The New York herald., 1921-08-06
S3OO,O00,O0O Seized Proper
ty of Germans Offers Big
Field of Operation.
TOTAL is OVER A BILLION
Tdm0nds Has Bill to Make Law
More Binding With $10,-
900 Penalty.
Special Despatch to THE New YORK HERALD.


Washington, ID. c., Aug. D..
THE NEW York HERALD learned to-
day that scores Of former Government
officials of the last Administration. one
time Cabinet officers, bureau chiefs,
law officers and minor employees. who
have opened law offices in Washington
during the last few months, are barred
from prosecuting hundreds of claims
now pending against the Government
and amounting. according to an esti-
mate of Attorney General Daugherty,
to more than billion dollars.
This Is one of the most lucrative
forms of law practice in Washington,
cially well fitted for it because of their
experience with governmental red tape.
After a careful study by the Depart
ment of Justice it has been decided to
enforce an old law, enacted in 1873,
and still in effect.
At the same time Administration
leaders have taken steps to put bill
through Congress to make this law more
effective. Attorney General Daugherty
is scheduled to appear before the House
Judiciary Committee Wednesday to urge
the prompt passage OF bin for this
Edmonds Pa.).,
Under the existing statute it Is unlaw-
ful for former Government official or
employee to prosecute a claim. or aid
In doing SO, against a Government de-
partment If the claim was pending dur
ing the tenure in office for a period of
two years after he leaves the Govern
ment's employ. 1t does not make any
difference whether the claim is before
the particular department with which he
was connected or some other depart
ment.
The proposed new law would extend
the prohibition to any Government
agency, there being some doubt al to
whether under the old statute a COM
mission like the Interstate Commerce
Commission, Is embraced by the term
department" 1t also would increase
the time limit to three years and pro-
vide fine of $4,000 or two years i'm
prisonment or both. There Is no pen
atty In the existing law.
Like Omceholders' Roster.
The list of new lawyers in Washing
ton reads very much like a roster of
the last Administration. These lawyers
are engaged in general practice and, of
course. there is plenty of general prac-
tice In Washington.
Among these lawyers are the firm of
Wilson & Colby. composed of former
President Woodrow Wilson and his last
Secretary of State. Bainbridge Colby:
Robert Lansing. one-time Secretary of
State: A. Mitchell Palmer former Alien
Property Custodian and Attorney-Gen-
eral: Joseph p. Tumulty. formerly Sec
retary to President Wilson: Edgar L.
Clark. until recently chairman of the
Interstate Commerce Commission Rob-
crt w. Woolley. former member of the
Interstate Commerce Commission Rob-
ert Scott, former secretary to Attorney
General Palmer Daniel C. Roper and
William Williams, both former Com
missioners of Internal Revenue, and w.
r. Lamar, former Solicitor of the Post
Office Department.
1t is not intended to convey the i'm
preston that any of these men have
been engaging in the prosecution OF
claims such as come within the mean
ing of the law. This Is merely a list
of former officials who have engaged in
the practice of law here within the last
few months. Some of them probably
NOulu HOl De udTTeu Dy Ine terms or
the law of 1873 from prosecuting claims
Officials who left the Government
more than two years ago are of course
not now affected by the law and many
OF these are understood to be accepting
retainers for prosecuting claims.
me trouble with section 1870 Is that
there is no penalty attached and no
way to enforce it," said Representative
Edmonds to-day. 1T merely leaves to
the judgment OF the department heads
whether to apply IL or not Moreover
only 'departments' are mentioned in tho
old law and some people are construinr,
1t literally and claiming that such in
stitutions as the Shipping Board. the
Alien PROPERTY Custodian's office and
other commissions and so forth are
not covered by Its provisions
Because of this position which | con-
slider quibbling. l have drawn an amend
ment which / think will cover every
thing. The Attorney General is to
appear in support Of it and / think it
will be passed promptly"
shuts Out PnImer's Old Aids.
Attorney-G General Daughertys orders
have brought about an explicit under
standing by present officials that former
officials under the Palmer regime who
are now in private practice are not TO be
allowed to appear for clients In any
legal matters involving the disposal or
recovery OF property now held by the
Alien Property Custodian.
Although the Attorney-Genera Is alb
sent from Washington, leaders at the
Capitol who heard OF the orders, which
we're given verbally TO a score Of
higher officials of the Department OF
Justice, interpreted them as significant
of the entire Administrations purpose TO
Danish practitioners of all classes who
may seek to capitalize their former Of
ficial positions with the Government.
IL has been estimated by Attorney
General Daugherty that $500, 900, 900 is
tied up with the Alien Property Gus
todian In property and funds seized nj
the outbreak OF the war and afterward.
Great pressure IL being exerted to pro-
cure the restoration Of this property.
Large numbers of valuable German
owned plants are Involved in claims
for large sums
FROM what could be learned from
authoritative sources tonight Il was
evident that the hardest blow from Mr.
Daugherty's action would strike directly
a number of former high officials of the
Department said to be now In the en-
ploy of wealthy clients whose fortunes
may be affected by decision of cases
nt,f 80 ~