The New York herald., 1921-05-11


New York Herald Bureau.
Washington, ID. c., May 10.
Attorney-GeneralD Daugherty said to-
day that a thorough investigation is
under way by the Department of
Justice into the charges Of graft and
other Irregularities in connection with
War Department contracts for the sale
Of surplus army supplies.
He stated, following publication IN
THE NEW YORK HERALD this morning
of an account of the Governments
activities in this regard. that many
contracts were being examined. He
declined to go into details because, he
said, such publicity might interfere
with governmental action as well as
be unfair to persons involved in the
inquiry.
The Attorney General said informa-
tion had been submitted both to him
and to President Harding in some
cases. Asked about the United States
Harness Company. the Attorney Gen
eral said it had been taken up, but
he could not discuss 1t for the same
reason that prevailed In other cases.
Attention was calle1 to the harness
company contract because recon-
mendation already had been made by
the Department Of Justice for its can
collation..
Representative Graham CIll.). who
was chairman of the House Committee
on War Department Expenditures,
which brought charges of irregularities
in contracts for the purchase and sale
OF leather goods, canned salmon and
other supplies, said to-day:
"AIl the evidence in these cases. col
lected during last session by the Spe-
cial House Committee on War Depart
ment Expenditures. was placed Before
President Harding last week. The
President promised us the fullest coop
Grafton in the matter. and assured US
that prosecution would be the result IL
1t were determined by the Department
OF Justice that cause for action ex-
listed.
II have received information that
this investigation has been started by
the department and that the War De-
partnent is cooperating. l shall visit
the two departments tomorrow to- in
quire as to the status of the investiga-
tions. l feel sure vigorous actions will
be taken
Harness Company Explains.
Joseph c. Byron. formerly a Major in
the army and now treasurer of the
United States Harness Company, which
has aacontract with the War Depart
ment for the sale of army harness and
whose relations with the Government
are being inquired into by Attorney
General Daugherty as a result of the
charges brought by the Graham COM
mittee, to-day gave to THE New YORK
HERALD a statement which explains the
company's and the War Departments
side of the case. The Department of
Justice recommended a few days ago to
the War Department that this contract
be terminated, but Secretary of War
Weeks asked for further reasons why
this should be done.
Major Byron said the company was
proceeding to carry out the contract
without the slightest fear of Interrupt
tion," adding that the company knew
there was not the slightest legal or just
ground for cancelling 1t. Major Byron
declared that the War Department al
ready had completed an investigation OF
the subject and that the inspector gen
eral of the army had made a report in
which he said among other things:
"The proposal OF the United States
Harness Company was received when
all hope of disposing of the surplus
equipment was gone and the proposal
submitted was the only available and
feasible way by which to market the
property. The contract and its execu-
tion have been just and fair and the
Government will receive reasonable re-
turn on the equipment. No party to
the contract on either side has been
actuated by other than proper motives
and there has been an entire absence of
connivance or underhand methods on
the part of any one. either before the
contract was entered into or after It's
execution.
The attacks on this contract have
come from three sources:
Sources OF Attack Named.
/. Those interests in the leather
trade that desired. for purely selfish
purposes to have the Government
store all leather equipment until 1t
was rotton 30 that the surplus Gov
ment leather supplies would not be
put on the market In competition
with their business with the conse-
quent reduction IN cost to consumers
2 Discharged temporary officers
who desired to stay In the service and
who are actuated by a malicious
purpose to injure those whom they
hold responsible for their discharge.
3. A comparatively few persons
moved by what they believe to be
partisan political considerations.
Under the plan of the War Depart
ments contract with the harness com
peny the Government received the lions
share of the proceeds Of every set OF
harness sold and at the same time mill
tary harness Is converted into a useful
commercial article which Is placed IN
the hands OF the farmers at very reason
able prices. The result is that farm
everywhere are supporting
the present plan OF selling surplus war
harness.
'Trhe statement that the officers of the
harness company practically gave Gov
harness to themselves while
they were officers OF the War Depart
mcnt is without foundation in fact. No
Company had any connection with or
authority over the sale ef harness or
any other Government surplus property