Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1918-06-20
NATIONWIDE WAR
CONTRACT SCANDAL
Manufacturers Have Been lille.
gally Paying Commissions to
Contractors Agents
FOUR MEN INDICTED
Raids for Evidence Made In Many
Cities a Country Including Durline-
ron. w. Says Washington Despatch

conspiracy between manufacturers and
cortruotors' agents IN Washington to
sClic!t government war orders under an
Agreement TO psy commissions illegally TO
the aessts. was disclosed to-day by the
department Of Justice.
simultaneously WITH the announcement.
n<Ias we're made on hundreds OF manu-
lecturers o1xnsSs offices throughout the
Omitted states in search Of pspera show
Ing the scope Of the illegal practices and
tear Boston business men wsrc indicted
In Washington on onarses OF acting as
reatingent Zee agents
Erso before the results Of the raid were
tnIly reported here tonight oficisls IN
SEATED they HAD evidence that scores.
perhaps hundreds Of contracts have been
made with manufacturers who were under
pledge to turn over to contract commits
ZION agents In Washington and New York
ND elsewhere n percentage Of their
profits.
Officials said the manufacturers we're
ed to enter into the agreements by as
Iurances of the agents that they had spe-
:isl influence with army officers or others
n charge of letting contracts and under
threat to use that influence against the
manufacturers Evidence was said to
nave been secured that some Of the agents
AHedOy nave HldUe tHOuSdHuS OF uOlldTe
n commission fees
This development led to investigation Of
he relations between certain army off,
:ers and these agents and although there
Is no definite indication that these officers
ire knowingly involved in the conspira-
.ies. Secretary Baker Is making a thor
,ugh investigation in cooperation with
he department Of justice and tonight au-
:horized the statement that he would go
% the bottom Of all suspicious cases. Sec
retary Daniels also is keeping in close
touch with the investigation and the
whole situation has been called to the at
ention of President Wilson and his cab
net.
The commission agents guilty Of these
Illegal practices will be prosecuted under
conspiracy statutes. and all contracts
made by them or with their aid are sub
ect to annulment by the government.
Ramificatons Of the plot may lead
shortly to other disclosures as sensa-
honal as those of to-day. These may
develop as reports trickle in from the
dramatic raids pre-arranged for four
O'Clock this afternoon eastern time.
when secretary agents of the depart
ments bureau Of investigation entered
ofi1ces of several hundred business AIMS.
yhowed their badges Of authority and
spent several hours going through let
ter files searching for documents which
might shed light on contingent fee
contracts. Eleven offices in Washing
ton were raided at the same time and
great mass of papers Of contract
agents was carried away.
= Other cities in which raids were made
Include New York. Boston, Chicago
Van Francisco. Jersey City. Philadel-
phia. Pittsburg. Buffalo. Niagara Falls
: Rochester. Albany. Bordentown. N. j..
Burlington. VT. Camden. N. j.. Concord
, y. H., East Rochester. N. Y, Farming
hale. n. j., Freedom, Penna.. Fullerton.
Pa. Harrison. N. j., Kingston. n. j..
Hiddletown. Pa. Nashua, N. H.. Sara
toga- n. Y. and Windsor, VT.
At almost the same hour that the raids
we're made federal grand jury In WASH
lngton returned indictments charging con-
spiracy to obtain contracts under the
Illegal contingent fee plan, against John
Fleming, former water commissioner OF
Boston; John T. Cavanaugh, Eugene
Sullivan and John Kohn. all Of Boston.
These men. II Is charged. worked together
In mysterious manner, persuading
manufacturers to pay them commissions
on contracts they obtained, representing
that they had special influence with GER
tain unnamed army officers. and in some
cases actually procuring the contracts
and receiving their fees.
1t was officially announced that these
men were detected In their negotiations
with B. A. Bittan. president Of the Quaker
City Raincoat company. Philadelp ria
who worked with government agents in
. gathering evidence against them. They
were arrested In Washington recently
and are now at liberty under bond. The
government will make theirs a test case
meanwhile taking action against Others
. suspected Of similar tactics.
Most of the raids to-day were made in
the East. and large proportion in New
England.
V. A. Billiard. United States distric,
2 attorney stated last evening that he
!. kL W that within a few weeks an in.
vek IgatioE had been underway In
Burlington and tina. Como bushes,
places had been visited but he under.
stood that nothing had been discov-
cred to indicate that manufacturer.
here were guilty Of any irregulartties
In their methods Of obtaining govern.
ment contracts.
TvIYDEE TNI1nnn0v1 A mn,