The New York herald., 1922-12-31
CONSPIRACY ALLEGED
Total Construction Cost
More Than Billion; Eighty
Million After Armistice.
MILLIONS FOR TRENDS
Indicted Men Connected With
Defense Council Include
William A. Starrett.

Special Dispatch to THE New YORK HmALD.
New York Herald bureau.
Washington. ID. c.. Dec. 80.
Benedict Crowell, formerly Assistant
Secretary of War, and six other men
OF prominence were indicted by a Fed
eral Grand Jury to-day on charges
OF conspiracy to defraud the Govern
\ ment in awarding wartime contracts
for camps and cantonments costing
more than 81 100, 100000. OF these con-
tracts $S0,O00.00O were let on and after
armistice day on the cost plus basis.
Mr.. Crowell, who has been engaged
in the construction business. is ac-
eused in the indictment of conspiring
with members OF the Emergency Con-
struction Committee of the Council Of
National Defense and others in the
letting OF contracts to friends and
associates, and to have profited di-
rectIy in the construction OF an ord
nance proving grounds at Camp Perry.
Ohio, by the Cleveland Construction
Company, the capital stock Of which
was then owned by the Crowell-Lun-
doff Little Company.
Indicted With Crowell.
Those indicted with Mr.. Croweii
were:
WILLIAM A.. STARRETT OF New
York city. ono of the best known COM
tractors In the country and for time
chairman or the Emergency Construc-
ticn Committee and later colonel In
the ~rmy.
MORTON c. FUTILE OF Boston. a
contractor. formerly member OF the
Emergency Construction Committee
CLEMENS w. LUNDOFF of Cleve-
land, a contractor. member of the
Crowell-Lundof-L Little Company and a
member of the Emergency Construc-
tion Committee.
CLAIR FOSTER Of Boston. con-
tractor. formerly a member of the
Emergency Construction Committee
and later a major In the army. as
signed TO the committee.
JOHN II. McGIBBONS of Chicago.
a. the time the Washington represent
ative of Baltimore bonding company
aud associated and acting with the
Emergency Construction Committee
JAMES A. MEARS of Boston. a con-
tractor. formerly secretary of the
Emergency Construction Committee.
Bench warrants were issued for the
arrest OF the men indicted. II is ex-
pected that they will be brought into
court next week and released on bond
pending trial of their cases.
Civil suits for &7s,OOO,OO0.
The criminal indictments are in addi-
Ia ri ffa a ed
against various contractors for the re-
cCvery OF approximately $4,000, 600. al
legged TO be overpay ayments and excessive
fees for the building OF camps and can
tonments during the war. altogether
fcrming an essential part OF the De-
Iartment OF Justices investigation Of
wartime contracts. The indictments are
the most sensational development OF the
investigation up to date. the cases hav.
ing been worked up by Roscoe c. Nc
Culaugh. special assistant TO the At
tcrney-Gencral, assisted by William L.
Caantland. assistant counsel. and Il. j.
Neascn. a special Industrial engineer.
The basis for the indictments Is the
charge that this group of contractors
assumed full authority In letting con-
tiacts for camps and cantonments.
ignoring the rule OF competitive bidding
and handing out contracts TO friends
and associates. providing excessive fees
The possible foes under the large con-
tracts. those for the great cantonments
we're t60ooo. The contracts we're ON the
cost plus basis. and according TO the
indictments. paved the way for exorbi
tant waste OF materials and wages out
CT all proportion to the service given.
Penalties ff Convicted.
Upward OF nry counts are made
against the ono time Assistant Secre-
tary OF War. and the six others In
dicted who. II convicted. are liable TO
maximum fines OF $4,000 each and not
more than two years in prison. The
counts are set forth IN the voluminous
Indictment as overt acts.
The attempt TO establish a conspiracy
starts out with the recitation that Mr..
futile. who prior 10. during. and since
the war, has been general manager OF
the Aberthaw Construction Company
advised the general munitions board Of
the Council OF National Defense that a
subcommittee be created 10 prepare n
form OF contract for use IN the emer-
cncy construction and obtained the ap-
pointment OF himself. Mr.. Lundoff and
Mr.. Starrett as members. Mr.. Foster
later was appointed in place OF Tuttle.
This developed into tho emergency con-
struction committee. The Indictment de-
cisres that the contractors arranged well
In advance 10 obtain control of the
letting OF The contracts
The committee attained Increased
powers and worked with John H. Nc
Gibbons and Mr.. Mears, wko aided in
Continued on Page Seventeen.