The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-10-16
RAINCOAT INSPECTOR
TOOK CHARITY GIFT
Capt. Vaughan Says Gouled
Gave Him Also $500 sloan"
and a Watch for His Wife.
DID NOT INFLUENCE HIM
Denies Gifts Affected Contract
Awards-S15,O0O Job Was
Promised.

Capt Aubrey W. vaughan, quarter
masters Department. who as procure
ment officer at Washington awarded
contracts for army raincoats involving
more than $4,000, 900. described yester-
day In the Federal District Court his re-
lations with Felix Gouled, alleged jobber
in army contracts. Gouled and Felix
PodeIl. a lawyer. are on trial before
Judge Edward E. Cushman and a jury,
charged with conspiriug to defraud the
Government. Vaughan. a codefendant,
pleaded guilty to an indictment chars-
ing him with accepting gifts from
Gouled. He testified for the Government.
Vaughan said that after he had rec
commended that the s. Levtnsky's Sons
Raircoat Company. In which Gouled had
acquired a partnership interest affecting
Government work only. receive a con-
tract for $4,000 ralncoats. he accepted
from Goulsd $3.50 and a diamond
studded platinum wrist watch.
He said the money was In two pay
ments, $1,000 and $500. Gouled offered
hllc tl,OVv, HC Sdiup ucSidA Ah8 haAoL -
could be applied to charity. The second
payment, he said. was in the form Of a
railroad ticket TO Boston and TIE change
from $500 bill. The Captain said he
accepted this as a loan. Gouled gave
him the watch for his wife.
Vaughan Made Recommendation.
The testimony Of Joseph A. Burdeau.
Assistant United States Attorney, es-
tablished that the Governments awards
OF contracts for shoes, rubber and
leather goods lay with Vaughan. though
his recommendations went to his su-
perio-s. among whom were Col II j.
Hirsch, who is under indictment In
Brooklyn.
Vaughan said he entered the army In
March. 1917. He was put in charge OF
Inspections at the Boston depot. In
November. 1917, he said. he learned that
y. Lincoln Green. an officer OF the United
states Rubber Company. had suggested
he be transferred to Washington.
In Washington Vaughan said he was
placed IN charge Of the procurement Of
raincoats under new specifications pre-
pared by committee OF manufacturers
composed Of Mr.. Green. Theodore Hods-
man OF the Hodgman Rubber Company.
and Glare Kenyon. Jr., of the c. Kenyon
Company OF Brooklyn.
Vaughan said he met Gouled first Feb
ruary 20 at a meeting OF raihcoat manu-
facturers at the Council OF National De-
fence in Washington. Gouled introduced
Aaron Levinsky. against whom Gouled
declared the New York QuarterTnaster's
dep was discriminating.
Vaughan az che request OF Gou'ed
came to New York and inspected Levin
Ga nfA L., "a
favorable opinion, and Il report came
from the New York depot approving It.
Then he recommended that the company
receive a contract
Warned Against Large Deposits.
Vaughan said when he accepted the
ticket for Boston and the change from
$500 Gouled cautioned him against maxi
ing large deposits and assured him "A
position paying $4,000 a year would be
offered to him after the war. He said
he was not Influenced in awarding con-
tracts by the money he accepted from
Gouled.
Mr.. Burdeau introduced a document
which he said was recovered last week
after 1t had disappeared with other pa
pers relating to Gouled from the flies Of
the bureau. II read:
There IS also a big order comm &
through in a day or so for l.o40, 900
scr,lbbing brushes, SPECIFICATIONS for
which you can see at New York depot.
Deliveries to be completed in six or seven
months. II you can do anything let me
know and I Will send you the price"
This was alleged to have been found
BY Herman Cohn OF the Military Intelli-
gence Bureau in Gouleds office Cohn
admitted that he continued busine IS
transactions with Gouled while he was
investigating him for the Government
Martin Steinthal of the New York Lap
Robe Company, 2is Green street. testi-
fed that he was unable to set a Govern
ment contract for puttees until he had
entered into n partnership agreement
with Gouled providing for equal division
Of profits after ) per cent had been
taken by Gouled. The 3 per cent. the
Government charges. provided a fund
with which Gouled influenced Govern
ment officials.
Steirthal testified that he received
quickly five contracts involving s45O,Oo0
after entering into an agreement with
Gouled. He paid Gouled SIS, 900 after
June l. he said. as contributions to the
per cent fund. Podell, the lawyer. Is
charged with drawing up contracts be-
tween Gouled ard manufacturers de-
signed to conceal the existence OF a slush
fund. The trial VIII be continued to-