The Washington times., 1920-06-30
$4,000 Bond Required From
Clerks Accused OF Defraud-
ing Soldiers.

Salisbury, OF Buffalo. N. Y. Patrick
OBrien. OF Des Moines. Ia. and
David M. Griswold. of Brooklyn. N.
T.. were remanded to Jail when they
failed to make bond.
100000 Is INVOLVED.
Nineteen ex-serviee men today COM
municated with the District Attorneys
office and volunteered to appear and
testify against the three defendants.
War Risk officials today estimated
that more than 500. 900 is involved in
csnss OF alleged fraud to the investi-
gated In connection with the charges
preferred by Joseph p. Delavigne. q
former service man OF Prescott, Ariz.
c. w. Arth, Assistant District At
torney, Is representing the Govern
ment in the prosecution. william E.
Leahy. former assistant district at
torney, has been retained as counsel
for the three War Riskers already ar
rested.
Seven other War Risk employees,
two of them women. were Questioned
today in connection with the Della
vigne charges.
MORE ARRESTS PROMISED.
Several more arrests, In connection
with the fraud scandal will be made
today. according to w. II. Moran,
chief OF the Secret Service. 1t 10 ex-
pected that before the Investigation
10 at an end. more than nifty arrests
will be made.
George Cooksey, Of the war Finance
Board: r. G. Cholmeley-Jones, director
OF the War Risk Bureau and Chief
Moran Of the Secret Service held .
conference this noon. regarding the
scandal. Drastic measures Of prose
cution will be taken as soon as the
arrests are made.
Several employees of the CLAIMS divi-
sion of the War Risk were taken 10
the office of Chief Moran this morn
Ing and examined. Most Of the en-
ployes examined will be held as wit
nesses.
Secret Service agents worked all
morning at the War Risk Bureau. ex-
amining witnesses and gathering de-
tailed Information that may lead to
the arrests of 4 great many exami-
ners in the claims division. Arrests
will be made as soon as all the neces-
sary evidence is obtained. according
to Chief Moran.
The warrants for Salisbury. O'Brien
and Griswold were sworn out by John
Q. Slye. OF the office of the United
commissioners. The three pris-
oners are college graduates and
is a lawyer. O'Brien and
Griswold were acting In the capacity
of lawyers at the bureau & ~ expected
to take the examinations for the Dis
trict of Columbia bar.
HOUSTON CONDEMNS TT.
Secretary OF the Treasury Houston
issued a statement today calling the
matter a contemplate conspiracy to
defraud veterans Of the war of com
due them as a result of
incurred in the line of
duty"
"All those concerned in this out
rage will be prosecuted to the limit
of the law" said Secretary Houston.
The men involced in these crimes
were engaged in the task OF handling
claims of ex-soldiers for compensa-
ton.
The method employed was as fol-
lows: A soldier, presenting his claim
in person, was advised by one of the
who handled II that he
was entitled to 5000 or $500. At the
same time the employe denounced the
fact that the award was so small.
Taking the matter under further con-
sideration, the claimant would be told
an award for a greater amount was
possible. but that, of course. he would
want to share in the excessive pay
ment. The claimant, agreeing, a
check for the larger amount was
made out. The truth was that the
soldier was entitled to the larger
amount and to the full proceeds of
the check"
AsHURsT CAUSED PROBE.
Dclavigne's case was the nrst one
brought to the attention of the au-
although II Is said that
there are several hundred similar
cases. Delavigne Is at present living
with his parents at 1884 Spring road
northwest. When he presented his
claim for compensation he was told
by one Of the men arrested yesterday
that he was entitled to $500. The
at the some time. de-
nounced the fact that this was so
small. and said that he would be able
to put through an award for $4,000,
provided Delacigne would share the
extra 5000 with him. The former sol.
dier refused this and went to Senator
Ashurst OF Artzona, who was then in
the hospital, and recited the incident
to him.
Senator Ashurst then brought the
matter to the attention of Chief Mo-
ran, of the Secret Service, who inves-
tigated the matter and caused the ar
rests of the three alleged conspira-
tors.
Two girls were among the witnesses
taken into custody by the Secret Serv-
Ice agents. They are employed in the
claims division of the bureau, where
all the fraudulent work Is said to
have been conducted.
One OF the employees taken into Gus
tody was a colored messenger of the
claims division. He Ia a former SOL
der and Is said to have received com
pensation for some disability. alleged
to have been incurred while In the
service. II was stated that he split
his share OF the compensation with
one OF the examiners arrested.
LOSES S100 DlAMJfi0 RING. :
A solitaire diap,ond ring belopu-