Evening star., 1918-07-23

LAZARUS ARRESTED
IN NRA|NCOAT FRAUD
Defense council's subcom-
mitteeman Accused Of
, Bribe Attempt.
II HELD IN NEW YORK
y !. ltEz
III HELD IN NEW YORK

BY the Associated Press. q
NEW YORK, July 23s--AEefeies Of
the Council Of National Defense we're
involved today in the nationwide con-
spirasy, disclosed last night, of alleged
bribery and graft in the manufacture
Of soldiers rubber raincoats through
the arrest Of Harry E. Lazarus, q
member of the defense councils sub
committee supervising raincoat pro-
duction. He is accused Of attempting
to bribe q government inspector.
Department of Justice agents also
took into custody Charles L. Fuller
chief government inspector for the
New York manufacturing district
and 1t was announced he had con-
fessed full details Of the worktngs
Of an extensive bribery system in
connection with manufacture Of rain
coats and other soldiers clothing.
|, Other arrests are expected as q re-
sult Of Fuller.s disclosures.
Methods Revealed,
Mathods by which Army raincoat
manufacturers conducted systematic
bribery Of Army ofncers in order to
/ All war Department orders with Inn
perfect articles were revealed today
bv Deuartment Of Justice agents fol-
Iowinr the arrest Of seventeen ofncsrs
or employees Of the manufacturing
concerns.
a nrrnhey of Army oflcers are under
Investigation and evidence against
them has been presented to the War
Department ,,,.a n,,v
IN raincoat manufacturers and to the
diatrict of New York, government
aasnte have information leading them
Ia believe that the system OF fraud
| il widespread and involves millions
Of dollars In contracts.
/ Men Accused Of Bribery.
Tho majority Of the seventeen men
now IN custody here are charged spe-
cincalIy with Offering bribes Of small
sums to inspectors for the quarter
masters department or government
agents acting as decoys In seturn for
recommendations on rain
cat. uninspected. Thousands Of
these coats were carelessly made and
fell 10 pieces shortly after being put
into service by soldiers in France, It
iss said. Others of the manufacturers
are accused OF seeking to pay sums
to oficers in washington to obtain
contracts.
Seventeen Taken N Custody.
,,,r.nt,nc,es involving bribery and
ernft in Connection with army con-
Tracts for rubber raincoats sent to
.a,d,.rs IN France were disclosed last
rsrhf nv Department Of Justice of1-
cssia simultaneously with the arrest
~ aaventeen officers and employees OF
0fteen manufacturing companies In
Nsw york and Brooklyn on charges
! Of bribery, fraud or conspiracy.
individuals Under Arrest.
Tnose arrested were: .s.si
Teifx Gouled, q. wealthy clothing
lmanufactnrer Who Z: cnsrgsd Win
- ctors ana with seeking TO solicit
lcnnfracts under the Illegal contingent
- Evnfeun: Joseph Sydenaz1. William
sydefnan and Joseph Wood c1 tie
tavdeman Rubber Company, Ralph
Cohen Of the Yorkshtre Mannfactur.
~ Tsne,sSr q Rose1thaI Alfred ziftAi of
fhe Autouobfle Raincoat Company.
fno. Louis Fried and s. Ha1peru Of
fhe Interb0rough Raincpat. Company,
Poifg Ciamons.oft the Manchester Wa-
ferrroof Coat Company. Il NJ HAipeen
q the National CAment Company,
tSirnon Harris Of the Harris Raincpet
Houee; Norris Lesser Of Lesser u
lEteugA Josepf Pines Of the Pines
rubber Company and Il + n Yedlim
81 sfhe Eureka Rubber Mauufhctufjnx