Evening journal., 1918-06-18
WAR CONTRACT PLOT
EXPOSED By j. 5.
Raids Are Made in Forty
Cities on Information
Given in Philadelphia
CONTINGENT FEE
OPERATORS SEIZED

WASHINGTON. June is-A nation
wide conspiracy between manufacture
ers' and contractors agents in Washing
ton TO solicit government war orders
under an agreement TO pay commits
slons Illegally was disclosed yesterday
by the Department Of Justice.
simultaneously with the announce
ment raids We're made on hundreds Of
manufacturers business Offices through
out the United states In search OF pa
pers showing the scope Of the Illegal
practice, and four Boston business men
were indicted in Washington on charges
OF acting as contingent fee sgents.
p Even before the results OF the raid
were carefully reported here, officials
Indicated they had evidence that scores.
perhaps hundreds OF contracts, have
been made with manufacturers who
were under pledge to turn over TO con-
tract commission agents In Washington.
New York and elsewhere a percentage
OF their profits.
Officials said the manufacturers were
led TO enter into the agreements by as
surances Of the agents that they had
special influence with army officers or
others in charge OF letting contracts
and under threat 90 use that influence
against the manufacturers. Evidence
was said 70 have been obtained that
sofne Of tho agents already have made
their thousands I'm commission fees.
This development led 90 Investigation
OF the relations between certain army
officers and these agents, and although
there Is no definite indication that these
officers are knowingly involved In the
conspiracles, Secretary Baker IS making
a thorough Investigation I'm cO-0pera-
tion with the Department OF Justice.
and last night authorized the statement
that ne would 20 TO the bottom Of any
suspicious cases, Secretary Daniels
also Is keeping in close touch With the
Investigation, and the whole situation
has been called 10 the attention Of
President Wilson and his Cabinet.
The commission agents guilty OF
these Illegal practices viii be prose-
cuted under conspiracy statutes, and
all contracts made by them or with
their raid are subject 10 annulmcnt by
the government.
RamflcstlOns Of the plot may lead
shortly 10 other, disclosures as SEN
sationsl as those Of today. These may
develop as reports trickle In from the
dramatic raids prearranged for o'clock
this afternoon, Eastern time, when the
secret agents Of the Department OF
Justices bureau OF Investigation en-
tered Offices OF several hundred busi-
ness firms, showed their badge OF au
lhority and spent several hours going
through letter files, searching for dOcu
ments which might shed light on con
tingent fee contracts. Eleven offices in
Washington were rsided at the same
time, and a great mass Of papers for
contract agents was carried away.
other places IN which raids were /
mado include New York, Boston, Wash |
ington, Chicago, Brooklyn, ssh Fran /
cisco, Jersey City, Philadelphia. Pitts I
hurgh, 81. Louis, Cincinnati, Cleveland. /
Toledo, Columbus, O.; Detroit, Milwau- /
kee, Minneapolis, Providence, Buffalo, 4
Hartford. Con: New Britain, Conn. ;
Niagara Falls, Portland, Me, Rochester,
Worcester, Mass: Akron, o.; Albany,
n. Y; Alexandria, Va; Ann ArbOr,
Mich; Bordentown, y. j.; Brazil, Ind. /;
Bridgeport, Conn; Burlington, VI; Cat
tenden, y. j.; Canton, o.; Chicopee,
Mass; Concord. y. H.; Danbury, Conn.
South EastOn, Mass; East Rochester,
n. y; Eauclaire, Wis; Farmingdale,
y. j.; Flint, Mich: Freedonl Pa; Full
lerion, PAT Hagerstown, Md; Harrison,
n. j.; Holyoke, Mass. Jackson, Mich;
Kingston, y. Y; Lancaster, o.; Lock
port, ILL.,; Aieriden, Conn; Middletown,
Conn. Middleiown, Pa; Monroe, Mich;
Nashua, y. H.; Newtonyille, Mass; Nor
folk, Va. Parkersbu-E w. Va; Pekln,
Ill; Pensacola, Peru, Ind; Saratoga,
n. Y; Savannah, Springfield, Mass;
Waltham, Mass, and Windsor. VI.
At almost the same hour that the
raids were made a Federal Grand Jury
I'm Washington returned indictments,
charging conspiracy 10 obtain contracts
under the illegal contingent fee plan,
against John Fleming. formerly Water
Commissioner Of Boston; John T. Cava-
naughs Eugene Sullivan and Joseph
Kohn, all Of Boston.
These men, II Is charged, worked to
gether in a mysterious involved manner 4
persuading manufactu. ers 10 pay them
commissions on contracts they obtain
ed, representing that they had special
influence with certain unnamed army
ohlutlof anu III Iaoua oIeua-A9 fAg1HliAc
the contracts and receiving their fees.
lt was officially announced-these men
were detected in their negotiations with
B. A. Bittah, president OF the Quaker
City Raincost Company OF Philadelphia
who worked with government agents
In gathering evidence against them.
They were arrested in Washington re-
Gently and are now at liberty under ,
bond The government will make theirs
test case, meanwhile taking action
against Others suspected Of similar tao
tics