Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1918-06-18
Department of Justice
Charges Agents Obtain
Commissions Illegally.
NATION WIDE RAID MADE
Hundreds of Manufacturers
Offices Entered and Papers
Are Seized.

WASHINGTON, June IA ma
wide conspiracy between man
ufacturers and contractors agents
in washington to solicit government
war orders under an agreement to
pay commissions illegally. to the
agents. was disclosed today by the
department OF justice. Simultan-
eously with the announcement raids
were made on hundreds OF manufac-
turers' business offices throughout
the United States in search OF pa
pers showing the scope Of the Illegal
practice. and four Boston business
men were indicted in Washington on
charges OF acting as contingent fee
agents. Officials indicated they had
evidence that perhaps hundreds or
contracts have been made with man
ufacturers who were under pledge to
turn over to contract commission
agents, 10 Washington. New York
and elsewhere, a percentage OF their
profits.
Officials said the manufacturers
were led to enter into the agree
ment by assurances of the agents
that they had special influence with
army officers or others in charge Of
letting contracts and under threat
to use that influence agalnst the
manufacturers,
Rakcr and Daniels Investigating.
This development led to investiga-
tion Of the relations between Ger
tain army officers and these agents
and although there is no definite
indication that these officers are
knowingly involved in the ocnspira-
cies, Secretary Baker Is making a
thorough investigation in co-opera-
tion with the department of justice.
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.
The guilty commission agents Will
be prosecuted under conspiracy stat
utes and all contracts made by them
or with their aid are subject to an
pnulment by the government kami-
fications OF the plot may develop as
reports trickle in from the dramatic
raids prearranged for 4 o'clock thi;
faftcr1ruon, eastern time, when secre
agents of the department of justice:
bureau OF investigation entered Of.
fices of several hundred business
firms and spent several hours going
through letter files and searching for
documents which might shed light
on contingent fee contracts. Eleven
offices in Washington were raided al
the same time, and a great mass OF
papers and contract agreements were
carried away.
Raids in MANY Cities.
Half hundred other cities In
which raids were made include New
York. Boston, Washington. Chicago,
Brooklyn, San Francisco, Phila-
delphia and st. Louis.
1t was officially announced that
the men arrested in Boston were
detected in their negotiations with
b. A. Bitten, president Of the quaker
City Rahcoat company, Phila-
delphia. who worked with govern
ment agents in gathering evidence
against them They were arrested
In Washington recently and now are
at liberty under bond. The govern
ment will make their cases a test
case before taking action against
others suspected of similar tactics.
Most OF the raids today were in
the east and a large proportion in
New England. only the offices OF
the firms suspected of having en-
tered into contingent fee agreements
were entered. Officials pointed out
that many OF these may have made
the arrangements without realizing
the Illegal nature, despite warnings
issued early in April by the depart
ment OF justice.
The direction Of the campaign OF
detection of these contracts during
the past few weeks has been in the
hands Of Assistant Attorney General
Huston NJ Thompson.