Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1918-06-18
Manufacturers and Contrac-
tors Agents in Pact to Pay
Commissions Illegally to
Latter, 1t Is Charged.
ARMY OFFICERS MAY BE
IMPLICATED IN SCHEME
There Is no Definite Indication
That They Are knowingly
Involved, But Baker is In
vestigating Matter.
RAIDS MADE YESTERDAY
IN MANY LARGE CITIES
Department Of Justice Men
SWoop Down Upon Hundreds
of Business places in Their
Efforts to Obtain Data.
Jay MORNING JOURNAL SPECIAL LEASED wrsrI

ltr hONhiNS JOURNAL SPECIAL LEASED
Washington, June IA nation =
wide conspiracy between manufactur-
ers and contractors agents in Wash
tngton to solicit government war or
ders under an agreement to pay COM
missions illegally to the agents was
disclosed today 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 illegal practice, and four Boston
business men We're indicted in Wash.
lngton on charges of acting as con-
tfiIsent fee agents.
Even before the result of the raid
was fully reported here tonight of
flcials indicated they had evidence
that scores, perhaps hundreds, of con-
tracts have been made with manufac-
turers who were under pledge to turn
over to contract commission agents in
Washington, New York and elsewhere
Il percentage of their profits.
Officials said the manufacturers
were led to enter into the agreements
had special influence with army Of
ficers or others in charge of letting
contracts and under threat to use that
influence against the manufacturers.
Evidence was said to have been Sc
cured that some of the agents already
have made thousands in commission
fees.
Army Officers Implicated?
This DEVELOPMENT led to investiga-
tion of the relations between certain
army officers and these agents, and
although there is no definite indica-
tion that these officers are knowing
ly involved in the conspiracy, Secre
tary Baker is making a thorough in
vestigation in cooperation with the
department of justice and tonight au-
thorized the statement that he would
go to the bottom of any suspicious
cases. Secretary Daniels Is Keeping
in close touch with the investigation,
The situation has been called to the
attention of President Wilson.
The commission agents guilty Of
these illegal practices will be prose-
cuted under conspiracy statutes. and
all contracts made by them or with
their aid are subject to annulment.
Ramifications of the plot may lead
shortly to other disclosures as sensa-
tional as those of today. These may
develop as reports trickle in from the
dramatic raids prearranged for
O'Clock this afternoon, eastern time,
when agents Of the department or
justices bureau of investigation in
more than seventy cities entered off
ces of several hundred business firms.
showed their badges of authority and
spent several hours going through let
ter files searching for documents
which might shed light on contingent
fee contracts. Eleven offices in Wash
and a great mass of papers of contract
agents were carried away.
Cities Where raids were Made.
Other cities in which raids were
made include New York. Boston, Chi
cago, Washington, Brooklyn, San
Francisco, Jersey City. Philadelphia.
Pittsburgh, st, Louis, Cincinnati, To-
ledo, Columbus, o., Detroit, Milwau-
kee, Minneapolis, Providence, Buff
falo and Danbury, Conn.
Al almost the same hours that the
raids were made a federal grand jury
in Washington returned indictments
charging conspiracy to obtain con-
tracts under the illegal contingent fee
plan against John Fleming. former
water missioner of Boston; John
r. Cavanaugh, Eugene Sullivan and
Joseph Kohn, all of Boston. These
men. il is charged worked together
in mysterious involved manner, per-
SusIulnS -.@HSIS~.oCroN S@~l~rs~,Sc~rS<s,
(Continued on roge Two.l