The sun., 1919-08-02
RYAN IS UNDER FIRE
IN AIRCRAFT PROBE
Frear of Wisconsin Says Board
Wasted S12,OOO,000 to
Benefit st. Paul Road.
Special DespatcA to THs Sun.

WASHINGTON, Aug. Charges thai
John d. Ryan. fnancier and former heat
Of the Army Aircraft Production Board
used his ofncial position for the benefi
of his personal interests were made to
day by Representative Frear, (wis.). II
hearings before the subcommittee OF
aviation of the special House commit
tee on War Department expenditures
Mr.. F'rear is chairman Of the sub
committee and made the charges II
questioning Secretary Baker.
Mr.. Frear, after referring to severa
sources of information and evidence o
previous hearings, sought to substan
tiate the following charges against Mr.
Ryan:
First. that approximately $4,000
900 was used by the Spruce Produc-
ton BOARD to build thirty miles OF
railroad in Wisconsin, ostensibly for
logging purposes in obtaining spruce
for airplanes. but really to complete
an important missing railroad con-
nection desired by the Chicago. Mil
waukee and st. Paul Railroad, OF
which Mr.. Ryan is a director.
Second, that although Mr.. Ryan
while in the War Department did
order the completion of the road, II
was approved by Edward B. Stettin-
ius, an assistant to the Secretary of
War and that the president of he
st. Paul road was the chief adviser
that the road be built.
Third. that the road cost the Gov
eminent about $4,000 a mile, while
the average logging road can be built
n mil Nd
through country having no spruce
along the right of way. the only
supply being near one terminal.
Fourth, that tina United Metal Sell
ing Company, in which Mr.. Ryan has
an interest. has been able to gain
control OF the copper market through
a loose contract of the War Depart
ment for the sale to 1t of 100, 900. 900
pounds Of copper. Frear asserted
that 1t was the understanding that
the army's surplus copper which was
sold to the company was to be de-
livered in fifteen monthly install
ments, the price to be determined by
VI market
roady bought So, 200, 900 pounds of the
copper at l6 and IL cents, thus en-
abling 1t to force the present price to
controlled s5 per cent of the copper
supply now.
Secretary Baker admitted that $4,000
600 pounds OF copper had been sold {
the company, but said that the onl
agreement was that all the armys SUI
plus was to be taken in fifteen months
| and that II was not obligatory that tn
metal be sold in monthly instalments.
a full investigation, Mr.. Baker insisted
| would show nothing improper concernin
the official conduct of Mr.. Ryan, whor
he loudly praised as a high minded, pa
trlotic and devoted public servant"
Regarding the building Of the railroa
Mr.. Baker said he had heard of tn
charges, but had never been able to sui
stanuate them in a preliminary invest
cation.
Mr.. Frear referred to a telegram ser
TO the chief of staff by Major Howe
which made virtually the same charge
| that were brought out to-day.
Preliminary investigation" Mr.. Fres
concluded, Indicates that the railroad
are attempting TO dominate the lumbe
industry of the Northwest at Governmer
expense and in collision with Governmer
officials and army officers. Indications {
huge gratis In large transactions hay
been found, the complete investigation {
which will involve large people and wi
call for a committee of great force.
ANY further work we might do 4
present might Jeopardize further invest
cation, which will be necessary to prov
, contentious. The situation is very s,
rious and calls for careful counsel"
Mr.. Baker said that in view of the pull
LEFTY given the charges. a final clearin
up of the whole matter was necessar.
~ .
! help the committee In its investigation.
Bids for the resale of the loggin
road will be opened by the War Depar
| ment September Q Mr. Baker said