Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-07-23
us. ACENTSHELD
NRUBBER FRAUD
Supervisor of Raincoat Pro.
duction Arrested on
Charge of Bribery
INSPECTOR IN CUSTODY
By the Associated Press

Agencies of the Council Of National
Defense were involved today in the ma
tion-wide conspiracy of alleged bribery
and graft in the manufacture Of SOL
diers' rubber raincoats through the ar
rest Of Harry T.. Lazarus. a member of
the defense councils subcommittee SUI
pervising raincoat production. He is ac-
cused of attempting to brbe a Govern
ment 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 confessed full details
of the workings of an extensive bribery
system in connection w.th manufacture
of raincoats and ether soldiers clothing
These were the first OF a series of
sensational developments promised as
sequel to the arrest last night OF seven
teen raircoat manufacturers on bribery
fraud or conspiracy charges. and the
confession of a number of contractors
and quartermasters' department inspec-
tors
Bribery Is Charged
Lazarus, a wealthy clothing manufac-
turer. was 4 member of the defense
councils committee. which advised the
War Department what manufacturing
plants were equipped properly TO make
raincoats and aided in placing these
contracts. After he obtained contracts
fer his own plant. il is charged he sought
to give money to a Government inspec-
tor. who was expected approve mate
rials and workmanship not up to the
propcn standards.
Future developments will show, II is
said. that others of the numerous sub.
committees of the defense council had
members who used their position to get
special favors. All evidence uncovered
will be presented to n Grand Jury
shortly
Got Weekly Allowances
Fuller. the chief inspector confessed
that he received weekly allowances from
several contractors. it was announced
by Assistant Attorney General Huston
Thompson. who is directing the cam
paign against fraudulent profiteers.
Similar payments also were made to
subordinate inspectors. at least one of
whom received more than $500 in the
last three weeks.
The accused raincoat makers were
held in bail. ranging from $4,000 to
$4,000 each, when arraigned today
Their examination was set fer July 30,
Those arrested are:
Felix Gouled, wealthy clothing man
ufacturer. who is charged with acting
as go between" for other contractors
and with seeking to solicit contracts un-
der the Illegal contingent fee system:
Joseph Sydeman. William Sydeman and
Joseph Dood. of the Sydeman Rubber
Company; Ralph Cohen. of the York
shire Manufacturing Company: Ralph
Rosenthal. of Haneur & Rosenthal; AL
fred litter, of the Automobile Raincoat
~ Erie
perm, of the 1nterborough Raincoat COM
pany Polly Clamons. OF the Manchester
Waterproof Coat Company; |. NJ. Hal
perm, of the National Cement Com
pany: simon Harris, of the Harris RAIN
coat House: Morris Lesser. of Lesser &;
Stenge Joseph Pines, of the Pines Rub
ber Company, and l.. I. II. Yellin, of
the Eureka Rubber Manufacturing
Company.
B. A. Bittan. of the Quaker City
Raincoat Company, 425 Market street,
is believed to have been chiefly re-
sporsible for setting the Department of
Justice upon the trail of the "raincoat
grafters.''
Mr.. Bittan. according to his story,
was in negotiations with group in
Washington and became suspicious all
was not right in their actions. He il
known to have carried the matter to
the authorities. with the result that
many arrests were made in various sec
tions of the country at that time; sew
eral weeks ago.
In running down evidence the Gov
ernment agents found the trail led to
Boston and Philadelphia. where contin-
gent-fee agents operated extensively by
the telephone-conversat method. 1t is
understood a number of persons in those
cities now are under surveillance