The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-06-19
DESIGNS To END
CONTINGENT FEES
Attorney General Recommends
Covenant in All Govern
ment Contracts.
TO SAVE MANY MILLIONS
Both Contractors and Admin
istration Will Profit By
Elimination of the
Middleman.
TO SAVE MANY MILLIONS

WASHINGTON, June lS-Attorrey-
General Gregory recommended to the
heads of all departments of the gov
eminent today covenant IN contracts
which is designed TO end the con-
tlngent fee system in all government
contracts 1t is estimateds that mill
lions of dollars will! be saved both to
the government and contractors by
the elimination of the middleman in
the negotiation Of government con-
tracts.
The Recommendation OF the attor-
ney-general followed quickly upon
the heels of wholesale raids all over
the country for the purpose of seizins
papers OF firms and individuals hav-
ing government contracts These pa
pers. which are being forwarded to
Washington for examination by the
department of justice. reveal the ex-
istence of a system by which the con-
tractors have been bulldozed and
made to pay over a large share of
their earnings, and purchasing Of
ficers of the government have suffer
ed in reputation by the imputation or
direct claim that they could be in
fiuenced by the contingent fee agents
who solicited the work of negotiating
contracts.
Names of senators and congressman
have been used by these agents in
the attempt to establish their in
fuence" in the matter OF obtaining
contracts. Senators and congressman
are clearly in their rights IN seeking
fair play and equitable distribution of
work in behalf of their constituents
who are seeking government work.
but in practically all the papers
seized by the government operatives
in their raids it Is clear that the use
of the names OF membe Of congress
prominent government officials and
purchasing officers was clearly un
authorized and unwarranted.
Put Stop to Evil.
The object of the department of
justice is to put stop TO the system
and end a growing evil. There is lit
tie TO be expected in the way OF, prose
cutions. but where there is evidence
OF conspiracy in the negotiation of
a contract, the case will be probed to
the bottom and prosecutions under
taken where the proof 1ustiaes the
step.
Heads OF the great government de-
partments most active in war work
negotiating millions upon millions of
dollars in contracts daily are deeply
interested in the evidence TO be OBJ
tanned from the raids. Wherever any
omCer or these departments appears
to be involved. either through mer-
cenary motives. through favortism OF
lax methods. a court martial will be
ordered and the guilty punished.
Some contractors who appear to
have wilfully violated the provision
again paying contingent fees for gov
eminent contracts, will suffer by hav-
ing their contracts cancelled and the
amount paid in illegal fees deducted
from the amount still due them on
contracts from the government.
All such actions are expected to
clear the atmosphere and bring the
producer and manufacturer and the
government purcha-ing a S
closer together and permit the con-
tractor to make more favorable terms
With the government by the elimina-
ton OF the fees demanded by the
members of the system. In some
cases these fees amounted to as high
as 20 per cent of the contracts and
ranged from that down to per cent.
Even at the latter Inquire the conting-
.ent fee profited handsomely in view
of the tremendous expenditures of
the government. The recommended
ton OF Acknowledgement Gregory to-
day Is regarded as a potent remedy
against this evil in the future.