The Mena weekly star., 1921-02-10
FIND ANOTHER BIG
 WAR SUPPLY GRAB
Ex Officers Favored in Leather Deals" Involving 20 Million Del lars, Probe Reveals--PrOse-
 cution Is Demanded.

Washingtoa, Feb. 7.-Surplus war materials valued at more thar 6 bil- lion dollars are packed in every army warehouge and depot in he country. Little of this is reaching the public after more than two years of peace.
 This information was made public tonight by the house committee on expenditures in the war department in connection with it's report on the investigation of leather goods pur- chased by the government in the war
 The committees investigation has revealed according to it's report, that two former army officers, stationed in Washington have obtained control of the disposition of surplus leather goods amounting to more than 20 million dollars, on which they are realizing a profit of 40 per cent. The report has been sent to the Depart ment of Justice with the recommen- dation flor such action as that de- partment may deem proper under the circumstances"
 Dealers Controlled the Prices.
 The conclusion set forth in the com mittee's report follow:
 "The purchase of leather and leath CT equipment and the fixing of prices therefore during war was controlled largely by the leather tanners and pro- ducers and their representatives"
 Their attitude" the report says in part, twas grasping and unfair to the country, and if congress is able to as- certain for the first time the sordid retails of these transactions, they re- fleet no credit upon the country
 "The amounts of leather and leath- CT equipment purchased were excess i've and far beyond the reasonable needs of the government" continues the report.
 Prices Exorbitant and Unnecessary. {"
 sThe prices paid for such supplies were exorbitant and unnecessary. "The shortage of leather and high prices paid by the consumers in 1918 and 1919 were caused largely by the large purchases of leather and high prices paid by the war department.
 "No real effestive efforts were made by the surplus property division of the war department or by the director Of sales to sell and dispose of the sur plus leather goods to the consuming public.
 "The practice of permitting former military officers of the United States, upon going out of the service, to buy surplus supplies which they have had to deal with while in the service is vicious and is apt to lead to great abuses"
 na.randS C,~oI,,. p. n..x s Aa-n.ss The committee calls upon the war department to make a declaration of all surplus materials to place them on the market.
 The two former army officers men toned in the report are Col. George R. Goetz and Maj. Joseph c. Byron. They organized the United States Harness Company with F million dol lar stock, and September or 3, last, obtained an option in violation of war department rules, on practically all surplus leather goods, says the report.
 ''The contract made with the com pany obviously is unfair to the gov ernment," the report states. Tt cov- CTS all harness, saddles, leather spare parts for harness and saddles, hard ware and accessories for harness and saddles, and cut leather stock on hand September "A, 1920, or declared sur plus wihtin one year thereafter Vari- ous estimates of the cost value of goods covered by the contract have been made. the last being in the neigh borhood of 20 million dollars.
 A Commission" of 1 Million.
 If the property covered by the con tract is sold for more than the mini mum prices fixed in the contract, the contractors shall receive IS to 40 per cent of the selling price for selling. On the harenss alone, the 40 per cent will amount to approximately 1 mil lion dollars.
 "It is admitted by both Goetz and Byron that what the United States Harness Company is now doing, the war department could have done equally well, without the payment of the 40 per cent commission. The probabilities are that the goyefnment will not receive to exceed 15 per cent of the cost value of it's surplus leather goods"
 Continuing, the report declares this investigation has disclosed another situation.
 Surplus Worth Billion Dollars.
 HOW much surplus war material now under control of the war depart ment, probably no one knows. As be- fore stated, General fBullard estimates it at billion dollars in value. By the plans of the general staff, the military authorities now are retaining in storehouses and elsewhere enough supplies for an army of 1 million men with reserve supplies for six months. Every storehouse and depot in the country is packed to the roof with military supplies, little of which reaching the public after more than two years of peace" the report con cludes.
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