The sun., 1918-07-23
IS ARRESTED IN
ARMY RAINC0AT
FRAUD CHARGES
Thirteen Firms Involved
Austrian Held as
Go Between.
BRIBERY PLOT ALLEGED
Inferior Output and Traffic in
Contracts Part Of
Accusation.
BRIBERY PLOT ALLEGED

Sixteen directing officers of thirteen
raincoat manufacturing concerns that
have army contracts asgregating $1o.-
900 900. were arrested last night In
Manhattan and Brooklyn. charged witt
bribery or conspiracy to defrsud the
Government.
Felix Gouled a man Of Austrian birth.
also was arrested. He is charged with
being tho gobstween who used mysteri-
Gus influences TO procure allotments OF
raincoat contracts to manufacturers with
whom he had a contingent fee inte1 est.
Gouled had offices In the Metropolitan
and Flatiron buildings. He lived at $50
West End avenue and has a summer
home at 312 Dickerson avenue. Edge
mere, Queens. He is alleged to have
caused raincoat war orders to go to
manufacturers with whom he had an
understanding that he was to have a
percentage of the profits. In addition
to his own commissions he was alleged
to have collected sums he said were
to 60 to army officers.
Defective Output Charged.
The manufacturers are accused not
only of participation with Gouled in
dealing in war contracts on a commits
sion basis in violation of a law passed
TO cope with evils that became fragrant
during the civil war. but also with the
foisting Of defective garments on the
Government.
Bribery is believed to have been preva-
lent in these transactions. Terrorism
was employed against inspectors Of the
Quartermaster's Department by men
whose influence at Washington was
strong enough to enable them to cause
inspectors. who could not be seduced by
money. to be discharged or transferred
10 other plants.
The men arrested with Gouled and the
concerns OF which they were the re-
sponsible heads were the following:
Joseph Wood. Joseph Sydeman and
william Sydeman of the Sydeman Rub
Der Company, 225 Fourth avenue.
A. Cohen. Yorkshire Manufacturing
Company. University place.
Charles and Benjamin Plottel, Plottel
,Raincoat Company. 1853 West Twenty
seventh street.
Ralph Rosenthal. Hanover & Rpsen-
thai. 245 Seventh avenue.
Arthur Zittel. Automobile Ralncoat
Company. Inc, 21 Washington place.
8. Halpern. marlborough Raincoat
Company, 6s1 and $50 Broadway.
P. Clamon, Manchester Waterproof
Coat Company. us and S2l Broadway.
I. M. Halpern. National Cement Com
Iany. 81 West Thirteenth street.
Simon Harris. Harris Raipcoat House.
1I15 Broadway. a.. ..
Morris Lesser. Lesser 4 Stenge, 81
West Twentieth street.
Rnhhar NJ
14S Thirty-ninth street. Brooklyn.
II. Yellin, Eureka Rubber Company.
College Point. Queens.
To He Arraigned To-day.
The arrest were made by men Of the
New York bureau OF Investigation Of
the Depa rtment OF Justice at the order
OF Houston Thompson, Assistant United
States Attorney General Except Pines,
who was arrested in Brooklyn, all the
men were committed for the night, and
will be arraigned to-day before Samuel
NJ. Hitchcock. United States Commits
sioner.
Joseph Pines, the accused manufac-
turer who was arrested In Brooklyn,
was arraigned before United States Com
missioner Reifschneider of the Eastern
District. de was accused of trying to
bride an officer pr the United States.
Inc complaint wds made by Charles L.
Fuller. chief injpector of the rubber
division of the Quartermaster Depart
ment. Bail was fixed at $1,000.
Mr.. Thompson's investigation dealt
with the raincoat phases of a nation
wide campaign against the commission
evil in war contracts, which was Or
dered In April by Attorney General
Gregory. The discovery that hundreds
Of defective raincoats had been shipped
TO France brought a report from Gen.
Pershing that caused a new phase Of
the investigation to be started.
Obtained Data in Raid.
Early IN the Investigation a raid was
made on the offices Of number OF manu-
featuring concerns and much informa-
ton of value was obtained The clues
obtained from. these papers led the in
restigators from New York to Phla-
delphia and Washington, and eventually
back to New York, where Gouled with
lis two Offices in buildings a few hun
dred yards apart was discovered
Before meeting Gouled. the investi-
gators were put in touch with a number
OF responsible manufacturers of rain
coats who complained that they Lad
been unable to win army contracts,
though they had been the low bidders.