Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-01-03
PROBE DEEP INTO
ARMY CONTRACTS
Senate Committee Finds Mem
bers of Defense Council
Obtained Orders.
SlDESTEP TO EVADE LAW
Profits of 100000 Annually Is
Promised on Sorted
Scraps.
SIDESTEP TO EVADE LAW
lRv Associated rrcs |


/: WASHINGTON. January Army
supply contracts given through the
supplies committee OF tho Council of
National Defense to concorus in which
committee members arc interested were
investigated to-day b. the senate Mill
tary Committee.
Charles Eisenman, vice-chairman OF
the supplies committee. and a retired
clothing manufacturer of Cleveland.
and Samuel NJ. Kaplan. OF New York,
one of the dolar-a-year volunteer
mem mbers. were the principal witnesses.
The latter's testimony was confined al
most entirely TO a contrac; with the
Base Sortin. Plant. Inc OF New York,
! in which his brother, Ira I. kaplan.
has third interest. for sorting army
clothing scraps. which was said to
promise profits of 100000 annually.
| The contract recently was cancelled
Work of the supplies committee was
highly praised by aIr Elsenman, who
said It had negotiated orders for sup
plies worth $500 100000 for the quar-
termaster-generars Office. He defended
the committees practice OF approving
contracts with firms of members. ex-
planning that in such cases interested
I
negotiations.
Senator McKellar wanted to know II
this was not an evasion Of the law, bu,
Mr.. Eiscnman insisted that the COM
mittees practice vas followed to con-
form to the law. The committee mem
bcrs. Eisenman stated, were selected
from men in the business who had
proven successful, and that contracts
with their firms were made because
full use of the country's manufacturin.
facilities was necessary
Both Eisenman and Kaplan had
| lively clashes with committee MEM
bers. .enator McKellar admonished
the latter. who emphaticaily resented
, having his motives impusned to speak
respectfully, and Senator Weeks heat
ed!y declared he was about as impu-
dent man" as he had ever seen.
Statements of Quartermaster-Genera
Sharpe regarding shortages Of army
Clothing due to failurero7rsceive .loth
| ordered through the supplies committee
were squarelS contradicted by Eisen-
man. He asserted that supplies Of
cloth were delivered on time. and faster
than 1t could be manufactured by tho
factories under General Sharpe.
Eisenman told tye committee he had
recommended, and the quartermaster-
general had approved, reducing the
wool contents in overcoats. blankets
and other clothing and substitution Of
wooden substitutes, or "shoddy,'' saying
the quality was not impaired, and that
as good or better garments were se-'
cured.
& ~
GAVE PROFIT OF lLALF-CENT
The scrap-sortinS contract both
Eisen; and Eaplan asserted was
intended to give the contractors profit
OF only l2 cent : pound. all over that
to be returned to the government
Eisenman protested against its recent
annulment by General Sharpe. who said
the price of cents pound for sort
ing vas excessive.
Senator Mcclellan asked regarding
contracts made with firms in which
members OF the supplies committee
were stockholders or otherwise in
tercs,ed.
Eiscnman said he was pretty sure"
the committee had bought wool from
Jacob +. Brown. of Grown & Adams,
4 Eoston wool firm.
When the committee dealt with his
firm, Mr.. Brown as a supplies commit
tee member stepped asidc?" asked SEN
ator Mcclellan. and Eisennlan assented.
4. +. Scott was another supplies COM
mittcc member named by Eiscnman
who was interested in a company from
which the committee bought cotton
duck.
CoMhrTTEEMEN SIDEsTEP
WHEN CONTRACT is LET
And Mr.. Scott stepped aside when
the committee let the contract" ask
cd Senator Mcclellan.
Yes" Eisenman said. II. named a
MIR. Bailey as another committee mem.
bcr whose firm had simila- contracts.
Then. he too. Conveniently stepped
asidc:" asked Senator Nick cllar
Not conveniently. but 10 comply
with the law" Eiscnman replied.
Senator Mcclellan turned temporarily
to examine Frederick Ellington. of the
supply committee. He said he is a
foreign wool buyer for the American
Woolen Company. still receives a sal
ary from it and is now devotinr all
his time to the governments interests
At 81 a year.
And your firm gets large contracts
from the committce?" asked Senator
Nick eilar.
yes" said Mr.. Ellington. but I
don't think my connection has had any
effect on the contracts OF the hmeri-
can Woolen Company
Brook Stevens. or the United States
hunting Company. another member O.
Eisenman's committee. said tho COM
pany from which nc receives a salary
had received contracts from the sup
plies committee.
Samuel NJ. Kapian. another commit
tee member, testified no was on 81 a
year salary and wool substitute ad-
wiser TO Eisenman. He said he owned
stock in the Winchester Mills Com.
pany and that his firm owned stock
in the Norwich Wool Company, bur
denied being interested I'm the Mill
CONTINUED on Third Page.)