The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1918-10-09
OLIVER ACCUSED OF FRAUD.
KNOXVILLE MANUFACTURER PUT
UNDER ARREST.
Nine Other Attaches of Plant Also
Held for Action by Government.


Knoxville, 4.-Charged with con-
spiracy and fraud in manufacturing
shells for the United States govern
ment and with violation Of the sabot-
age act in producing shells alleged to
t". so defective as to render inaccu-
rate their fight and trajectory when
fired, William J. Oliver, wealthy head
OF the manufacturing company bear
ing his name, and nine other attaches
of the plant were arrested here this
afternoon. 1t is charged that the
government has been defrauded CT
more than 100000.
The arrests were made by United
States Marshal J. r. Thompson, and
force Of deputies upon a warrant
sworn out before a commissioner by
J. F. TaMzare, an agent of the mil
itary intelligence department. About
900 shells, the Office records and GER
tain tools and machinery Of the plant
| of the William J. Oliver Manufac-
turing Company were seized by the
United States marshal under a search
warrant.
The seized property was placed un-
der heavy guard of deputies. It
vas announced by District Attorney
w. T. Kenner!y that a number OF
officers of the army ordnance depart
nent reached the city today to take
over the plant and operate it for the
government, if seizure becomes neces-
sary.
While the arrests and seizures were
accomplished by the United States
.narshal's forces, Troop F, Eleventh
United States Cavalry, was rushed to
Knoxville from Fort Oglethorpe, Ga,
early Thursday morning in anticipa-
ton of the move and in preparation
for eventualities. The cavalrymen
are camped in the city tonight and
30 far have not been placed on guard
at the Oliver plant The troopers
c. me bn short notice on direct orders
from the war department.
William J. Oliver was released on
81, 900 bond, J. Ed Campbell, Tnos.
P. Roberts and J. S. Waterman,
named as officials of the company,
were released on $4,000 bond each
and John Godfrey, Thomas E. Rob
crts, John Deans, Charles E. Wood,
[ c. G. Weber and J. A. Zeiglers de-
sc1ibed as foremen, were released on
5000 bond each. One Or two other
!. arrests are expected later.
! The warrants, which read against
the defendants jointly, charge con-
, spiracy to defraud the government
and actual fraud by false, padded and
excessive claims for extensions OF
: the plant, it's machinery and defec-
tive shells. In the sabotage charge
it is alleged that holes were drilled
). in shells and filled with lead to give
: them weight; that specifications were
s not followed in several respects; that
, false tests were imposed upon gov
ornment inspectors, all with sucn re-
/ suit as to render the same defective,
v insecure and unsafe for use and cause
the fight and trajectory Of said shells
8 and projectiles when fired to be mac
\ curate untrue and dangerous to the
soldiers of the United States firing the
( same.
\ According to District Attorney Ken
: nerly, Agent Trazzare of~the army in-
: telligence department began working
: on the case following fire at the
Oliver plant, September 16. He was
A assisted by an agent of the depart
+ ment of justice. The results were laid
g before the department of justice at
); Washington early last week and At
{ torney General Gregory telegraphed
r instructions for prosecution.
f The William J. Oliver Manufacture
ing Company is one of the largest
:, munitions plants in the South. It's
$ normal product is farm machinery. In
y 1915 the plant secured contract for
8 shells from the Italian government.
! When the United States entered the
war contracts fc- smells were given
y to the Oliver plant, which brought
a about great expansion in its size. The
plant has been working three shifts q
: day, seven days a week and has had
: All average output Of 900 shells, a
e day.
n T. Asbury Wright, attorney for Mr.:
Oliver and the other defendants, to-
t night issued a statement denying ali
g tie charges against his clients an6t
: quoting Mr.. Oliver as stating the
n charges were the result of spite
work on account of labor troubles at
tho plant.