The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-29
U. S.PLANS ACTION
IN NITRATE GRAFT
Criminal Prosecution Near In
Waste Of Millions at
Muscle Shoals.
PALMER HOLDS EVIDENCE
Congress for Two Years Has
Been Heard in Denuncia-
ton Of Project.

wAsHINoron. Aug fs.-Criminai pros
ecutions for alleged waste and extrava-
rance OF Federal SMr funds ut the
Government nitrate plant, Muscle Shoals.
Ala. are being considered by the De-
partment Of Justice, Attorney General
Palmer told the House COMMITTEES In
vestigating War Department expendi-
lures to-day. y
His testimony revealed that the De-
partment IL completing an audit OF all
the expenditures at Muscle Shoals.
which run into hundreds Of millions Of
dollars Charges Of graft have been
presened 20 the Department, and the At
torney-9enerai said the audit, which has
been in progress for several months. N
to determine the facts. on which pros
ecutions will be based IL they are deemed
necessary. Already 5000 typewriter
pages of reports on the charges have
been collected and sent to tho Depart
| ment by secret service agents OF the
Government, Mr.. Palmer said.
Chairman Graham t1ll.) of~the House
committee asked the Attorney-General TO
turn over the evidence In his possession
to the committee. but this Mr.. Palmer
refused to do on the grounds that 1t
might give immunity 10 persons who
! should be prosecuted. He referred to
Congress investigation OF few
years ago which. by obtaining informa-
ton from the Department, gave the. pack
efs immunity.
Denounced as "Bis GRAFT"
The whole Muscle shoals project has
been denounced as big graft" by sew
erai members OF Congress during the last
two years. the claim being that there
was reckless expenditure Of public funds
there and no results accomplished. Rep
resentative Longworth (ohio) was par
ttculariy active In the tight to shut OF
additional appropriations for the project
during the war.
| 1t is understood by members OF the
| committee that the Departments inves-
tigation to date, including an audit Of
the books of the AIR Nitrate Corporation
of the American Cyanamid Company,
has cost In the neighborhood of 800. 900.
II cannot at this time say definitely
whether there will be prosecutions or
not" the Attorney-General said.
This is the situation An examina-
ton, conducted by a large number Of In
Ivestigators of the Department OF Jus
tice has been proceeding for n consider
| able time. As many as a score OF in
vestigators and more have been at work
| at one time on the inquiry. The investi-
CATION Is now practically complete and
the Information that has been collected
10 now being coliated and the facts sys-
Dramatically indexed and briefed for the
prosecuting oficers OF the Department
to determine IL crimes have been COM
Imitted.
The investigation has covered q wide
range. and while have not personally
examined the reports as yet I have no
doubt that many things not directly re-
lated to criminal violations arc con-
tanned therein.
Palmer Guards Evidence.
$50 rar, as information IN the reports
relate to prosecutions or possible or con.
templated prosecutions. do not fee
that Il should be turned over until our
course Of action has been determined
IL there are to be prosecutions insti'
tuted and am going to succeed in those
J prosecutions, manlfestly I cannot make
my evidence public before hand. Ny
suggestion Is that the department b
permitted to proceed with the compile
ton OF It's summary OF the data col
lected. After that has been done w
could separate from reports such matter
as does not relate TO criminal violation,
and allow the committee to have thai
matter"
ct have in mind among other things.
observed Mr.. Graham 'the audit 20,
have been having made OF the books o.
the Air Nitrate Corporation Of TIL
American Cyanamid Company. surel,
there can be no question of crtminaiit.
connected with that Information"
THAT may be a fair assumption an'
may not be-" returned tho Attorney
, General. IT do not know. But II OCCUR
to me that II there should be any crmi
nality discovered, this might form
very important part OF the evidence"
: Mr.. Graham suggested that Mr.. Pal
!. mer submit his information In conn
, dence. but Mr.. Palmer protected. sayin
nothing could be accomplished by tn
, committee without first undertaking 4
|, make the summary Of the evidence tina
. he Is now compiling and that for tn
: committee to attempt to make such
summary would delay the department
in reaching a conclusion as to It's cours
OF action