South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-07-06
TO INVESTIGATE
MOVING PICTURE
FRAUD RUMORS
Object of Probe Is to Deter
mine Extent of Depart
ment Activities.
Special to The News Time,

special o The News Times
whsHINGTCN. July 5.-senss,-
uonal rumors OF moving picture
frauds in connection with the milf
tary and naval operations Of the
government will be investigated b.
the special committee created by the
house 10 probe for war scandals.
Chairman Graham OF tb. select
coiaWittee has sent 20 the VAR.
navy agricultural and other depart
Inents a qucstionnaire which Is ex-
pected TO establish the laundation
Tor the Investigation by sho~ing tne
extent Of the activities of each de
partment On thc moving picture
field Asked the purposa Of this
questionable Rep. Graham said.
The object of this Investigation
is 10 develop the extent and scope
OF the moving picture activities car
ried on BY the different departments
81 their various branches, 20 deter
mine the cost OF production and cir
culatiOn and the extent of the rev
cnue. " any. from such activities,
and the degree 20 which such activ-
tiles may bc reduced. 20 ascertain 20
what extent motion pictures made
by manufacturers and other persons
for advertising purposes have been
circulated at Governmental expense.
the revenue therefrom and TO what
fund such revenue has been credit
Cd.
Robbed Of Millions
That the government mas been
mulcted OF millions IN the prepare
ton and distribution Of motion pic
lures and that the investigation Will
show that private individuals have
become rich IN the traffic in motion
pictures at the gov ernment's eX-
pense are some of the allegations
that will be inquired into.
According TO the investiga tors
the pictures were prepared By the
government for its propaganda cam
paigr but were then turned over 10
private motion concerns which had
the available facilities for distrib-
uting the pictures throughout the
country.
The pictures in question were OF
such widespread interest that they
attracted universal attention and III
every city in which they We're
shown large crowds OF persons wait
ed outside the thca1er doors for a
chance TO gain admission TO see the
pictures Admission was charged
OF course. and at least one OF the
Hlms was declared 10 have made as
much money as some OF the nlms
put out by the private ium cont
panies for their highest paid stars
To Make Probe.
Just where the money went that
was made by these aims is TO DC
Investigated BY the committee. The
ALLEGATION Is that at least a part OF
Ihe profits were turned back by the
film concerns 10 employees Of the
government departments which put
out the films
Because the treasury mas no ac-
counting OF moneys received from
this source the committee Will try
10 md out whether employees of the
governmental departments pocket
I'd the proceeds OF the hl-nS which
should have gone TO the government
and offered to make no accounting,
"A hatever, Of the money thus re-
ceive,d Inquiry also will be made
as 10 whether private film corpora
lions made checks in payment Of
these accounts payable 10 iHdividu-
ais instead OF 10 the government.
One government clerk, ordinarily
employed at $1,000 a year, is al
legged 10 have invested in a quarter
OF a million doll-rs' worth Of bonds.
Several other government employees
are said 10 have grown suddenly
opulent.
Sec'y Of War Baker Is as much
interested in getting at the facts IN
the case as the committee and when
ne is able 10 provide certain nfor-
nation requested the hearings viii
start.
Chairman Graham OF the select
committee had been hopeful that
public announcement Of the COM
nlittee's inv estisation OF this SUD
1ect would be withheld until all the
facts were available. but when ne
learned today that the facts were Ia
the possession OF newspaper men
he told the whole story. Since the
charges are not officially a part Of
the government record, IL is neCes-
sary Tor the time being TO withhold
the full statement Of the alleged
graft against the government. hut
that the charges will IN time be air
ed uublicly is now certain.