The Hays free press. [volume] (Hays, Kan.) 1908-1924, 1918-07-04
AN ARMY OFFICER
GUILTY OF GRAFT
Lieutenant Under Arrest in New
York Charged With Accept
a Contract Fee.
MADE COMPLETE CONFESSION
Department Of Justice Gets Valuable
Information Which May Lead to
Many Other Arrests.

Washington, June 19.-The trail OF
the governments pursuit Of illegal
profteers on war contracts today led
to the arrest in New York of Lieut.
James c. Staley, a reserve army off
Ger, on charge Of accepting money
from the Truefit Raincoat Company OF
New York for q contract which he
promised TO procure.
The arrest was made by depart
ment of justice agents. who had fol-
lowed the officer during his inspec-
ton Of the plant Of the Raincoat com
pany, whose proprietors acted in Co
operation with the government TO de-
teet the fraud.
After being arrested today, Lieu
tenant Staley made a complete con-
fession 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 viii be tried
by a court-martial-
No More Raids Planned.
At the department of justice 1t was
said that no more raids are planned
Immediately.
The shadow Of completely in the ex-
tensive scheme by which commission
agents made millions out of govern
ment war orders by acting as middle
men in obtaining contracts for manu-
facturers. today extended TO scores OF
business men and attorneys in wash
ington, New York. Boston and other
cities, and even to a few secretaries
OF mpmho-S oF 1ou1razS
Other Arrests May Follow.
4 large proportion Of these cases,
disclosed by correspondence and other
documents, seized in raids yesterday,
were not prompted by sinister mo-
tives, officials believe, and prOsecu-
lions viii not follow.
Reports of only one arrest, an IN
named army officer in New York.
reached here today Officials init
mated other arrests may be made soon
IN connection with the charges on
which four men are now under indict-
ment here-cOnspiracy TO violate fed
eral laws forbidding the subletting Of
contracts, and payment OF contingent
fees
Conspiracy Is Nationwide
Washington. June 1s--A nation
wide conspiracy between manufsc
turers and contractors agents in
Washington to solicit government war
orders under an agreement TO pay
commissions Illegally 70 the agents,
was disclosed today by the Depart
ment Of Justice simultaneously with
the announcement raids were made
ness offices throughout the United
States in search Of papers showing
the scope of the illegal practice, and
four Boston business men were indict-
ed in Washington on charges Of act
ing as contingent fee agents
Agents Operate Secretly
At least four or five contractors
agencies exist openly in Washington,
it is said, ready to accept commits
siOns to negotiate contracts
Officials suspect a number OF men
operating secretly, some in eO-opera-
ton. with others and some Individual
", who maintain headquarters in
Washington hotels and practice their
profession slyIy. Manufacturers who
have been unable in the past to obtain
contracts are said to have been their
best customers, and in many cases
the agents are said TO have secured
orders for their clients.
The identity Of these agents has
not been disclosed by the government
Neither did the Department Of Justice
today make public the names OF CON-
panies whose records we're examined.
There is nothing criminal in their con-
duct, il was pointed out
Many Contracts Invalid.
Officials Indicated they had evil
dence that perhaps hundreds OF con-
tracts have been made with msnufac-
turers who were under pledge to turn
over to contract commission agents
in Washington, New York and else
where a percentage Of their profits
Army Officer Sentenced
The conviction Of a Michigan con-
tractor who cOnniYed with an army
officer to procure a government con-
tract recently has been obtained. The
contractor was sentenced TO five years
in the penitentiary, and the officer
was courtmartialed and given = 20
year sentence.