Omaha daily bee., 1918-06-19
ARMYM man
NAbbED.AS
CRATER
1t. James C. Staley, Reserve
Officer Trained in Iowa, Ar
rested on Charge Of Ac-
cepting illegal Fee.

trail of the governments pur-
suit of illegal profiteers on war
contracts today led to the ar
rest in New York of 1t. James
G., Staley, reserve army Of
ficer, on a charge of accepting
money from the Trueft Rain
coat company of New York, for
a contract which he promised
to procure.
The arrest was made by De-
partment of Justice agents,
who had followed the officer
during his inspection of the
plant of the raincoat company,
whose proprietors acted in CO.
operation with the government
to detect the fraud.
The secret agents arrested Staley
after he was said to have received
sum of money from Joshua Rosen-
thai and Louis Wiener, proprletors
Of the plant. 1t was charged that he
sold them he would expect more mon-
ey as soon as the got the contracts
which they sought for $4,000 rain
coats costing nearly $25o,OO0.
Lieutenant Staley made a complete
confession of his mart in the transac-
tions, department officials said. and
gave much valuable information which
may lead to the detection OF other
cases of fraud. He will be tried by
a court martial. 81
Other Arrests. Forecast.
This was the first arrest OF an
srfiiy officer since the Department O.
Justice started its investigation into
the system by which contingent Tee
agents have made millions by OBJ
tanning contracts for manufacturers
who were charged commission.
/ Other arrests may follow soon, as 1t
is known that number OF con-
tractors in New York and elsewhere
are assisting the government in run
HlnS GOWN dSClItS ny Whoiii thSy ioFS
. been approached.
Lieutenant Staley is about 50 years
old and came originally from Iowa.
He entered a training camp in that
state last summer and later was trans
ferred to Fort Smelling, near St. Paul.
where he was commissioned in AT
gust. Subsequently he was trained at
the auartermaster' school at Camp
Dodge, Iowa, and last December II,
was appointed an inspector in the
auartermaster's department for rain
coats and other rubber goods. He
has been stationed in New York
most of the time since.
Score Involved in Charges.
The shadow of completely in the
extensive scheme by which commits
sion agents made millions out of gov
ernment war orders acting as middle
men in obtaining contracts tor manu-.
facturers, today extended to scores OF
business men and attorneys in Wash
ington, New York, Boston and other
cities, and even to few secretaries
of members of congress.
These men, many OF whom were
amateurs in the game of soliciting
war contracts, promised to use their
influence with government officials.
army officers or. members of con-
gress to asure the awarding of con-
tract to special concerns, and in turn
to receive compensation if the con-
tracts were landed.
A large proportion Of these cases.
disclosed by correspondence and
other documents seized in the sinful
taneous raids yesterday on officers of
several hundred manufacturing plants
and forwarded today to the Depart
ment of Justice, were not prompted by
sinister motives, officials believe, and
prosecutions will not follow, Many
others, however, appear the result of |
carefully planned plots to squeeze
millions from contractors, who in
turn were to Id the contingent fees
to prices which the government was
required to pay.
One of the principal aims of the in
quiry is now directed to learning
whether any army or navy officers
we're subject to sinister influence. of the
agents. If it is found any officers were
implicated directly, they will be speed
lily court-martia1ed. Secretaries Baker
and Daniels said today after the cab
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