The New York herald., 1921-02-23

New York Herald Bureau
Washington, ID. G., Feb. 2e.
Official reports Of the Military INTEL
iigence Division of the Army present
ing evidence tending to show that two
special investigators Of the House
committee investigating War Depart
ment expenditures attempted to carry
out an alleged blackmail scheme were
presented to the House to-day by the
Military Affairs Committee.
The evidence includes a letter which
j. NJ. Hill, one Of the men involved,
wrote to c. c. Lindsay, the other in
vestigator, stating that he had made
arrangements to sell certain inforn,a-
ton regarding the settlement OF a
war contract Of the Valley Forging
Company of Verona, Pa to New
York newspaper for $4,000, but that
some people in Pittsburg'' might be
willing to pay more to suppress it..
The letter was written October H.
1919, from Room sO2, 25S Broadway
supposedly the office Of Hill.
Had a Letter From Ansen.
The information presented to the
House includes report from Major Gen.
Marlborough Churchill, Chief Of Mill
tary Intelligence. revealing that the two
investigators went to the War Depart
ment with letter from Samuel T.
Ansell. counsel of the investigating COM
mittee at that time, and asked for the
Information. 1t was refused because the
military intelligence agents already had
obtained the Hill letter. The plans OF
the two investigators were unknown to
the House committee. Is is revealed by
the fact that Chairman Graham (1ll.)
suspended the two men as soon as he
was informed Of their plans. Repre-
sentative Graham also has refused to
pay Hill and Lindsay for their services.
The two Investigators formerly were
employed by the War Department in
the settlement OF some war contracts,
the reports reveal. In a letter TO Mr..
Graham regarding the two men Sec
retary OF War Baker said:
'The investigators TO whom I refer
are J. NJ. Hill and c. C. Lindsay, both
of whom were at one time intimately
connected with an investigation Of the
claims of the Valley Forging Company,
concerning the settlepent of contracts
for 75-millimeter shells. Both of these
persons are known TO have an interest
in this investigation not wholly inspired
by desire to safeguard the public in
terest"
Suggestion for Suppression.
Hills letter to Lind say follows:
Room SO2. 25S BROADWAY.
Oct. II, 1919.
"Hg Dear Lindsey:
LAS the people in Washington are ap-
parently not going to move in the Pitts
burg matter, 7 have arranged to sell
the story to a New York paper. It
makes corking story and is to be
played up as a sensation. haven't
it ready before the middle OF the week
When II appears I will send you copies.
'Tt has occurred 20 me that IL this
paper thinks IL is worth $4,000 TO pub
lish. II might be worth more than that
TO some Pittsburg people to suppress ii.
OF course, any negotiations would
have to be carried on very carefully, as
you wouldn't want to lay yourself open
to any charge. However. IL you care to
split anything over the $4,000 that you
can get ] think IL ought TO be worth
Ave to certain people not to have Il
appear.
"In case you can do anything. please
wire me at the above address, as II will
be too late after have handed the story
over.
with best regards to Mrs. l.. and to
yourself. Sincerely yours,
81. NJ HILL"