The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-06-18
REVEAL GREAT
/. GRAFT CONSPIRACY
n, i /
Between Manufacturers and
Agents of Contractors in !
-. Washington Il
3
VERMONT PLANTS !
AMONG THOSE RAIDED
Department of Justice Claims to
Have Secured Quantity of Evidence
to Show Payment of Commissions on
War Orders.

War Orders.
WASHINGTON, June lS.-A nation
wide conspiracy between manufacturers
and contractors agents in Washington
TO soliclt government war orders under
an agreement to pay commissions IL
legally to the agents, was disclosed YES
terday by the department of justice.
simultaneously with the announcement
yesterday raids were made on hundreds
OF manufacturers business offices
throughout the United States in search
of papers showing the scope of the IL
legal practice, and four Boston busi-
ness men were indicted in Washington
on charges CT acting as contingent fee
agents.
Among the towns in which raids took
place are Burlington and Windsor, VT.
Even before the results of the raid
were fully reported at Washington last
night, officials indicated they had evit
dence that scores, perhaps hundreds, of
contracts have been made with manu-
facturers who were under pledge to
turn over to contract commission agents
in Washington, New York and else
where percentage of their profits. Of
feials said the manufacturers were led
to enter into the agreements by assur-
anees of the agents that they had spe-
cial influence with army officers or 9th
ers In charge of letting contracts. and
under threat to use that influence
against the manufacturers. Evidence
was said to have been secured that some
of the agents already have made thou
| sands in commission fees
This development led to investiga-
tion of the relations between certain
army officers and these agents and al
though there is no definite indication
| that these officers are knowingly in
volved in the 'tons1itiefeH, Secretars
Baker is making thorough investiga-
| tion in cooperation with the department
of justice and last night authorized the
| statement that he would 90 to the bot
tom of all suspicious eases. Secretary
Daniels also is keeping in close touch
with the investigation and the whole
| situation has been called to the atten.
! tion of President Wilson and his cab.
met.
! The commission agents guilty OF
these Illegal practices will be prosecuted
under conspiracy statutes and all con
| tracts made by them or with their aid
are subject to annulment by the gov
| ernment.
| Ramifcations of the plot may lead
soon to other disclosures as sensational
as those of yesterday. These may de-
velop as reports trickle in from the dra-
matte raids prearranged for O'Clock
yesterday afternoon, eastern time, when
secret agents of the department of jus
tice bureau of investigation entered of
fees of several hundred business firms
showed their badges of authority and
spent several hours going through letter
files searching for documents which
might shed light on contingent fee con
tracts. Eleven Offices in Washington
were raided at the same time and q
great mass of papers of contract agents
was carried away.
| At almost the same hour that the
raids were made federal grand jury il
/ Washington returned indictments charg
ing conspiracy to obtain contracts I'M
der the illegal contingent fee plan
against John Fleming, former water
commissioner of Boston; John T. Cav
anaugh, Eugene Sullivan and JOSEPH
Kohn, all of Boston. These men, II i.
charged, worked together in a mysteri
Gus, involved manner, persuading manu-
facturers to pay them commissions OF
contracts they obtained, representing
that they had special influence with Ger
tain unnamed army officers, and il
some cases actually procuring the con
tracts and receiving their fees.