American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1918-06-21
INDICT FOUR FEDERAL
EMPLOYEES FOR GRAFT
Army and Navy Department Men
Charged With Planning to Collect
on Duplicate in Amount OF SIS. 900.

Charged With Planning to Collect
on Duplicate in Amount OF S1S7.O0O
Employees of the war and navy de-
partments yesterday were drawn into
the net set by the department of JUS
tice for war contract brokers, through
indictments returned by a federal
grand jury charging four men with
trying to collect on a duplicate bill
for SlS7, 600 submitted by a drydock
company for repairs to a government
vessel. The case does not involve
contingent fee brofteers. but grew
out of the investigation into their
practice
The four indicted are Clyde c. Walt
man, yeoman in the navy DEPART
ment's bureau of supplies; Charles E.
Waltman, his brother. a business man
of Victoria, Va. Benjamin W. Peake,
a soldier stationed at Fort Meigs,
Washington. formerly at Berea, " c.,
and d. Malvin Mowrey, a stenogra-
pher employed in the signal corps Of
flee, formerly of Lancaster, Pa.
With free access to navy depart
ment files, Clyde c. Waltman and
Mowrey were said to have obtained a
bill for S1S7,OOO rendered by the
Morse Drydock and Repair company
of New York, for repairs to the gov
ernment vessel Canandaigua. After
the bill was alleged to have been taken
from the files the company was told
il was lost and was asked TO submit
a duplicate. which was paid. Before
the men presented the original bill
for payment they we're arrested.
The scheme failed, it is said, be-
cause the men tried through Peake to
get in touch with a confererate in
, offices of the drydock company, and
an unnamed soldier who heard of the
plot informed the government. Charles
, Z. Waltman became involved through
? some correspondence with his broth
er on the subject. All four men have
p been arrested and released on bail.
The significance of the disclosure,
e officials explained, lies in the suspi-
E cion that similar attempts to defraud
T. the government may have been plan
e ned by others, who are expected to
D take warning from the detection OF
S this alleged conspiracy.
e Definite proof Of specific payments
ItO NOANlENnl ANN oENhAa was eoNAtA 10
by Assistant Attorney General Hus-
n ton Thompson from records seized by
= secret agents in the raids Monday on
i these agencies headquarters in Wash
h ington.
2 AS a corrective measure, Attorney
d General Gregory is planning to ask
heads of departments letting contracts
"a TO assist in coordinating their con-
I, tract work This is not expected tC
II change radically the system of plac-
- ing orders. or 10 result in formation
: of a central government purchasing
n, agency. but it may have the effect o.
~ eliminating much of the secrecy now
- surrounding many war department
a. contracts
~ Close scrutiny of all shipbuildin!
~ contracts has been under way al th'
- shipping board for two months, unde
- the direction of Miles Dawson, a law
yer of New York. who was associates
with Charles E. Hughes in the insur
oe ance investigation. Commission agent
y undertook to negotiate some contract
+ for shipyards. officials said, and
u general overhauling Of details of a.
10 contracts was decided upon to max
5 certain that they complied with tn
law.