The Prince George's enquirer and southern Maryland advertiser. (Upper Marlborough, Md.) 1882-1925, 1922-05-26
$500,000 FOR
WAR FRAUD CASES
House Committee Believes Gov
ernment Will Recover Many
Times That Amount.
PROMPT ACTION EXPECTED
Attorney General Says Best Lawyers
In Country viii Prosecute Claims
Expect to Uncover Many Mis-
takes and Errors.

Washington.-The amount the gov
ernment will recover from alleged war
fraud cases twill be many times the
amount granted to defray expenses in
cident to their prosecution the House
Appropriations Committee declared in
reporting a bill carrying $5O0,OO0 for
use by the Department of Justice as a
special Investigating and prosecuting
fund.-
Explaining the need Of money and
men assistance, Attorney General
Daugherty told the committee, as re-
vealed by printed hearings made pub
lie that about 275 such cases, ranging
from several thousand dollars to sew
eral million dollars, were pending, and
that the total amount involved ag-
gregated $192,OOO,O0O.
Urging speedy passage Of the bill, SO
that the Department of Justice might
be adequately equipped "for success
full disposition of the case," the COM
mittee declared those who had de-
frauded the government during the
war should be prosecuted to the limit
with all the vigor the government
could command.
The committee reported that the
character of the cases was such that
the expense of handling them rs
greater than that of any class Of work
the department has to deal with, ex-
cent. perhaps, antitrust prOsecu-
tions," and that some of the ablest
lawyers in the country had been en-
gagged as counsel by those against
whom the government was contem-
plating civil and criminal action.
The number of cases mentioned by
the Attorney General, the report add
ed, will increase from time to time las
the War Department progresses with
the work of going over the $4,000
cases which are yet to be gone over
by that Department"
Daugherty said in his testimony 1t
was his intention to engage the best
lawyers obtainable for investigation
and prosecution of alleged fraud
cases.
81 should say that If the work costs
S5OO.OOO," said the Attorney General,
1--WE ought to get through on S2oO,OOO
or $500, 900 on attorney fees, with their
expenses added to that, and SlOO,oOU
or S15O,O0O or account Of experts and
accountants. because these three activ-
ties will comprise the principal part
of the work. 1 expect to return to the
than
appropriation"
Under the bill, as amended by the
committee, the Attorney General,
would be authorized to employ one
lawyer without limitation as to salary
but all other salaries Of lawyers, ex-
merits or accountants would be limited
to $4,000 year.
Rechecking of accounts, Daugherty
said, will disclose many mistakes, and
he predicted that many of the persons
who did business with the government
will be coming in now"
81 think you will agree with me that
the work should be cleaned up" he
added. sit is due the people OF the
country that they should know the
real story Of these transactions. The
government, 1 think, will realize very
material profit on this investment. We
have gotten to the point where we are
up against it for money and rien."
The Acknowledgement declared he
was mot begging for this money" ad-
ding:
1T is as much your responsibility
as mine. 1 am just giving you my
recommendation after some experience
in the matter for a year, and after
consultation with those under Inc who
are doing this work"
Representative Byrns, Democrat.
Tennessee, asked Daugherty if he
could say how many war fraud cases
were on hand in the department July
1, 1921.
81 do not know" he replied. You
see war fraud cases is hardly u fair
way to put it. There will be honest
disputes in regard to the cases which
I do not consider fraud cases."