New Britain herald., 1918-06-18

that range from two to ten per cent of the amount of the contract. In many instances, according to the in
 formation obtained, the Contin gent
 fee man has informed the manufac-
 turer that the latter could not deal with the government except through him, and that unless the contingent fee were paid no conracts could be obtained. On the other hand, there
 is evidence Of cases in which the
 manufactures sought the contract
 broker.
 Inside Influence Is Claimed.
 The department of justice recently
 became aware of an attempt by John Fleming, John T. Cavanaugh,
 Eugene Sullivan and Joseph Kohn to obtain a contract for the manufacture
 of raincoats for the Quaker City
 Raincoat company. of Philadelphia
 Indictments against all four of the
 men were returned by the federal
 grand jury in Washington yesterday.
 B. A. Bittan, president of the com
 pany. was called on the telephone, it
 seems. by some unidentified person who told him that if he wanted to
 get any government contracts he could do so by getting in touch with Joseph kohn of Boston, who had "in- side influence in Washington" The person at the other end of the wire
 represented himself to be Kohn's brother, but he declined to go to MT. ] Bittan's place of business.
 MT. Bittan sought the advice of an officer ill the Quartermaster's Corps stationed in Philadelphia, who advised 1 him to report the affair to Washing 1 ton, which he did. MT. Brittan began correspondence with Kohn in Bos- ! ton.
 Under the direction of the Depart 1 ment of Justice, MT. B1ttan took 1 rooms at hotel in Washington, | where he arranged to meet Fleming l Cavanaugh and Sullivan A contract 1 was drawn up in which it was agreed 1 that Mir. Bittan was to jay the other 1 parties five per cent. commission on 1 the contract about to be obtained and
 six per cent. on all subsequent con- l tracts. They assured him that he
 would receive contract for 100000 1 raincoats. In addition to the percent 1 age commission they demanded $500
 paid to an officer in the Quarter l masters Corps.
 The men also said that they had 1 men under their influence and pay,
 stationed in various purchasing de- l partments of the governm ent in | Washington and could obtain con- ! tracts whenever the government was in the market The $500 was paid by ] MT. Bittan and the transa ction con- l pleted
 Fleming. Cavanaugh and Sullivan
 were arrested in Washington. Kohn | was arrested in Boston
 1 The search made in the various | cities yesterday was through the { papers of hundreds of corporations 1 who have contractual relations with l the government and who if is believed l obtained their contracts through con- ! tingent fee agents. A search also has l been made of the papers of certain l firms and corporations who act in the l capacity of contingent fee operators. l The governm ent has been aided in its [ arrangement of investiga ting the l whole situation through loyal and patriotic manufacturers who vo1un- teered information.
 1 The government recently obtained
 the conviction of a contractor who
 had connived with an officer in the 1 army to Obtan a government contra ct 1 The contrayc tor was sentenced to five years in the penitentiary and the off,
 cer was given a twenty year sentence 1 by a court martial.
 There is no intention to interfere l with legitimate relationships between 1 manufacturers and the arious depart ] ments of the government over con- 1 tracts, but the manufacturer must l deal directly with the departments l and not through niddlemen or agents 1 employed on contingent fee basis. 1 The government through all it's a. ! gencfes is determined that money
 shall not be expended on contingent fees for hrOkera ge cOntractnrs