New-York tribune., 1918-03-03
Relations With Quartermas-
ter's Department Proper,
Says Elder Defendant
Papers Seized in Raid
Gen. Cruise Had Retired Be-
fore Becoming Washington
Agent, Is Statement

CHICAGO, March ,. Henry II. Lip
pert and his son, Ralph H. Lippert, who
were arrested last nicht on charges Of
eonspirins to defraad the government
in the furnishing Of army supplies. and
with whose case has been linked the
name Of Brigadier General Thomas
Cruise, U. S. y. we're admitted to bail
in bonds of $4,000 each today. Ar
raignment was set for March -. and
while awaiting arrival Of sureties the
elder Lippert discussed the charges.
"The wrong construction has been
placed on my relations with General
CEslse and tie Quartermaster's De-
partment," he said. Il have known
General Cruise for fourteen years and
have always found him an upright gen
tlemaa and a real soldier.
4 have handled contracts for army
supplies in the neighborhood of 81 ,00o,-
COO, bat I obtained them on the basis
Of the lowest competitive bids. Fur
thermore, General Cruise had retired
from the army when he became nv
agent. And he obtained the consent
of the Judge advocate General to
become our Washington agent, He
dId nothing in our interest and
had no opportunity to do anything
Until after he had retired from the
Guartermaster's Department. I will
prove at the proper time that our re-
lations have been entirely honorable. +"
Expects Call to the Army
The younger Lippert, who is twenty
two. years DID, is expecting an early
call to service in the National Army.
He has been a travelling agent for his
father.
Before Commissioner Mason it was
charged by Captain Melville B. Ericsson,
of the Army Intelligence Bureau. that
General Csuse had admitted to him in
Washington that in January he had
received $500 from the elder Lippert
and that an agreement had been en-
tered into by which Lippert was to pay
him $500 a month.
4 large number of papers were taken
by the deputy United States marshals
who conducted the raid. Federal off
Gals said that in some Of these papers
names Of officers in the army, and of
men prominent in public and business
life were mentioned, but that this did
with any alleged illegal deals.
Among the papers sought by the
Federal authorities and specified in the
warrants are:
Letter dated September 1. 1916. to
Senator James Hamilton Lewis, Wash
lngton, regarding promotion CT Lang
horne Alien and appointment Of ]. ".
Sallady as chief inspector Chicago
quartermaster's department.
Nn4o l.
grams regarding julius Rosenwald,
particularly contents in private
lock box in Room 403. Security
Building zone OF Lippert suite).
Visit of General Cruise Mentioned
and from f. L. Erickson, Nlited states
Arsenal. St. Louis, Mo. and one in
regard 20 the visit of General Cruise
TO the arsenal
Check for s4.7oO mentioned in tele
gram from Ralph to Henry Novem-
ber /, 1917, Henry then being at the
New Willard Hotel, Washington.
Memoranda of Captain Goetz, ini-
tialed "R. B. p" lieutenant colonel.
quartermaster's department, jefferson
Vile. Ind
Letter dated January 8, 1918, from
Thomas Cruise TO II. II. Lippert, Chi
cago. and schedule on 10000 white
blankets referred 20 in letter.
Ihe Federal search warrant charges
that certain felonies have oeen con-
mltted against the United States; that
IS to say, the felony on the part Of
Henry H. Lppert and Ralph IL. Lip
pert. OF aiding and abetting Thomas
Cruse, brIgadler general, [. {. A, to
commit the ofense Of receiving and
agreeing to receive compensation for
services rendered, and to be rendered.
by hiEl, In relation to contract in
which the United States was party. y
Most OF the contracts handled bv
the Llpperts were for woollen blankets