Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1918-02-21
EIGHT CLOTHING
MAKERS INDICTED
Charged With Completely in
Extensive Army Cloth
Frauds.
Supplies Worth Approximately $5,0O0,-
900 Said to Have Been StoIen-Three
Others Implicated in Nationwide
Plot Uncovered by Federal Agents
Louis Dawson, Arrested Two Months
Ago, Charged With Thefts of Cloth.

New York, Feb. 2l.--Eight clothing
manufacturers, two employees and a
clerk in the quartermasters depart
ment of the army were indicted by the
federal grand jury today charged with
being concerned in extensive army
cloth frauds.
The indictments are based on evi-
dence gathered by the federal district
attorneys office in connection with the
arrest two months ago of Louis Dari-
son. head OF the Universal Cloth
Shrinking works here.
Cloth and other army supplies worth
approximately s5.000,000 were stolen,
according to Lieutenant Barnitz. OF
the New York police force. who in
conjunction with the federal authori-
ties. Investigated the frauds.
Nationwide Plot Exposed.
He asserted that a plot Of nation
wide proportions had been uncovered
and that Investigations in other cities
probably would be undertaken.
Frank S. Roosa, United States as
sistant district attorney In charge Oh
the prosecution. said that because the
inquiry was incomplete he could not
announce yet the extent of the frauds
but that Barnitz estimates of the loss
did not seem at all out OF proportio"
inasmuch as the frauds affect army
contracts thruout the country.
Theft Of Cloth Charged.
The indictment against Dawson
contains sixteen counts and charges
him specifically with stealing army
cloth valued at $4,000.
Dawson Is one OF those accused to-
gether with Hyman Horwitz and his
son Benjamin, In business as Horw!tz
G AIuskowitz: Barnet Tietz, of R.TietH
| Company: Jacob W. Weinstein and his
sons, Abraham Pursch and Leon Lc-
vine. OF Pursch & Levine: Barney
Robinson and Maurice Allewitz ship
ping clerks In the employ of the New
York Manufacturers Company. all OF
this city, and Ira l.. Jauowsky. civil
lian clerk in the 1uartcrmasters Office
, here.
! The manufacturers are all accused
Of having received and retained army
cloth. Robinson and AllewitZ are
charged with perjury before the grand
Jury, and Janowsky is alleged to have
destroyed government receipts so as
to conceal thefts of the cloth.
Conspirators Resell "Clippin9s.'
The profiteering, which was said TO
approximate s5.0OO,000 was made pos
sible, the investigators explained. nS
tho methods in which the clotn was
cut From material which the govern
mcnt estimated would provide dozen
uniforms, the manufacturers would cut
ten or less. according to the authori-
ties, and excess cloth. known to the
trade as "clippings' would be resold'
either to the government or to other
manufacturers.
Some OF the defendants. it was said
represented that their clippings
amounted to 3 per cent. whereas they
actually amounted to per cent
| Owing to the alleged activity OF a
civilian clerk In tho army in connec-
ton with the purported pioi. ii ~nr
easy for concearment to be affected. So
bold were some Of the defendants. ac-
cordlng to investigators, that bolts OF
stolen cloth were displayed openly In
the jobbing district.
! Clippings were sold in Chicago. ST
Louis and Greenville, ILL.,, and large
quantities o fthe cloth has been re-
covered at those places. Tho manu-
facturers purchased innocently and
will not be prosecuted.