The circle banner. [volume] (Circle, Mont.) 1914-1939, 1918-06-28
OFFICER ARRESTED
FOR TAKING BRIDE
GOVERNMENTS PURSUIT OF WAR
PRoFITEERs is BE-
ING PUSHED.
MORE ARRESTS MAY FOLLOW
Department of Justice Attempting to
Break up System by Which Con-
tingent Fee Agents Have
Made Millions.
MORE ARRESTS MAY FOLLOW

|
| Washington, June 19.-The trail of
the governments pursuit of Illegal
profiteers on war contracts has led to
| the arrest in New York of Lieut.. JAS
| G. Staley, a reserve army officer, on
| charge of accepting money from the
Truefit Raincoat company of New
York for contract which he promised
to procure.
The arrest was made by department
of justice agents who had followed
the officer during his inspection of
the plant of the raincoat company,
whose proprietors acted in co-opera-
ton with the government to detect the
fraud.
Caught With Goods.
The secret agents arrested him i'm
mediately after he was said to have
received sum of money from Joshua
Rosenthal and Louis Wiener, pro-
prietors of the plant. 1t was charged
that he had told them that he would
expect more money as soon as they got
the contracts which they sought for
10000 rainc0ats costing nearly $250,000
This was the first arrest of an army
officer since the department of justice
started its investigation into the sys-
TEN by which contingent fee agents
have made millions by obtaining con-
tracts for manufacturers who were
charged commission.
Other Arrests May Follow.
Other arrests may follow soon, as it
is known that number of contractors;
in New York and elsewhere are as
sisting the government in running
down agents by whom they have been
approached.
Lieutenant Staley is about 30 years
old and came originally from Iowa. He
training camp in that state
last summer and later was transferred
to Fort Smelling, near st. Paul, where
he was commissioned in August. Sub
sequently he was trained at the quar-
school at Camp Dodge,
Iowa, and last December IL was ap-.
pointed an inspector in the quarter
masters department for raincoats and
other army rubber goods He has been
stationed in New York most of the
lime since
Makes Complete Confession.
After being arrested Lieutenant Sta
ey made complete confession of his
part in the transaction, department of
Justice officials said, and gave much
'aluable information which may lead !
o the detection of other cases of
raud. He will be tried by court mar
ial. 20
The shadow of completely in the ex-
ensiye scheme by which commission
gents made millions out of govern
nent war orders by acting. as middle
zen in obtaining contracts for manu-
acturers has extended to scores of
usiness men and attorneys in Wash
lgton, New York. Boston and other
tiles, and even to a few secretaries of
lemberS of congress-
These men. many of whom were
mateurs in the game of soliciting war
ontracts. promised to use their in
uence with government officials.
rmy officers or members of congress
} assure theyawarding of contracts to
pecial concerns and in turn to receive
if the contracts were
lnded.
Carefuily LAID Ptofs
A large portion of these cases, dis
Osed by correspondence and other
ocuments seized in the simultaneous
lids on offices of several hundred
plants and forwarded to
lie department of justice. were not
rompted by sinister motives, officials
elie~e, and prosecutions will not fol-
w. Many others, however. appear
lie result of carefully planned plots
} squeeze millions from contractors,
no in turn were to add the contingent
res to prices which the government
as required to pay.
If it is found any army or navy Of
GERS were implicated directly. they
i'll be speedily court martialed, Sec
,tary Daniels said after the cabinet
Getting yesterday.