The Washington herald., 1922-06-23
WOODRUFF INDICTS
DIRECTOR OF ALIEN
PROPERTY OFFICE
Demands House Probe, in
Resolution Enumerating
Alleged Irregularities.
MILLER RE PILE S
Representative Says Sales
Here Made to Favorites
At Low Prices.

In line with his prolonged attack
upon the Department of Justice, Rep
resentative Woodruff, Republican,
Michigan, has now aimed an investi-
eating resolution at Col. Thomas w.
Miller, Alien Property Custodian.
Four counts were contained in
Woodruffs indictment of Miller in a
speech before the House late yester-
day. And Col. Miller has immediate
ly answered the charges point for
point Woodruff declared:
l. That in the handling of seized
properties prodigious fees had been
paid by the custodian to lawyers some
of whom were representing the Alien
Property Custodian and alien enemies
at the same time and that these law
yers had been able to secure the re-
turn OF property to alien owners while
American citizens whose properties
were seized were compelled TO wait.
Questions Magnetic Sale.
2. That the sale of the Bosch Mag
neto Company to Martin Kern, an al
legged alien, was questionable.
3. That certain amendments not
finally Incorporated in the peace res
olutions were omitted through :'un-
due Influence"
4. That Miller's administration OF
the office was inefticiently conducted
as a result of which properties OF
enormous value have been sold to IA
vorite purchasers at prices far below
thei reasonable value and in some in
stances to Ineligible purchasers.
A committee of nine Representatives
would be appointed to investigate
the office under the Woodruff resolu-
ton. with an eye to the fact that AT
torney General Daugherty apparently
gave his sanction to negligence of the
custodian in taking up war frauds"
Miller, Answers Charges
Milier's reply to Woodruff's charges
answered these general charges as
follows:
J. NO properties have been sold by
the present Alien Property CustO-
dian with the exception of small
pieces of real estate, and only then
when the income from the proper
ty was not sufficient to pay taxes
and improvements required by mu-
nicipal authorities, and the assent
of the late enemies has been OBJ
tained in every instance where it
was possible. No lawyers are en-
pIoyed by this administration rep.
resenting the custodian and aliens
at the same time. Approximately
$4,000 has been paid in lawyers
fees since March 4, 1921, as com
pared with s2,0O0,000 paid under the
previous administration.
2. The only records in the Bosch
magnetic case are those that were
handed to this office by my prede-
cessor. These official records show
80 oil -
E. Kern, who, according to these
records, was purchasing this prop
erty for himself and certain other
participants. The fact that this or
flee as a part OF the official rec
ords of the Bosch Magnetic Com
pany, listed the names of these par
ticipants, does not mean that we
are endeavoring to protect any
one.
Would Correct Mistakes.
8. THE amendments in which this
office was interested, when the
peace resolution was pending last
June, were those that would con-
tinue the authority of the Alien
Property Custodian in following up
demands for property not then re-
duced to possession, but were in the
same category as property surren-
dered under previous term. II such
an amendment had not been inser-
ted, those who had obeyed the pro-
visions of the alien property act would
have been penalized. while those
who disobeyed would have been i'm
mune. The inference drawn with
regard to the other amendments.
which were not finally incorporated
in the peace resolution. Is untrue.
4. IF any mistakes have been
made by this office under the pres
ent incumbent, we will be only too
glad to correct such errors, should
they come to our attention by pub
lie notice or as a result Of our own
lnVestigation. 1t was stated that
this office has not taken action to
reopen and prosecute certain alleged
transactions carried on by this Of
flee under the previous adminfstra-
tion. The office is not equipped
either with appropriation of money
by Congress, or in personnel, to
turn itself into district attorneys
or prosecuting attorneys office"