New-York tribune., 1918-09-20
Federal Agents Get Lieu
tenant, Inspectors and EN-
ployes at Rosenwasser's
$8,O0O,00O Supply
Contract Involved
Paper Used for Leather,
Other Specifications Disre-
garded, Accusers Say


Thompson last night continued his
drive to eliminate the influence of con-
tingent fee men and fraud in govern
ment contracts when he directed a raid
plant of the Rosenwasser Brothers,
Inc, in Long Island City, which re-
suited in ten arrests and the seizure
Of the books and files of the concern.
The company has contracts amounting
tc more than sS,c0o,ooO with the War
Department, and, according to state
ments issued last night by j. Brewer,
assistant to Mr.. Thompson, more than
80 per cent of the army equipment
manufactured by the concern has been
rejected because of disregard of the
specifications.
The Long Island City concern has
been the subject of various investiga-
tions by the War Department. All the
evidence gathered, some OF which
showed the introduction of paper into
army shoes instead of leather, has been
turned over to the Department of Jus
tice and will be used in the prosecu-
tion of the present cases.
Army Officer Arrested
Those taken in custody last night
were Lieutenant Samuel Grass, of the
Quartermaster's Department, recently
transferred from a post as inspector
at the Rosenwasser plant to Governors
Island; Private George Simons, of the
National Army, who was assigned to
Grass as an assistant; Sam Schwartz,
government inspector; William Sam,
government inspector; Abe Friedman,
government inspector from the Ma
terial Central Division of the Quarter
masters Department; Abe Weiss, a
foreman; Ike Merlis, known as like
the Cutter" foreman; Louis Levy
foreman; David Lebowtch. govern
ment inspector, and Jacob Rosenberg,
foreman, who was also known as John
Rosenberg.
Warrants also are out for persons
connected with the concern and gov
ernment inspectors who are alleged to
have entered the conspiracy to defraud
the government. Leo Rosenwasser,
president of the company, had not
been found by the agents of the De-
partment of Justice late last night.
Instructions were wired to Washing
ton to apprehend Morris Rosenwasser,
who was staying at the New Willard
Hotel. Arrests in other parts of the
country are pending.
Charged With Conspiracy
All those taken in custody we're
the government in passing rejected
shoes, leather jenkins for aviators,
canvas leggngs for soldiers and spiral
puttees. The men taken in custody
we're arraigned before United States
Commissioner Reifschneider in the
Brooklyn Federal Building last even
ing and held in bail.
Lieutenant Grass, Simons, Sam and
Lebowitch were held in $4,000 bail
each, and in default of surety were
sent to Raymond Street Jail The
others were held in $4,000 each, which
was furnished by agents of the Rosen-
wasser concern.
The raid, which resulted in the ar
rests, was made by fifteen agents of
the Department of Justice, with an
equal number of operatives of the
American Protective League. They
were driven to the plant, at Orchard
Street and Jackson Avenue. by mem
bers Of the Motor Corps of America.
The factory was just discharging its
$500 employees when the raiders ar
rived, at o'clock. The men wanted
were quickly located and placed under
biles to the Federal Building and ar
raigned. Other agents were sent to
guard all outlets from the city, so
that those not apprehended could not
escape.
Evidence Not Disclosed
The nature Of the charges against
the accused was not disclosed last
night. but it was said that there has
been q repetition of the forging of
government inspectors stamps, the
passing of defective material, and the
fraudulent introduction of paper in
stead of leather into army shoes. SINH
lar to that discovered in former in
vestigations Additional evidence of
fraud has been gathered. according to
the Federal authorities, and more seri-
GUS charges are pending.
Mr. Brewer refused to estimate the
amount of thee frauds last night ex-
cept to point to the fact that the con
cern had contracts for approximately
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