New-York tribune., 1921-06-16
Ex-Ar1rny Men
L ace Arrest i'm
Harness Case
Daugherty Decides Criminal
Law Was Violated i'm Com
tract for the Disposal of
10 Millions War Surplus
Deal Approved by Baker
Weeks Turns the Situation
Over to Department of
Justice for Proper Action

WASHINGTON, June 15.-Criminal
proceedings against number of for
mer army officers may follow the action
of President Harding in canceling War
Department contracts with the United
States Harness Company, of Ransom,
w. Va, for the disposal Of surplus har-
ress, it was said tonight at the De-
partment of Justice.
Attorney General Daugherty, it was
said, was considering the governments
course of action and was expected to
announce his decision soon.
Cancellation Of the contracts bv the
President was announced by Secretary
Weeks, who explained that they were
entered into by former director of
sales Of the War Department with the
approval Of Secretary Baker, and pro-
vided that the large accumulation of
surplus military harness should be
turned over to the company for dis
posal.
Daugherty Advised Action
The President, in cancelling the con-
tracts, he said, acted upon the advice
and recommendation of Mr.. Daugherty
who reported after investigation that
the contracts had been entered into in
violation Of criminal statutes prohibit
ing officers or employees Of the govern
ment from having an interest in gov
ernment property or contracts.
In a memorandum made public to-
day Secretary Weeks said in part:
These contracts were entered into
by the former director oc sales with
the approval of Secretary Baker, and
provided that the large accumulation
Of stocks of surplus military harness
and accessories were to be turned over
to the United States Harness Company
to be reconditioned and sold, or sold in
its original condition upon a 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 temporary officers of
the army to secure these contracts and
the control of large stocks of harness
on hand for their own benefit.
The War Department has naturally
followed the advice Of the law officer
of the government in this matter"
Case Left to Justice Bureau
Secretary Weeks said the case now
was in the hands of the Departm ent
! of Justice for such action as deemed
proper. He believed, he said, it would
be made part of the general inves-
tlgation of war contracts ordered by
Mr.. Daugherty. The only other war
contract case transmitted to the De-
parment of Justice, Mr.. Weeks added,
was that known as the Salmon case"
pany was to handle, an official declared,
had been variously estimated, but
probably was in the neighborhood of
$9,000,000 or $10,000,O00. Officers of the
sales division of the War Department
declined to discuss the case or to in
dicate what transactions actually had
taken place under the contracts.
| Investigation of the harness contract
was begun by Congress and then was
reviewed few weeks ago jointly by
the Department of Justice and the War
Department before Mr.. Daugh erty's
recomm endations were submitted to
President Hadring.
Criminal Action Recommended
"The salmon case" referred to by
Secretary Weeks, was Investigated by
House committee, which recon-
mended that the Department of JUS
tice institute criminal proceedings
against dealers who in 1918 sold the
War Department 100000 cans of
salmon held by government experts
to be unfit for human consumption.
The minority report of the COM
mittee commended the War Depart
ment for an inspection service which
kept the food from the soldiers for
the procurement of $8,000000 by re-
sale to the dealers and for preventing