New-York tribune., 1918-10-16
Tost Document" i'm
Raincoat Case Is
Produced by u. S.
Paper Previously Missing
Offered Unexpectedly
by Government

c1Ared to be essential to the govern
znents prosecution Of alleged army
xzincoat frauds, was unexpectedly pro-
dneed ywsterdny by Federal Prosecutor
Jassph A. Burdeau at the trial of Felix
Goulad, David Poden and Captain
Aubruy W. Vaughn, Of the quarter
nnastar's department. These documents
were sea1ed in thu Office Of Gouled, it
Ia said.
The three msn on trial before Judge
CSashman in the Federal District Court
AFRO charged with conspiring to defraud
the United States in the letting of
rainrnAt contracts Captain Vaughan
Is the chief witness for the prosecu-
tion-
While Sergeant Herman Cohn, of the
yesear1isy Mr.. Burdeau produced the the
rac1vered document and had Cohn
Asntify it. 1t read:
There is also 8 big order coming
Through In day or SD of 100000
whteh you can see ss in New o'eH1,ot York depot
Deliveries to be completed in six or
seven months. II you can do anything
les me know and I will send you the
price,"
Sender's Name Withheld
The Federal authorities refuse to re-
veal the name of the man who sent
this communication to Gouled. 1t is
known, however, that the matter has
teen fully investigated and develop
ments OF startling nature are looked
for. At the first trial Of the trio
Sergeant Cohn testified that he had
turned these documents over to Cap
fM Au<vn nv& %h-& LcL
Captain Vaughan yesterday told his
part in the raincoat scandal He said
he was commissioned captain in
March, 1917, and assigned to the Army
Inspection Bureau, at Boston In the
fall Of that year he learned that
Lincoln Green had suggested that he
and others be transferred to Wash
fng*on in connection with the pro-
curement of raincoats. Mr.. Green, of
the United States Rubber Company;
Theodore Hodgman, of the Hodgman
Rubber Company, and Claire Kenyon,
OF the c. Kenyon Company, were at
that time the members Of the SUBJ
committee on raincoa, procurement 1e naI
Captain Vaughan identified list of
raincoat manufacturers which had been
prepared by this raincoat committee,
which rated the concerns A, B, C and
r. The +, ne explained. meant "rot-
ten"
Met Gou1ed IN Capital
He said the first timc he met Gouled
was on February 20, 1918, at meeting
Of the Council of National Defence in
Washington, and that Aaron Levensky
was with Gouled at the time
Some time later, he said, Gouled pro-
tested to him that the New York de-
pot would not give Levensky square
deal in the matter of contracts and
asked him to inspect the Levensky fac
tory in Brooklyn. He accepted this
invitation, and on the way to the
factory Gouled offered him $1,000 in
bills, which he refused. After the in
spection he had luncheon with Gouled,
and the latter offered him a diamond
wrist watch for his wife, which he re-
fused. Soon after Vaughan's inspec-
ton favorable report on the Levcn-
sky plant was made and he was awarded
| a contract.
Later in Boston Gouled met Vaughan
and when they wore out driving in an
automobile, according to the officer.
Gouled paid him $1,000 which he said
he could give to charity if he wanted
t: On this same trip the wrist watch
also was given him. The officer then
Hotel Martinique, Gouled bought him
a ticket for Boston and gave him the
change of $500. At that time, Vaughan
testified, Gouled said, Don't make any
large deposits."
Prepared Favorable Report
He said that he had also inspected
the factory of Rosenfield & Co. in
Westchester and had prepared a ia
vorable report when the Department
of Justice started its crusade against
the contingent fee operators in June
and arrested several raincoat manu-
facturers.
Before Vaughan was on the stand
Martin Steinthal, of 219 Green Street
told of the difficulty he had had in
obtaining contract before he signed
an agreement to give Goulcd a S pei
cent commission on all government
work. He said that under this contract
he had already paid Gouled $4,000
and that under the terms of the con,
tract he was also forced to pay him SC
per cent of the profits. Steinthal re-
ceived a contract amounting to $45O,00(
for spiral puttees.