New-York tribune., 1918-06-18
Indictments in Washington
Followed by Raids in
Many Cities
Big Fees to Agents
For Getting Orders
Department of Justice Had
Warned Manufacturers
of Illegal Practice

WASHINGTON, June ia nation
wide conspiracy between manufacture
ers and contractors agents in Wash
ington to solicit government war or
ders under an agreement 20 pay com
missions illegally to the agents was
disclosed to-day by the Department of
Justice.
simultaneously with the announce
ment raids were made on hundreds
of manufacturers business Offices
throughout the United States in search
of papers showing the scope of the il
legal practice, and four Boston busi-
ness men were indicted in Washington
on charges of acting as contingent fee
agents.
we're reported fully here tonight Off
cals Indicated they lad evidence that
scores, perhaps hundreds, of contracts
have been made with manufacturers
who were under pledge to turn over
to contract commission agents in Wash
lngton and New York and elsewhere
percentage of their profits.
Thousands Made in Fees
Officials said the manufacturers were
led to enter into the agreements by
assurances of the agents that they had
special influence with army officers or
others in charge of awarding contracts
and under threat to use that influence
against the manufacturers. Evidence
Sp IN hayo ri htaI hot
some of the agents already have made
many thousands of dollars in commits
sion fees.
This development led to investiga-
ton of the relations between certain
army officers and these agents, and, al
though there is no. definite indication
that these officers are knowingly in
Vowed in the conspiracies, Secretary
Baker is making thorough investiga-
ment of Justice, and tonight author
lzed the statement that he would go to
!, the bottom of any suspicious cases.
Secretary Daniels also is keeping in
close touch with the investigation, and
the whole situation has been called to
the attention of President Wilson and
his Cabinet.
Contracts May Be Annulled
NHc SouiHiloSiOn agents guilty. OK
these illegal practices will be pro-
secuted under conspiracy statutes, and
az contracts made by them or with
lneir aid are subject to annulment by
The government.
Ramfications OF the plot may lead
soon to other disclosures as sensa-
honal as those of day. These may
develop as reports trickle in from the
dramatic raids prearranged for A
o'clock this afternoon, Eastern time,
when secret agents of the Department
OF Justices Bureau of Investigation
entered Offices of several hundred bust
ness firms, showed their badges of
authority and spent several hours 60
ing through letter files searching for
documents which might shed light on
contingent fee contracts. Eleven of.
hees In Washington were raided at the
same time, and great mass of papers
OF contract agents was carried away.
Raids in Many Cities
Other cities in which raids were
made include New York, Boston, Wash
inagton,. Chicago, Brooklyn, San Fran
yyurgh st. Louis, Cincinnati, Cleveland,
Toledo, Columbus, Ohio; Detroit, Mil
wsukes, Minneapolis, Providence, Buff
lsio r Hartford, Conn; New Britain.
\ SSonn.; Niagara Falls. Portland. Me-;
y aochester, Worcester. Mass; Akron.
Vhlo; Albany, Alexandria, Va; Ann
ansoor, Mich; Bordentown, N. j.; Bra
~. Ind; bridgeport, Conn; Burling-
SsSn, Vt; Camden, n. j.; Canton, Ohio;
bury, Conn; South Easton, Mass; East
rochester, N. Y; Euclare, Wis;
Issrmingdale, N. j.; Flint, Mich: Free
eom, Penn; Fullerton, Penn; Hagers-
wscwn, Md; Harrison, N. j.; Holyoke.
pass; Jackson, Mich; Kingston, N. Y;
asncaster. Ohio; Lockport. Ill.,; Meri-
ddsn' Conn; Middletown, Conn; Mid
Nsspwsn' Nsspwn' Penn; Monroe, Mich;
Nassds' Nasssd,ss' n. H.; Newtonyille, Mass;
Nj Pensacola. Peru, Ind; Saratoga.
u; T.; Savannah, Springfield. Mass:
s'sn&m. Mass. and Windsor, VT.
Four Indicted at Capital
At almost the same hour that the
i1sos We're made Federal grand iury
| Washington returned indictments
i gang conspiracy to obtain contracts
aaasr the illegal contingent fee plan
ssnss ns John Fleming. former Water
sslSner sSanausslSSn rS1.ra Of s0stsni sni,,v John r
,vsepn kohn, all of Boston. These
s"sa. u Is charged, worked together in
mysterious involved manner, persuad-
MI NJ manufacturers to pay them COM
rsns SsIons on contracts they obtained,
srpa.nssent!ng that they had special in
6ss.s with certain unnamed army Of
sns;.. ;s. ane In some cases actually pro-
thsir {ees. - gu" 's'e'SinS
~ sAs s ofiteialiy announced that these
,~a Mesc detected in their negotiations
s
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