Baumhackel Be Dismissed
NO NAMES MENTIONED

Assistant Prosecutor Charles JAS
nowsh appeared before Justice Stein,
Friday noon, 10 formally submit the
report OF the grand jury investigation
into the system OF alleged bribery or
Studebaker corporation employees and
others by paint and varnish agents
The report, lengthy one, recon-
mends that the bribery cases against
Robert Brown, OF the Acme White
Lead works. Detroit, and Charles
Baumhackel, OF the Forbes Varnish
works, OF Cleveland, be dismissed, for
lack OF evidence, and makes other rec
ommendations. decrying the practice
or giving emoluments for the purpose
Of getting the business"
Justice Stein said that he wanted
time 10 thoroughly digest the long
nounced that he would give out his
fndings, Tuesday.
The report says in part:
I'm the majority OF cases II was
found that corrupt practices In the
selling and buying resulted rather
from the ayarice of the finishing fore
man, superintendent or purchasing
agent than from the sales agents en-
ever these nefarious practices are
successfully carried on, the blame. to
large extent, should also be placed
on the officers of the concerns pur-
chasing paint and yarnish. as well as
upon the men actually receiving the
bribe
.In the particular cases under in
vestigation, namely, that OF Robert
- - ~
hacked. il has been found that these
men heretofore have enjoyed excel
lent regulations, but that their accus-
ers. Charles Holcomb and Fred Fritz
rem. are men whose standings and
general regulations are such that their
Testimony would not be sufficiently
convincing to justify the continuance
OF further serious consideration OF
this matter, baked solely upon charges
made by them.
ct has also been revealed IN the |
course OF this inquiry, that the ON. !
GERS OF the YStudebaker corporation
brought to the attention Of the proper
authorities the evidence which led to
the prosecution of Robert BrcwG and
Charles Baumhackel in good faith,
and without any feeling of aninosity
AGAINST the parties concerned.
From the testimony adduced, II Is
evident that the sales agents OF al
least one manufacturer of paint and
xarnish operating in Detroit, are ar
der no obligations to render an item
lied ..expense account TO their en-
ployer. and that the amount OF their
said expense accounts Is only limited
by certain percentage of the gross
sales made by such agents, during
the period OF a year, and so long as
said expenses do not exceed said per-
eentage, the account is not subject 10
audit or inquiry. 1t has been estab-
lished also that the percentage IL
sufficiently large to allow sales agents
y 70 have at their command at all times
fund that would permit OF the sub
sidizing OF finishing foremen and
other employees without the employer
necessarily becoming cognizant there
or. II seems entirely improper hat
an employe OF any concern should be
allowed so large sum of money with
out giving to his employer a detailed
statement OF its use. Any system OF
accounts which places in the hands OF
the salesman, who is daily subjected
TO all the temptations of keen bust
ness competition, the unrestricted use
Of fund of this kind, which he can,
IL he so desires, use for illegitimate
purposes, cannot be too strongly con-
demned.
"Although It has developed in the
course of the investigation that graft
has existed quite generally, and money
has been used quite freely by paint
and varnish statesmen in an effort TO
secure and hold business, yet there
has not been sufficient proof addueed
OF any particular act OF bribing or
grating to justify a recommendation
for the issuing OF warrants or the
holding of any particular person or
persons for the same"
In the recommendations TO the
court. appears the following:
THAT the Studebaker corporation
IL TO be commended for It's vigilance
In bringing to the attention of the
proper authorities the facts in their
possession indicative OF efforts IL cor
rnpt their employees, which, In many
instances. have actually resulted in
corruption."