Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-03-02
ARREST z IN ARMY
SUPPLY CONSPIRACY
Federal Agents Raid Chicago
Offices of Henry and
Ralph Lippert.
ACCUSE BRIG. GEN. CRUISE

pert and his son Ralph II. Lippert, who
were arrested last night on charges of
conspiring to defraud the government
in the furnishing of Army supplies, and
with whose case has been linked the
name Of Brig. Gen. Thomas Cruise. U. s.
A.. were admitted to bail in bonds of
$4,000 each today.
Arrangement was set for March II,
and while awaiting arrival of sureties
the elder Lippert discussed the charges.
The wrong construction has been
placed on my relations with Gen. Cruise
and the auartermastars-,dspa :,
he said. q haze kseypa Gen. Cruise Tor
fourteen years and have always found
him an upright gentleman and a real
soldier.
General Had Retired.
Il have handled contracts for Army
supplies in the neighborhood of 81 ,0OO,-
900, but I obtained them on the basis
OF the lowest competitive bids. Furth-
ermore. Gen. Cruise had retired from
the Army when he became my agent,
and he obtained the consent of the
judge advocate general to become our
Washington agent. He did nothing in
our interest, and had no opportunity
to do anything until after he had re-
tired from the quartermaster's depart
ment. will prove. at the proper
time, that our relations have been en-
The younger Lippert, who is twenty
two years old. is anticipating an early
call to service in the National Army.
He has been employed by his father as
The Lpperts were arrested last night
after a raid on their offices under a
federal search and seizure warrant
asked for by Capt. Melvin B. Ericsson
Of the United States Army intelligence
bureau.
Says General Confessed.
In his statement before Commissioner
Mason asking for the warrant, it was
charged by Capt. Ericsson that Gen.
Cruise had admitted to him in Wash
ington that in January he had re-
ceived $1.500 from the elder Lippert
and that an agreement had been en-
tered into by which Lippert was to pay
him $500 a month.
A large number of papers were taken
possession OF by the oe',
States marshals who conducted the
raid Federal officials saIG rnat IN
cursory examination of some of the
in the Army, as well as men prominent
in public and business life, were mem
toned. 1t was added that the mem
tion OF these names in letters and docu-
individuals with any alleged illegal
deals with the Lipperts or Gen. Cruise,
Find Letter to Senator.
Among the papers sought by the federal
authorities and specified in the warrants
are: Letter dated September /, 1916, to
Senator James Hamilton Lewis, Wash
ington, regarding promotion Of Langhorne
Allen and appointment of j. w. Salladay
as chief inspector Of Chicago quartermas-
ter's department
regarding Julius Rosenwald. particularly
contents in a private "lock box" in room
403. Security building Cone OF Lippert
SUITED.
from E. L. Erickson, United States ar
senal, st. Louis Mo-. and one in regard
to the visit Of Gen. Cruise to the arsenal.
Check for $4.700 mentioned in telegram
from Ralph to Henry" November 1, 1917.
Henry then being at the New Willard Ho-
tel. Washington. D. C.
Also a letter or transmittal and all other
papers and memoranda regarding the
check.
Charge Felonies Against q. S.
Memoranda Of Capt. Goetz initiated
"A. B. p, lieutenant colonial. quarter
master department, Jeffersonville, Ind
Letter dated January 8. 1918. from
Thomas Cruise to H. H. Lppert, Chicago
and schedule on 10000 white blankets re-
ferred to in letter.
After listing the long series of letters
and documents. probably close to 1000 in
all. the federal search warrant charges
| that certain felonies have been commit
ted against the United States that is to
say, the felony on the part Of Henry H.
and abettine Thomas crnse' brieadies
general United States Army, to commit
the onense Of receiving and agreeing to
receive compensation for services rem
dered, and to be rendered. by him in
relation to q contract in which the United
States WAS party
No estimate has been given out as to
the amount involved IN the alleged fraud