Evening star., 1921-07-31
States Charged With Having
Sold Property Given by
Government.
FEDERAL PROBE STARTED;
WIDE SCANDAL PROMISED
Equipment for Road Building De-
clared Sold for Ridiculously
Low Prices.

MlllonS or dollars worth Of surplus
war materials turned over to the
states without cost by the federal
government for road-building only
have been sold by the states at pri-
vate sales at ridiculously low prices.
1t was learned last night. Trained
investigators were started on trails
Yesterday TO determine to what ex-
tent this pracice has been going on
and Just how much Of the federal
property has been put back in pri-
vate commerce through this great
national steal" That is what off,
cials termed it.
The practice of some Of the states in
applying for this material for build
ing roads and then selling 1t may
develop into a national scandal when
the details are unearthed by the in
vestfgators who have been instructed
to go out and expose the people re-
sponsible.
Congress May Take Hand.
While the present official investiga-
ton is being directed by the admin
istrative branch Of the government,
Congress also is expected to take a
big hand in an investigation and ex-
pose OF the practice. Representative
Clarence MacGregor of New York
is looking into the matter, and Is ex-
pected to present the facts to the House
as soon as his survey is completed. He
was out of the city yesterday. and 1t
was said at his office that he had all
OF the papers in the case with him,
and was making a study of the re-
suits Of his investigation so far,
while he was away. 1t was also learn
ed that he had information that
several states to which this road
building and woodworking material
had been allotted had disposed Of 1t to
private individuals.
tnator Wadsworth Of New York
also 10 conducting an Investigation
to -develoP reports along these lines
which have come to him. and he Is
keSpfng in close touch also with the
inquiry directed by Representative
MecGregor.
The material which was turned
over to the states and which it is
asserted has not been used by them
for the purpose it was given to them
by the federal government includes
automobiles, automobile trucks. spare
parts for the machines, tractors. road
scoops. cement machines, gasoline
engines. etc; in fact, everything
needed by the states to construct
roads, except the actual materials
Of which the road is constructed.
Equipment for Road Work.
After the war. the Army had mil
lions OF dollars worth Of surplus
machinery on hand which could be
used for road work. and there de-
veloped a big demand for improve
ment of the country's highways. The
suggestion was made that no better
use could be found for this material
than to turn it over to the states
for the purpose of building better
highways. and a law was passed
giving the War Department author
ity to transfer the property. Much
Of it has been transferred on re-
quest by the states.
The matter came to the attention OF
the government during the investiRa-
tions Of surplus property disposals
and the large demands of some Of the
states were investigated It was de.
veloped that sope of them obtained
more of this valuable material than
they could use. and preliminary in
vestigations so far conducted develop
ed the Information that some of the
states were selling the federal gov
ernment material and were not using
it to build roads, which was the only
purpose for which it was turned over
to them.
The present investigation will be to
determine not only what states are
involved, and how much Of the prop
erty has been disposed of. but just
where the culpability lies, fix the
blame and seek to have punished
those responsible. -,
Government Tlameless.
The federal government is not in
any way to blame for this practice, it
was pointed out last night by an