The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-11-01

Il
shares purchased outstde gave him i29
Packard common stock shares OF the
par value of $4,000. He has continued
to hold this stock since August, 1917,
and has received dividends, with the ex-
ception OF one quarter, for which the
dividend was passed.
Vincent Lent 10 Government.
From May %. 1917. TO August 10,
1917. Mr.. Vincent, while paid by the
Packard company. was lent to the Gov
eminent for the development OF the Lib
erty motor. He was commissioned a
Major in the army on September 3. 1917.
and later was raised to Lieutenant Col
onei. He is now in charge Of tho air
plane engineering division of the Blu
reau OF Aircraft Production,
The Hughes report says:
Both before and after Major Vincent
I received his commission in the army he
mad transactions with the Packard Motor
Car Company in which he acted on be-
half OF the Government"
The report points out Col. Vincent 3
activity in connection with the expert
/ mental work done by the Packard COM
pany for which the company was paid
! S249,0o0 on vouchers including his own
salary. during the period in which the
company lent him to the Government
! IL also says that some of these vouchers
were passed or approved upon the GER
titcate Of Col. Deeds. then a civilian.
/ who had no authority to make the
voucher.
/ No Evidence of Fraud.
| The irregularity OF proceeding in
TINS manner without a contract or proper
order In writing Ia apparent" Mr.
Hughes says 1T should be said. how
ever. that the evidence docs not afford
ground for the conclusion that the Gov
eminent was defrauded or that there
was any intent to defraud the Govern
ment on the part OF any OF the parties
concerned
"A distinct question however, is pre-
sented as TO Lieut. Col. Vincent Section
Al OF the Criminal Code explicitly pro-
hib!ts any person who Is directly or in
directly interested in the pecuniary
profits or contracts of corporation
from acting as an officer or agent OF
the United States for the transaction of
business with such corporation. 1t is
manifest that Lieut.-Col Vincent acted
as an officer and agent of the Govern
ment for the transaction of business
with the Packard Motor Car Company.
IN which he was stakeholder. and that
this was In violation OF the statute"
The report says:
1t would seem to be quite as impor-
tant that the chief of a department of
inspection, selecting the inspectors who
act under his Instructions at the plants
or contractors. should be free from in
terest N the corporation whose work is
inspected as the inspectors themselves
and both the chief OF an inspection de-
partment and the inspectors may prop
erly be regarded as agents Of the Gov
ha fra, Co.,
with the corporation.
The same would be true Of the pro-
duction manager having supervision of
production under contracts with the
Government No ruling In the Federal
courts with respect to the applicability
or the statute to which an officer or agent
OF the Government has been found, In
the view that the statute has the scope
suggested. Lieut.-Col. Mixter acted as
an officer or agent OF the United States.
contrary to the prohibition, for the
transaction OF business with the Curtiss
Aeroplane and Motor CORPORATION. in
which he was n stakeholder His hold
ings were small. but II cannot he said
that for that reason the statute is in
applicable"
VrOOman Also Held Liable.
Major Howard g. Marmon. formerly
We N4'V " NaTnOn company, iG
absolved from any violation of the stat
ute but Second Lieut. Samuel h. Vroo-
man. Jr.. is rot. Vrooman was formerly
with the S. b. Nrooman Company of
Philadelphia. In the equipment division
OF the signal Corps, as inspector OF ma
hogany purchased by the Government /
he selected the district officers. who i'm
turn selected the inspectors The report
SAYS
Among the plants subject to his ill., |
risdiction as head of inspection of pro- !
peller lumber is that Of the S. b. Vroo- !
man Company which has had contracts |
with the Government and is within the !
territory assigned to the district office
at New York, $. r Nrooman. Jr. Sc ;
lected the head OF this office. Mr. Nc !
Cullough. who was responsible to him !
for the efficiency OF the inspection and
for the carrying out Of His instructions.
which related to the inspection at the !
Nrooman plant as well as others The |
conclusion is not to be escaped that s |
Il, Nrooman, Jr.. was the agent Of the
Government directly responsible for the
proper inspection OF the mahogany de-
lsvered by the T. u. Nrooman COMPANY
10 the Government under it's contracts
and that his acting as such agent ~,
the transaction of business with the cor
poration in which he was stockhold,r
was III violation OF the statute
Lieut.. Nrooman. the report saws still
holds $4,000 par value worth OF stock OF
the s. b Nrooman COMPANY
At sea on Foreign Orders,
The Aircraft Programme" is the sub.
iect of the fourth division OF the renort
BY the year 1917, loo airplanes had been
delivered 10 the army The manufac-
turing industry was in its infancy. Tie
necessity of prompt endeavor to sur
mount the difficulties and OF securing nj
once the full benefit OF foreign experi-
ence was obvious"
Mr.. Hughes finds, first. that there was
a woful lack OF information in the United
states about the exact status of foreign
orders. Lieut. Col. s. l.. Wolf said that
repeated inquiries ex-
tending over many weeks he has been
unable to ascertain within 100000 oOO
what obligations had been incurred
abroad"
The Liberty Motor, Mr. Hughes finds
Is largely "A development or outgrowth
" the original Packard engine. He says
AS late az June as OF this year Gen.
cable described series of
letects In the motors which had been
shipped abroad and these, II is under
stood, were speedily remedicd.
Liberty Motor Success.
at now appears 10 be conclusiyely es-
ablished that the Liberty engine Is a
great success for observation and bomb
ng planes, and for this purpose it has
'ound high favor with the Allies II is
90 heavy for the lighter pursuit Dlanes !