The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-08-06
VAUGHAN TELLS OF
RAINCOAT FRAUDS
Information Expected to Re-
veal Other Irregularities in
Army Contracts.
TWELVE MORE INDICTED
Unsuccessful Bidders Were Of
fcrcd Business for Pay, and
They Complained.

Disclosures through which officials OF
the Attorney Generals office expect TO
be able to uncover substantial frauds In
the awarding OF contracts for army sup
plies were made yesterday by Capt.
Aubrey w. Vaughan OF the ouartermas-
ter's Department OF the army. In a state
ment to Assistant Attorney General
Huston Thompson.
Capt Vaughan was indicted ten days
ago for conspiracy to defraud the Gov
eminent in connection with the award
ing OF contracts for the making OF army
raincoats. ON the day he was indicted
he pleaded not guilty, but next DAY
changed his plea to guilty. Felix Gouled'
manufacturer, and David l.. Podell. a
lawyer. were indicted at the same time
All OF them are out on ball
Capt Vaughan has made a full state
ment to Mr.. Thompson Mr.. thompson
made public yesterday certain parts Of
II in which Capt Vaughan described
how contracts for making large numbers
of raincoats had been awarded to the
American Rubber Company. a subsidiary
OF the United States Rubber Company !;
the Hodgman Rubber Company. ana the
c. Kenyon Rubber Company
Lincoln Green SPONSOR.
Capt Vaughan stated that before be-
ing commissioned in the army he was an
employees OF the Boston Woven Those
Company Of Boston, and that one of his
sponsors when ne applied for his COM
mission was Lincoln Green, Nice-presi-
dent Of the American Rubber Company.
Upon receiving his commission Capt.
IL, a
and had as his immediate superior Ar
thur W. Lawrence, a civilian, who had
been connected with the United states
Rubber Company and had gone to WASH
ington as dollar n year" man.
When Gen. Pershing advised the War
Depa rtment that the raincoats in use
10y the troops in France were not satis-
factory 1t became Lawrence's duty TO
prepare specifications for different
kird Of coat. He appointed committee
TO darw up the necessary specifications
and named three members to act on It..
Lincoln Green. Theodore Hodgn nan and
clare Kenyon.
Capt. Vaughan says the committee
was appointed at time when num-
her of manufacturers had gone 10 Wasn-
ing'on to bid on raincoat contracts, and
that after hearing from number OF
them the committee prepared a list OF
contractors who they thought ought to
have contracts. The list was given TO
Capt Vaughan with instructions to sub
init II to the Quartermaster in New York
and request him to pass on the names
after full inspection OF the contrac-
tors plants.
Last March meeting NJ the raincoat
manufacturers was called At the New
Willard Hotel, the committee on specif-
cations resigned. and bids were sub
mtted The manufacturers were told
that the awards would he made within
few days.
Rig Contracts Awarded.
Ultimately. according to Capt. Vaughan.
a number OF bidders who had bid well
within the specifications were not
named In the awards but the United
States Rubber Company was received
contract for 30O.0 900 coats and the
Hodgman company a contract for 2io,-
900 The Kenyon company was then
working on three contracts. one for
I 900. 600 coats. another for l6O 600 and
a third for 10000 Glare Kenyon. head
Of the concern. is a son-in-law OF the
president OF the United States Rubber
Company
\ number Of the unsuccessful bidders
were approached afterward by agents,
who promised them contracts in return
for pay The complaints made by men
thus approached brought about the ar
rest Of Capt Vaughan and Felix
Gouled.
The Federal Grand Jury in this dis
trict indicted yesterday twelve raincoat
manufacturers for violation OF that Sec
ton Of the United States penal code
which forbids the payment OF money TO
officials with a view of influencing their
decision or action The men indicted
are folly Claggi. Ralph Cohen, Louis
Fried. Samuel Halpern. Simon Harris,
Morris Lesser. benjamin Plottel, Ralph
Rosenthal, Joseph Sydeman. William
Sydeman, Arthur Zittel and Harry T..
Lazarus