The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-12-16
GOVERNMENT
WAS CHEATED
SAYS GRAHAM

fBy Associated Press)

@fBy Associated Press,
WASHINGTON. Dec. 1e. - Repre-
sentative Graham. Republican, Illinois,
chairman of the select committee In
yestigating expeditures by the war de-
pArtment In . speech today, In The
house. reiterated charges he made ~
Gently that interests Of the eovern-
ment In many war claim settlements
have not been sufficiently guarded,
adding that in many cases the eUv.
eminent has been deprived a iarEo
sums Of money to which u rightfully
Is entitled" s-.--...,.s..-
Large sums have, been. allowed con
tractors through unfair salva9e valuea
for raw materials and government Of.
hcials. charged with the responGbilr
tty of adjusting claims haSe not ex-
ercised sufficient vigilaace h prQtoc4,
Ing government interests, Mr. Graham
charged. He urged submisstou Of an
claims settled or pending with the
war department to an impartial board
for review and flnal settlement.
Reports on MIilJone.
From Secretary Bakers report OF
settlements Chairman Graham said
The original answer was erroneous
and the committee Instructed an &C
countant to review the figures given
by the secretary. After m extended
investigation the accountant reported
that the amounts expended by the war
department % given BY Secretary b.
ker, are on balance from e171,682. 81
as . minimum to $1s4.945.s3s as q
maximum" '.
Fifty per cent Of informal con-
tracts suspended by the armistice
have been adjusted with damages to
the war department" Representative
Graham continued. I'm investigating
the various matters 1t has not been
possible TO nnd anywhere . complete
record OF the Transaction.
There were private conversations
BY the various and socalled technical
experts with merchants and business
men ana with claimanta, - . result OF
which -ciaims were allowed and large
sums OF money paid. When It = IT.
tempted to ascertain the exact basis
OF these settlements, no record 10 to
be found" s..-,-E-
On the .settlement .oR TIA American
Can connpany's contract. the speaker
said, "the government lost faally. n
per cent on }s67, ,7S1, the cost Of tin
plate. OF $147.514 more than It should
have lost. -
Attacked Sale Method.
Representative Graham attacked the
method Of sale BY the war department
of 100.O00.000 pounds Of surplus cop
per, held when the armistice was sign
ed. Copper producers, no said, were
paid large sums in excess of correct
amounts due for government copper
during the war.
1T appears that the producers, In
the sale of their product through the
United Metals company. secured great
and substantial profits and in the
purchase OF the surplus copper from
the government, through this same
single agency, gained control Of the
market. and made substantial prof
its upon the same second time. 90
"The committee is convinced, he
continued, that the alleged settlement
is unjust and unfair to the government
and that in its making the interests
of the government have not been prop
erly defended. That 1t is also tine
tured with fraud. there can bc little
doubt. That large amounts Of prop
erty have been disposed Of In this set
tlement which tho government should
have retained, is also obvious. It 10
equally as apparent that certain Of
ficers and agents Of tho United States
who were charged with direct respon-
sibility In the matter. failed to do the
things htey should have donc to pro-
tect the interests Of the government,
or connived and confedereted with the
claimant, or were SO careless Of their
duties as to call for the most severe
criticism"