The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-07-18
RED CROSS SOLD
DRUGS NEEDED TO
COMBAT TYPHUS
While Poland Was Calling for
cresoIis, Paris Brokers Got
Supply for Song.

NEW YORK, July 1s.-Scandals
involving sales of A.ed Cross mer-
chandise overseas became so preya-
lent that a rule was adopted forbid
ding employees to purchase goods for
resale.
Ex-employes were included in this
ruling for a period of SIX months
following severance Of connection
with the Red Cross.
This provision was made August
81, 1920.
Aside from other evidence in hand.
the adoption of this ruling by the
sales board In Paris If itself con-
firms the statement made in former
articles in The New York American
that Red Cross goods were bartered
for profits by Red Cross employees,
OF at their solicitation.
Facts From the Records.
The New York American today dis
closes data involving the following
points, founded chiefly on attested Of
fetal copies Of minutes Of meetings
of the Red Cross sales board:
1. In certain cases goods were sold
by the Red Cross mt loss and then
repurchased Mt higher figures.
2. Through fear Of startling dis
closures, the Red Cross admitted It
didn't like to get into court to defend
its rights"
3. The Red Cross sales committee
authorized whislxey sales, but where
the liquor went and Mt what prices
remains a mystery In many instances.
Those attendant on a majority Of
the sales board meetings were Colonel
Emerson. chairman OF the sales board
Major Moss. comptroller Of supplies,
Major Harrison, head of the bureau
OF salvage; Major Mills, Major Bur.
roughs and Captain Yott. who repre-
sented the legal department.
100000 Francs Profit.
The board. in its inmates of October
~, 1920, discusses losses involving
deals with G.. Jarre, a Paris broker
The American has seen certified copies
of reports wherein Mai. c. Ross Cor
bin, former head OF the bureau OF
salvage. sold millions Of francs in
drugs and medical supplies to Jarre al
d profit of more than 400 900 francs.
Corbin. for mysterious reasons,
was ordered TO cease selling further
supplies to that customer. However
on his retirement as chief of salvage
the Red Cross continued sales to this
chSlOnlft. az ~ tOSS VI uubufUuS VI
thousands of francs. The minutes OF
October ~ read in part:
Major Harrison reported that the
situation is very difficult from our
standpoint. 1t is not practical to
cancel the contract, because prices
have fallen since II was made, and
this would mean material loss. Also,
In addition to this. he felt sure that
e. Jarre would not take the total
amount, but only pick out the mer-
chandise on which he could make
good profit"
Refused TO Go 10 Court.
The minutes state there were
2,OOGOO0 francs worth OF supplies II
be delivered on the Jarre contract.
They continue:
After a full discussion of the
situation. Captain Yott said that the
whole affair is very discouraging
from legal standpoint. because the
Red Cross does not like to go into
Court to defend its rights. 1t was
recommended that the matter be
handled in the future by seeing that
all sales were covered by guaran-
tees"
In the minutes of August 81. 1920,
OF the sales board. 1t is shown where
liquid cresolis, although badly needed
for relief work" was sold in large
lots to Mr.. Jarre. The quotation fol.
lows:
Harrison reported that we have
on hand practically $500 gallons of
liquid cresolis. whereas the list
which Mr.. Jarre has covering items
which he claims were sold him. spe-
Gifted $4,000 gallons. Much of this
commodity has been requisitioned
for relief work since the date of the
list which Mr.. Jarre has. and Major
Burroughs reports that there Is still
great need for this commodity for
our relief work. He further reports
that II would be impossible to re-
place II with any substitute COM
modify or duplicate Il Mt the price
Of Els francs per litre, the price that
Mr.. Jarre will pay.
Needed Drugs Sold.
Major Harrison stated that Mr..
ulman Ia broker) claims to have a
letter saying an agreement would
be reached on the price of this
commodity. While 1t is anticipated
that the Polish typhus work will
call for all the supply of cresolis.
Ulman claims that he must have
II to satisfy his customers"
At this meeting, too, the mystic
rious whiskey situation was touched
on as follows:
Major Harrison approved Major
Moss suggestion made some timo
ago that 1t would be better to
move the stock of whiskey to Paris.
He believed IL can be sold more
easily here. The committee approx
ed Hhis action"
EOCH'S YANk WhlRl WIND