New Britain herald., 1919-11-12
GIGANTIC FRAUD
 IN VAR CLAIMS
Millions Involved in Settling , Army Contracts

Washington, Nov. 12.-Evidencc inOicating fraud, involving millions of dollars in the settlement of eight big war contracts of the war department, has been found by the house commit- tee on expenditures in the war de- partment, Representative W. J. Gra- Ram, Illinois, chairman of the com mittec, charged in a report to the house.
 The committee, in the report, rec commended to the house the adoption of a resolution calling upon the sec retary of war to review the settle mcnts and, if the government has been defrauded or if money is due it on the contracts. 10 take immediate steps to recover the amounts. The &ction is the result of an investigation extending over several weeks by the subcommittee on ordnance whose re- port was approved by the full com~ Rittee
 In some of the cases investigated" the report says. they obviously seem 10 be tainted with fraud. In some also the committee is of the opinion that. constructive if not actual fraud occurred, vitiating, the settlements
 ''The committee is of the opinion that millions of dollars are involved in these settlements. which the gov ernment might have d right to rccoy- fr if a; proper review, of such settle mcnts were made. Part of the blame Tor this condition is due to the rules &0opted for the settlement of these claims and the laNness and ineficien- cN of the government representatives '4 Some Claims Investigated
 The subcommittee among other things has investigated the following settlement of war claims and con- tracts, 10 wit: erican Can cOm- pany. New York; contract for hard bread Dans;- Stein-Burn Camp and Field Equipment company. Chicago. contract for fireless cookers, cooks chests and bread boxes; Henry Moss < O., Chicago, contract for brand ing &"ons; Briar Hill Steel company Youngstown. contract for corrugated roofing; National Enameling and Stamping company, Baltimore, con tract for boilers and kettles: Standard Steel com pany, Hammond, Ind, con- tract for 964 240-milime eter Howitz- CT carriages; Jones & Laughln com Bany, Pittsburgh. contract for by product coke ovens, and United Met ais selling company, New York, con- tract for copper.
 C'1n all these cases except the last two named salvage values were fixed by government agents and army off cers on special facilities furnished by the government, som etimeS machln- ary and equipment. which were, in ;, the opinion of the COnmittee insuf- | ffcient and unjust to the government f Tn the last case cited. that of the i Tnited Metals Selling Company. i'm 1 lncnSe profits were made by the pro- i ducers of copper by virtue of a com bnation aided and encouraged by the government, although in violation of the law of the land. Report Covers. 5Oe Pages i.---- The resolution originates in the subcommittee on ordnance, and is the result of a very considerable in vestigation the sub committee has made on certain settlements of claims made by the war department, or by the various claim boards under it's jurisdiction since November Il, 1918. A"ThiS invest igation as shown by the hearings of said subcommittee has taken a wide range. It has included investigation of the rules that have heen formulated by the war depart ment for the settlement of such claims and the machinery that has been devised. It has gone into a few of the great mass of claims that have heen adjusted, all of which is incor- pQrated in 300 printed pages of com- rlgttee hearings and is too VO1uminOIiS to be even bricfcd in this report.
 "The act of March ?, under which the claims are settled, has never been tested in the courts. It is manifest however, that congress had in consid- cration when this act was passed the probability or at least the possibility tylat some board or body might desire to review them. he select commit tee has been created since the pas sage of that act. but there remains some doubt whether it is such a re- viewing committee of congress as is intended by the language of such act. If it is. it has no right to bring action 10 recover the moneys now due the government on said settlements. NS1ich through the department of justice, can institute the proper pro-