Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1918-06-20
OFFICER ARRESTED
IN GRAFT PROBE
Lieut.. Jas c. Staley Accused Of
Accepting Money from
Rainc0at Company
MAKES A CONFESSION
More Than soo.ooO war Contracts n
70 Cities Are Involved in Govern.
ment's Nation. wide Crusade

washington, June 1s-The trail Of the
governments pursuit of illegal profiteers
on war contracts to-day led to the arrest
In New York OF Lieut. James c. Staley,
reserve army officer, on a charge of
accepting money from the Trueft Rain
coat company Of New York for a con-
tract which he promised to procure.
The arrest was made by department Of
justice agents who had followed the ON
Ger during his inspection of the rlant Of
the Rafncoat company, whose proprietors
acted in cooperation with the govern
ment to detect the fraud.
The secret agents arrested him inme.
diately after he was said to have re-
ceived sum of money from Joshua
kosenthal and Louis Wiener, propretors
OF the plant. It was charged that he
had told them ne would expect mora
money as soon as they got the contra eta
which they sought for $4,000 raincoats
costing nearly $4,000
This was the first arrest Of an arrny
ofiicer since the department Of Justice
started It's investigation into the sys-
tenn by which contingent fee agents
nave made millions by obtaining con.
tract for manufacturers who were
charged commission. Other arrests
may follow soon as 1t is known that a
number of contractors in New York
and elsewhere are assisting the gov
eminent In running down agents BY
whom they have been approa ched.
Lieutenant Staley is about fifty
years old and came originally from
Iowa. He entered a training camp in
that State last summer and later was
transferred to Fort Smelling near st,
Paul, where he was commissioned in
August. Subsequently he was trained
at the quartermaster's school at
Camp Dodge. Iowa, and last December
18th was appointed an inspector in the
quartermasters departm for rain.
coats and other army rubber goods
He has been stationed in New York
most of the time since.
After being arrested to-day Lieut..
Staley made complete confession of
his part in the transaction. department
of justice officials said and gave much
valuable information which may lead
to the detection of other cases of
fraud. He will be tried by court
martial.
New York. June 1s.-Nfore than 800 900
contracts involving plants In 70 cities
throughout the country are embraced in
the governments nation wide crusade
against war contract grating. accord
ing to statement issued here tonight
by DR.. John F.. Demund.
Yesterday we visited more than 30
manufacturing and supply houses and
gathered up all their books Of record
and other important papers," ne said.
Washington. June 1S-The shadow Of
completely in the extensive scheme by
which commission as middle men in OBJ
tanning contracts for manufacturers to.
day extended to scores Of business men
and attorneys in Washington, New York,
Boston and other cities, and even to 4
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 Congress to assure the
awarding Of contracts to special concerns,
and in turn were to receive compensation
II the contracts were landed.
A large proportion of these cases. dis.
closed by correspondence and other doou-
ments seized in the simultaneous raids
yesterday on offices Of several hundred
manufacturing plants and forwarded to-
day to the department of justice, were
not prompted by sinister motives, ON
Gals believe, and prosecutions will not
follow. Many others, however. appear tho
result Of carefully planned plots to squeeze
millions from contractors, who in turn were
to add the contingent fees to prices which
| the government was required to pay.