The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-08
PLOT TO ROB U. S.
IN $3O,OOO,0OO
SALVAGE DEALS
Army Captain and N. Y.
Junk Dealer Among Four
Arrested in Detroit.
FAKE BID PLAN CHARGED
Vast Amount Of Munitions
Was to Go Cheaply to Con-
spirators, 1t Is Said.

DETRo1T, June T.-Wlth the arrest
here to-day of four men. one an army
officer. Department of Justice agents
disclosed an alleged conspiracy to de-
fraud the Government in the sale Of
$30.o00,o0o worth Of army supplies to
be salvaged here.
The United States Grand Jury has
returned indictments, 1t was an
nounced, against Capt. Soterios Mich
olson Of Washington. chief finance Of
ficer of the Ordnance Department for
this district; an unnamed army officer
recently sent to France in connection
with the disposal of excess supplies;
Grant Hugh Browne, a wealthy sports
man and race track owner of Detroit.
and Fred c. Collins, Vice Consul for
Greece and president of a local realty
company.
All but the officer in France, together
with Bert Harris. a junk dealer of New
York. are held for trial at Fort Wayne.
an army post here. Harris, who 1t is al
legged was to dispose OF the material.
will be arraigned before the Grand Jury
Tuesday.
The arrests followed an investigation
extending over two months and came.
Department Of Justice .officials said. after
the first deal In the alleged plot was put
through at Rochester. n. Y, Thursday.
The transaction. IL Is alleged, involved
21.OoO tons OF material valued at $780,
600. according to Arthur l.. Barkey.
chief OF the bureau OF Investigation here
Collins, Browne and Harris are
charged with conspiring to eliminate
other bidders for the material, the bids
being held so low that the highest OF
, the three would be far below the value
OF the supplies disposed of.
By means OF a dictaphone installed
In Capt. Nicholson's room in a hotel,
the Federal officers declare. they fol-
lowed the alleged conspiracy since its
inception early In April
Barkey charges Browne with being
| the instigator of the conspiracy. He
Is alleged TO have approached Nichol-
son and to have asked him IL he could
not get some one "on the inside" 70
/ work with them. and is alleged TO have
promised that 1t meant thousands
Three bids are required by the Gov
! eminent before any material can be
sold. This is where Harris and Collins
| are said to have figured in the plot in
| allowing the use OF their names as bid
| ders. Browne, II Is alleged. would
/ make the highest bid, which had already
! been agreed upon, and the contracts OF
sale would be awarded to him. The
price bid was far below the value OF
| the articles.
A young officer in the Ordnance De-
partment discovered the alleged scheme
and notified the Department OF Justice
| He was instructed to get in the conf
dence Of the supposed plotters. which he
did.
Barkey put operatives on the case
| and after two months of untiring work
they made the arrests.
| Capt. Nicholson came to Detroit Feb
ruary IS. From the time of his arrival
| he was constantly under surveillance
and a dictaphone placed behind q
picture on the wall OF his room in a
hotel was constantly under the ear OF
Federal agents.
Last week bids were submitted on
100000 worth of munitions. Browne
was the highest bidder and the Govern
| ment awarded him the contract. II
was Intended. 1t Is alleged, to ship this
material. which was mostly ammunition
stock, to Mexico and thence TO Germany
| Thursday Nicholson went to Roches'
ter, n. Y. followed by operatives. There
he met Browne and Harris. The opera
tives say Browne passed $4,000 &c
Nicholson as his share of the profits
and from this Nicholson is said to have
given the young army officer who wii
working with the Department of JUS
tice officers $4,000. Zach Of them ther
are said to have made up a purse oi
$1,000 by donating $500 each. which
was given to Collins for the use of hi;
name as one OF the bidders.
When arrested $4,000 was found or
| Nicholson.