The sun., 1918-09-25
NAMES 2 OFFICERS =
IN RAINCOAT FRAUD
U. s. Agent Says He Heard
Colonel and Major Were
"In on Thing"
vAUGHAN'S ACTION Barred
Papers Seized in Raid on Man
ufacturcr's Office Van
ish, Is Report.

Daniel Davidson, special agent OF
the Department Of Justice. testified yes
terday at the trial OF Felix Gouled and
David L. Podell. who are charged with
conspiring to detraud the Government
on raincoat contracts, that he heard
Gouled declare that Col. Hirsch and
Major Schofield Of the Army Quarter
masters Department "arc in on this
thing too"
Davidson testified that on July IS and
July 10 he hid himself by prearrange-
ment In q garment closet in the office
Of the Rosenfield Ralncoat Company at
asa Fourth avenue. While there he
made notes OF a conversation between
Harry Rosenfleld and Gouled. Rosen-
field. whose low bid for a raincoat con
tract on March 81 had been unsuccess
full, had informed the Department OF
Justice and was acting under instruc-
ton from Charles b. Brewer, United
States Attorney.
Division of spoiI..
Davidson testified that Rosenfield COM
plained to Gouled that he had been I'M
able to get a contract and could not live
va 40 ulltS, aCCOTulnk 10
Davidson, Gouled replied:
you will be taken care OF. Col
Hirsch and Major Schofleld are in on
this thing too. Col Hlrsch gets Is cents
garment and I get per cent. but
that does not show in the contract"
Gouled's proposal. according to pre-
ceding witnesses, was for the forming
Of a partnership to execute the Govern
ment contract he said he could get for
Rosenfeld. The partnership was to be
a fifty-ffty arrangement between Gouled
and Rosenfield as to investment and
division Of profits except that per cent.
OF the profits were to be set aside This
per cent. constituted the fund which
Gouled is alleged to have provided for
Capt. Aubrey w. Vaughan OF the Quar-
termaster's Department, who was IN a
position to give contracts to manufac-
turers with whom Gouled had made an
arrangement. Vaughan. a codefendant,
pleaded guilty. Podell. a lawyer. is ac-
cused of drawing contracts designed to
conceal the per cent. fund.
Davidson testified that on July IS he
overheard Gouled say. 81 am going to
telephone from your office tomorrow to
Capt. Vaughan and he will fix up things
You know that the devil is not as black
as he looks and you know there Is no
need OF you trying to be a better Catho-
lie than the Pope"
Phone Call for Captain.
Davidson said that he again concealed
himself In the closet OF Rosenfield's Of
flee on the following day when Gouled
called Capt Vaughan at Washington on
the telephone.
Under cross-cxamnation by Martin
W. Littleton. Gouieds counsel, Davidson
said that after Gouled called Washing
ton on the telephone he told Rosenfleld
that the rain coat contract was going
through, that Capt. Vaughan was "a
bigger man than ever and was going to
be made a Major."
The witness said that Gouled also
told Rosenfield that Gen. Pershing had
ordered new type OF rain coat on
which a greater profit could be made
because II could be made from 90 inch
cloth instead OF SO inch cloth.
And you overheard Gouled tell
Rosenfield that Col. H!rsch and Major
Schofield were In 1t too" asked Mr.
Littleton.
Yes, heard Gouled say that Col
Hirsch was getting Is cents on a gar
ment and that he. Gouled. was making
per cent. on contracts" answered the
witness.
''On what garments?"
II don't know"
And on what contracts"
II don't know"