Omaha daily bee., 1922-05-26
.ReaVist to
War Frauds
Nebraska Representative Will
Resign Seat in Congress
to Aid Attorney Gen.
cral Dsughcrty.
Salary $4,000 a Year

Washington. May 2s.-Wnh the
bombardment OF Attorney Dsugher-
~ continuing in congress today with
unabated intensity. the attorney gen
eral issued an announcement OF his
decision to take personal charge OF
,he prosecution oi war fraud eases
instead OF employing a special as
sistant attorney general to direct this
work.
The attorney general further an!
nouneed that Representative Frank
Reavis. Nebraska. who is M, can
d;date for reelection, would resign
his seat in congress, to asGis, him
in the prosecution OF these cases. He
also announced the appointment, OF
Col. Henry w. Anderson. = Rich.
mond (Va) lawyer. as second special
assistant. These two will cooperate
with former Representative Roscoe
McCulloch (Ohio). and assistant At
iorney General Guy d. Colt. under
personal direction Of MIR. Daugherty
in the war fraud prosecutions, pres
cntation Of cases to begin before a
special grand Jury in Washington
next week
Salaries will be $4,000 a year
each.
Four -cornered Attack.
Today's attack on the attorney
general was a four -cornered one. OF
which the outstanding features were:
Charges by Senator Watson,
Georgia. democrat, that Mr.. Daugh.
erty, through Thomas F. Fielder,
permitted the smuggling OF liquor
into the United States on a large
scale and ordered the release OF per-
sons and cargoes seized by dry"
enforcement officers.
Assertion by Samuel Untcrmyer
OF New York. in a letter to Senator
La Toilette. Wisconsin, that ]. P.
Morgan & Co. have such influence
with the Department OF Justice that
they have been able to block all
prosecution OF the General Electric
company for violation OF the anti
trust law. ...t
Complete blockade of the house
recess program by Representative
Woodruff. Michigan, in an effort to
force action OH the resolution pro-
viding for a sweeping investigation
of Mr.. Daugherty's alleged failure to
proceed with the prosecution OF the
war fraud cases.
Impeachment Hinted.
Intimation by Senator La Fol-
lette that impeachment proceedings
against Mr.. Daugherty will be in or
der if he fails to take steps to pre-
vent the prospective merger Of
various big steel corporations.
Senator Watson led off the at
tack by bringing up again the part
played by Daugherty and Fielder in
securing the release OF Charles w.
Morse from the Atlanta penitentiary
during the Taft administration. The
whole thing, Senator Watson said,
referring to the Morse case, was "a
fake. sham, makeup, a pretense. =
Mr.. Untermyer, as counsel for the
Lockwood investigation committee in
New York. wrote Senator La Fol-
lette that he wished to have placed
promptly before congress, certain
facts relating to the General Electric
company. He declared that the Cen
eral Electric company had virtual
monopoly on electric light bulbs and
that their profits were about 100 per
cent. He had made repeated but un.
successful attempts to induce the at
torney general to order proceedings
against the company for violation of
the antitrust law. he said.
ITO be brutally frank about the
business" said Mr.. Untermyer, Il
am satisfied that the overshadowing
power of ]. P. Morgan & Co.. who
are the financial managers of this
company and who really control its
destiny and one. of whose members
is director In the company, will
make it impossible ever to secure any
sort Of effective relief through the
4 Department OF Justice"
! Raps Daughterty.
Senator La Toilette took occasion
to rap the attorney general for his
apparent reluctance to take steps to
block the big steel merger.
| Asked if he meant to imply i'm
peachment proceedings, Senator La
Toilette said:
| I"You can draw any inference you
please"
| Representative Mondell, Wyoming,
republican leader in the house, arose
: and asked unanimous consent for a
recess extending over three days
next week. Many members wanted
to 60 home over Decoration day, he
explained
what about the socailed John
Woodruff resolution" inquired
Representative Woodrpff, referring to
the resolution for investigation of the
attorney generals failure to prose-
cute war frauds. Has the gentleman
any information on that subject"
Il have no information, replied
Representative Mondell
"Then | object to the recess" said
| Woodruff. One objection being suf-
ficient, the recess program had to
he abandoned.