Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1918-06-18
CONSPIRACY BETWEEN CoNTRAc.
TORS AGENTS AND MANU-.
FAcTURERs SHOWN.
EVIDENCE duplicates
MANY IN FEE GRABBING
Agents Made Factory Men Believe
They Had Influence at Washington
and Indictments by Federal Grand
Jury Results - New disclosures
Promised.

Washington, June 1S.-A nation.
wide conspiracy between manufacture
ers and contractors agents in Wash.
| ington to solicit government war orders
under an agreement to pay commits
sions illegally to the agents. was dis
closed yesterday by the department Of
justice.
simultaneously with the announce
ment raids were made on hundreds OF
manufacturers business Offices turnout
the United States in search of papers
showing the scope Of the illegal prac-
tice, and four Boston business men
were indicted in Washington on
charges of acting as contingent fee
agents.
Hundreds Are Involved.
Even before the results of the raid
were fully reported here last night, off,
Gals indicated they had evidence that
scores, perhaps hundreds of contracts,
have been made with manufacturers
who were under pledge to turn over to
contract commission agents in Wash
ington, New York, and elsewhere a
percentage Of their profits.
Officials said the manufacturers were
led to enter into the agreement by
assurances of the agents that they had
special influence with army officers or
others in charge Of letting contracts
and under threat to use that influence
against the manufacturers. Evidence
was said to have been secured that
some Of the agents already have made
thousands in commission fees.
Leads to Inquiry.
This development led to investigation
of the relations between certain army
officers and these agents and, altho
there is no definite indication that
these officers are knowingly involved
in the conspiracies, Secretary Baker Is
making a thorough investigation in CO.
operation with the department Of JUS
tice.
Last night he authorized the state
ment that he would go to the bottom
of any suspicious case. Secretar!'
Daniels also is keeping in close touch
with the investigation and the whole
situation has been called to the atten-
ton of President Wilson ard his
ca binet.
The commission agents guilty OF
these Illegal practices will be prose-
cuted under conspiracy statutes. and
all contracts made by them or with
their aid are subject to annulment by
the government.
New Disclosures Possible.
Ramifcations of the plot may lead
shortly to other disclosures as sensa-
tional. These may develop as reports
trickle in from the dramatic raids pre-
arranged for o'clock yesterday after
noon, eastern time. when secret agents
Of the department of justices bureau
Of investigation entered offices of sew
eral hundred business firms, showed
their badges Of authority. and spent
several hours going thru letter files
searching for documents which might
shed light on contingent fee contracts.
Eleven Offices in Washington were
raided at the same time, and great
mass of papers Of contract agents
was carried away
True Bills Returned.
AT almost the same hour that the
raids were made federal grand jury
in Washington returned indictments
tracts under the illegal contingent fee
plan against John Fleming, former wa
ter commissioner Of Boston; John T.
Cavanaugh,, Eugene Sullivan, and Jo-
seph kohn, all Of Boston.
These men, it is charged, worked
together in a mysterious. involved
manner, persuading manufacturers to
pay them commissions on contracts
they obtained, representing that they
had special influence with certain I'M
named army officers, and in some cases
actually procuring the contracts and
receiving their fees.
Out Under Bond.
It was officially announced that these
men were detected in their negou-
atoms with B. A Bittan, president OF
the Quaker City Raincoat Company
Philadelphia. who worked with gov
eminent agents in gathering evidence
against them. They were arrested in
Washington recently, and are now at
liberty under bond. The government
while taking action against others sus-
pected Of similar tactics.
Most Of the raids Monday were made
in the east, and a large proportion
in New England. Only the offices OF
the firms suspected Of having entered
into contingent fee agreements were
entered Officials pointed out that
many Of these may have made the ar
rangements without realizing the IL
| legal nature. despite warnings issued
early in April by the department OF
justice.