New-York tribune., 1921-06-17
Harness Firm
Denies Harding
- sSsN
Can Halt Deal
LACKS Power to Cancel Con-
tract, Says Counsel for
Ex-Of6cers Accused of
Profiteeriiig ON Arm y
Criminal Phase Unsettled
Jaugherty Indicates Prose-
cution Will Follow if
Bad Faith Is. shown

WASHINGTON, June 16.--Frank Ho-
gan, counsel for the United States Har-
ness Company, of Ransom, w. Va. filed
brief" to-day with President Har-
ding in which he argued that the Exec
utive was without authority to order
cancellation of the contract between
that company and the War Department.
The harness company was created for
the purpose of taking over and dispos-
ing of surplus army harness, Mr.. Ho-
gan said, and it would go ahead with
its plans.
Attorney General Daugherty said to-
day that further investigation would
develop whether criminal proceedings
would be instituted by the government
in the harness case. He explained that
in all Investigations of wartime con-
tracts the Administration policy was
directed first at determining whether
contracts had been fair and honest.
Where the facts justified, he added, the
Department of Justice would take ac-
tion to recover funds for the govern
hiSHe anu WHeic Sne AaCtS were SUM
ciently aggravated it would proceed
with criminal prosecutions.
The Attorney General declared that
in the conduct of the war contract in
vestigations the government was up
against some very well-laid plans and
could not indicate its progress without
damage to. its cause. Ships, he added,
were running freely to European ports.
Denies Presidents Power
Mr.. Hogan said the President had
been informed that the harness com
pany had been assured at the War De-
partment that cancellation of the con-
tracts would not be attempted without
a hearing, which, he said, had been re-
peatedly requested of the Department
of Justice. If officials chose to continue
their present policy, Mr.. Hogan added,
the company was prepared to fight the
question out in the courts.
''The harness company" the state
ment said, takes the position, first,
that there is no constitutional execu-
tive power to declare q government
contract void; second, that this power
rests only in the courts, which can act
only after hearing; third, that it's con-
tract was not only entirely lawful, mu-
tually obligatory on the government
and the company, but that under it
the government and the country have
been immensely benefited.
1.-THE company and it's officers have
been proceeding under the terms of
the contract in the utmost good faith.
They have repeatedly requested fair
hearing from the Department of JUS
tice, offering to furnish any informa-
tion within their power. There has
been constantly on duty at their fac
tory a regular army officer, under who Sc
supervision they have transacted all of
their business.
"1f denied a hearing in the depart
nlent they stand ready to meet un-
finchingly any attack that may be
made in the courts"
Assistant Secretary Wainwright of
the War Department, the statement
said, had visited the companys West
Virginia plant and had reported that
the contract was highly beneficial to
the government.
at has been we'll known" Mr. Hagan
added, 'that the authorities at the
War Department have not been fa-
vorable to any attempt to cancel the
contract despite strong political pres
sure that has been made to bring
about that result"
Weeks Not in Case
Secretary Weeks said financial ad-
vantages the government might de-
rive from the contracts had nothing to
DO with their legality To the best
of his knowledge, Mr.. Weeks added,
the arnulment of the contract was not
caused by political influence and no
suggestion Of the sort had been heard
by him.
"The case is in the hands of the
Attorney General" he said. 81 have