The New York herald., 1921-06-16
WEEKS hints GRAFT,
VO|DS HARNESS JOB
% to 100 Million Contract
Cancelled in Drive at Sur
plus Goods Sales.
TO PROSECUTE GUILTY
Former Army Officers Ac-
cused of Banding Together
to Make Big Sum.
PALMER IGNORED FACTS
Daugherty Followed Up Lead,
With Full Backing of
Harding.
PALMER IGNORED FACTS
Special Despatch 10 THE NEW yolk HERALD.
New York Herald Bureau. !
Washington. n. c.. June Is, (

Secretary of War Weeks announced
to-day the cancellation of tie Govern
ment's contract with the United States
Harness Company for the sale of mil
lions of dollars worth of surplus army
harness and other leather goods. He
acted on the advice of Attorney Cen
eral Daugherty.
This is the first important step in
carrying out the policy of the Harding
Administration TO root out graft in the
sale of all surplus army supplies and
to prosecute those guilty Of conspirine
to defraud the Government wherever
the evidence indicates criminality or
the possibility of recovery through
civil suits.
The details of the harness graft were
published by THE NEW YORK HERALD
last autumn This case was In
vestigated by the Graham committee of
the House last Congress, and former
Attorney General Palmer was asked to
take action, but both he and former
Secretary of War Baker failed to do so.
A few weeks ago THE New YosK
HERALD announced exclusively that evil
dence in this and other cases involving
alleged graft in the disposal of surplus
army supplies had been turned over to
Attorney-Generaf Daugherty by Presi-
dent Harding with instructions to go to
the bottom of the matter and bring
court actions II the evidence justified It,
What the next step in the harness
case Is to be has not been divulged by
the Department Of Justice, but in vie "
OF Secretary Weeks's statement to-day
it seems likely that the Attorney Gen.
eral will soon take the case to the courts.
Contracts Approved by Baker.
These contracts" said Secretary
Weeks, were entered into by the forms,
director of sales with the approval of
Secretary Baker and provided that the
large accumulation OF stock Of surplus
military harness and accessories was
TO be turned over to the United States
Harness Company to be reconditioned
and sold or sold in it's original condi-
ton upon profit sharing basis.
THE facts developed by the Attorney
General led him TO the conclusion that
these contracts had been entered into
as a result of conspiracy on the part
OF certain former army officers to secure
these contracts and the control of large
stocks of harness on hand for their own
benefit.
''The War department naturally has
followed the advice OF the law officer of
the Government in this matter"
The United States Harness Company
some time ago employed one of the most
prominent attorneys in Washington. who
has been comforting with Department of
Justice officials concerning the case. in
an endcavor to show why the contract
should not be cancelled and to prevent
indictments. Joseph c. Byron of Hagers-
town. Md. who was a Major in the army
during the war and later associated with
the War Department In civilian capac-
ity. is one OF the chief organizers of the
company which entered into the contract
for the sale of the leather goods. He is
at present the company's treasurer. Sew
eral other former officers are involved
In the case.
The value OF the leather goods in the
contract has been variously estimated at
from s25.0oo.ooo to 500. .000.0 900. The
truth Is that the exact value is not
known. but the lower figure is probably
very conservative.
Findings of Investigators.
The following significant statement
was made By the Graham committee in
its findings In the harness case
No real effective efforts were made
by the surplus property division of
the War Department or by the Direc-
tor of Sales to sell and dispose Of the
surplus leather goods to the consum-
ing public.
The practice OF permitting for
mer military officers of the United
States upon getting out OF the
service to buy surplus supplies which
they have had to deal with while I'm
the service Is vicious and apt to lead
20 great abuses.
Other subjects investigated by the
Graham committee all OF whose evil
dence has now been turned over 10 the
Department of Justice and In in the
hands OF a special division created by
Attorney-Generai Daugherty TO handle
army sales. include;
L. Sales to the War Department OF
enormous quantities OF rotten canned
salmon and the resale OF much OF this
same salmon TO the packers under
conditions suggesting fraud and in
volving great loss to the Government
and profit to the Gamers.
2. Charges that canned meats.
canned vegetables and other surplus
food supplies were deliberately held
of the market by the War Depart
mont during the last Administration
to keep up prices and protect the
packers and Gamers.
,. Allegations of conspiracy and
fraud In connection with the con-
tracts for the construction OF army
camps and cantonments during the
war.
TIaarsnt salmon Case.
The salmon case is regarded M one
of the most flagrant and Is expected 10
be the second one on which the Depart
ment OF Justice will take action. The
evidence IN the possession OF the Cow
srnmcnt law offices indicates that nearly
$40 .oo0,o 900 worth OF canned salmon was
sold TO the Government during the war
and that when large part of II was
found 10 be rotten by the Bureau Of
Chemistry the War Department, instead
OF throwing it back on the Gamers, re-
cold II to them on basis that enabled
them TO make profit on the whole
transaction.
The Graham committee IN caustic