Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1918-02-21
|ND|CT Il AT
new YORK IN
GIANT STEAL
Millions of Dollars Involved
in Theft of U. S. Supplies
Over Country.

New 1Ork, req. SIs-Au allckcu
countrywide plot involving illegal
profiteering in army cloths at the
expense Of the government was
disclosed here today with the in
dictment by the federal grand jury
of IL men, one q clerk in the quar-.
termaSter's department OF the
army, on charges Of fraud.
Investigations which will ex.
tend to other cities, federal au.
thorities here believe, will show
the government has suffered to
the extent of $4,000, 900, but at the
same time it was stated the mdict-
ments today would serve 10 termi'
nate further cOnspiring and save
the government from millions
more in losses.
Eight Of the defendants are manu-
facturers of army uniforms.
The profteering is made possible,
the federal investigators explained. by
the methods in which the cloth is
cut. From material which the gov
eminent estimated would provide a
dozen uniforms, the manufacturers
would cut ten or less, according to
the authorities and the excess cloth,
known to the trade as clippings
would be resold, either to the govern
ment itself or to other manufacturers.
Kept 5 Per Cent.
Some of the defendants, it was said.
represented to the government that
their clippings amounted to 3 per cent,
whereas, actually, due to their meth
DDS of cloth cutting, they amounted
to per cent, the difference repre-
senting the excess cloth alleged to
have been retained.
Owing to the alleged activity OF
civilian clerk in the army in connec-
ton with the purported plot, 1t was
easy for concealment to be effected.
So bold were some OF the defendants,
according to Investigators, that bolts
of stolen cloth were displayed openly
in windows in the jobbing district.
"Clippings" Are Sold.
clippings" were sold to manufac-
tturers in Chicago, st. Louis and
Greenville, ILL.,, and large quantities
of the cloth have been recovered at
those places, it was announced. the
manufacturers purchased innocentiy
and will not be prosecuted. Clothing
houses in other western cities also
have obtained cloth, not knowing II
was stolen, the investigators said. ana
this has not yet been recovered.
Cloth and other army supplies
worth approximately $5,000,00O were
stolen, according to Lieutenant George
d. Barnitz of the New York police
force. who, in conjunction with the
1 federal authorities, investigated the
alleged frauds which he said, includ-
ed thefts in other parts Of the coun-
| try, He asserted that a plot OF ma
tion-wide proportions had been I'M
covered and that investigations in 9TH
err cities probably would be under
taken.
Frauds Over Whole Nation.
Frank NJ. Roosa, United States as
sistant district attorney in charge o.
the prosecution said that because. thu
inquiry was incomplete he could no
announce yet the extent of the frauds
but that Barnitz's estimates OF tht
losses did not seem at all out OF pro
portion inasmuch as the frauds affec
army contracts throughout the coun
try. The indictment against Davidson
contains 16 counts and charges hin
specifically with stealing 1000 bolts o
army cloth valued at 100000.
Davidson Is one of those accuses
together with Hyman Horwitz and hi
son Benjamin, in business as Horwit
and Muskowitz; Barnet Tietz Of Z
Tietz and company; Jacob Weinsteil
!. and his son; Abraham Pursch an
Leon Levine of Pursch and Levine
Barney Robinson and Morris Alewitl
shipping clerks in the employ Of tn
New York Manufacturers compan!
, all of this city. and Ira l.. Janowsk!
civilian clerk in the quartermas
{ ter's Office here.
Received Army Cloth. Charged.
The manufacturers are all accuse
of having received ard retained arm
cloth. Robinson and Alewitz al
!. charged with perjury before the gran
!, jury and Janowsky is alleged to hal
destroyed government receipts so ,
: to conceal thefts Of the cloth.
!. Insist Austria