The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1919-07-08
That President Organized
Secret Government u. S.
Before Declaration War is
Charged.
REPORT SAYS BIG
BUSINESS" FAVORED
Disorganization of Govern
ment and Mismanagement
of War Business Affairs
Among Charges Made.

Washington, July 7-Charges that
the president organized the council of
national defense before the war was
ueclared In absolute violations of law
and thereby created a secret govern
ment OF the United States" which
fomulated war legislation, dictated poll
cies the country was to pursue and
nefrlended big business" were made
today by Chairman Graham OF the spe-
cial house committee investigating
war department expenditures.
Miputes of the council were read to
the committee by Mr.. Graham, to-
gether with a report in which he as
serted the council assumed such broad
powers that Major General Goethals
former chief of the purchase, storage
and traffic division of the war depart
ment, defied 1t, cabinet members pro-
tested against ats activities. and judge
Gary, presideiit or the United states
Steel cory0ration. rAccuA-d is Of op-
Grating "ih flagrant violation Of law"
Mr.. Graham declared the president
created the secret government" by ig-
noring and reversing the intent of con-
gress in authorizing the establishment
of a council of national defense in Au-
gust, 1916.
As authorized by congress. he said
the council was to be composed of six
members of the cabinet who were to be
the real executives and seven civilians
to be selected by the president, who
were to act in purely advisory ca
pae{ty.
Instead of doing this, Dir. Graham
asserted, the president n6de the ad-
visory commission the real executives.
clothing them with unprecedented and
illimitable powers"
Behind closed doors, weeks and
even months before war was declared.
he said, these seven men designed
practically every war measure which
congress subsequently enacted. They
devised the entire system of purchas-
ing war supplies. planned a press CEN
sorship, designed a system of food con-
troll an dselected Herbert Hoover as
its director. and even determined on
the daylight saving scheme.
Conceived within the law. but
brought into existence in absolute vio-
lation of law, il is not surprising to
find this secret government of the
United States persistentIy ignored and
even violated the law: that it allowed
interested parties to fix the prices of
war materials; that it put the people
of the country to incalculable unnec-
essary expense, and carried things with
a high hand"
Mr.. Graham declared that when Ma,
jor General Goethais was called "at the
eleventh hour to rescue the war de-
partment from the public obliquy
which was fast settling uDon it as a
result of the methods and incapacity
of the commission. he repudiated and
pra ctically defied it.
"Our soldiers were actually dying of
pneumonia in the camps because of
lack of proper clothing and blankets"
Mr.. Graham said. "and General Goe-
thaIs avumed the duties of uuarter-
master general only on condition he
would be given free scope in the per-
formance of his duties. >unhampered
by the council of national defense
'Immedia tely he took from the mem
hers of that council their power to or
der purchases and fix prices and soon
dispensed with the services of those
members of the advisory commission
who had so dADlorablv bung1ed the
control of supplies for the army
Judge Gary advised the advisory
Mr.. Graham said. tnat it
was operating in disregard of the 5her-
man law the Clayton act, ana ''all
other statutes that are supposed to
regulate business. particularly big
business" When the attorney general
was called upon by the commission to
answer Judge Gary. Mr.. Graham said.
he answered that the matters referred
TO as violations of the law We're mat
ters of national policy, rather than
a legal question.
Afterwards" Mr.. Graham declared.
when there was evidently a discus
sion in congress as to the legality of
members of the committees on the
council buying from themselves. the
council discussed this general policy
and ii was suggested that this en-
ba arrassment might be removed by the
plan of the committee reorganization
now under consideration
The minutes show that on account
of this so-calied embarrassment the