The Washington times., 1922-09-26
j. 8. W|LLF|LE
ANOTHER SUIT
ON WAR FRAUDS
Government Also Plans to Set
Aside Sale Of Bosch Mag
neto Company.
BY Universal Service.

Suit in equity by the Government
to set aside the sale of the Bosch
Magnetic Company and return 1t to
the alien property custodian will be
filed in United States District Court
for the district Of Massachusetts, at
Springfield about the middle OF next
month, it was learned officially to-
day.
Alien Property Custodian Miller
yesterday was in conference with
Department of Justice officials for
more than an hour on this subject,
and a definite decision was reached
for the department to bring the suit
as early as the necessary papers
could be completed. Much work Al
ready has been done in their prepara'
ton. 1t was stated the suit would
be ready to file before the third week
in October.
To File More Suits.
Attorney General Daugherty, who
returned from Chicago. where he
represented the Government last
week in the rail strike injunction
hearing, stated today that he had
Just given instructions for the filing
OF "another war frauds suit" he
declined TO state what the suit would
be, but 1t was learned the Bosch suit
had been ordered.
The allegations in this suit, 1t Is
stated, will be far more serious than
those in the recently filed Chemical
Foundation recovery suit at vii.
mington, Del. The whole record OF
Martin e. Kern, principal purchaser
of the Bosch property, will be gone
into, involving the alleged citizen
ship fraud whereby Kern, an uE-
naturalized enemy alien, posed as an
American citizen. Allegations ot
conspiracy to deliver the Bosch prop
erty TO Kern at a small fractional
part of its real value. through maGi-
pulation of the sale to keep out other
bidders. ii is said, will be made.
The Bosch property, which Kern
bid in for s4l50.0O0, is alleged to
have been worth approximately
$4,000 900 at the time OF the sale
by the alien property custodian IN
January, 1919. Kern Is alleged TO
have retained for himself out OF the
assets approximately $5,OOO,OOo De-
fore transferring the property TO
the American Bosch Magnetic Com
pany, which he organized to take
IL over from himself and in which
he retained a big block OF stock.
simultaneously with the prepara-
tions for this civil suit for recovery
the Government is preparing 10 be.
gin a grand jury investigation OF
the Bosch transactions as soon as
a new war frauds grand jury Is
impaneled here next week. Inc
present term of the District Su-
preme Court ends next Saturday
and the tenure Of the existing reg
ular and special grand Juries auto.
matically expires then. New grand
iurics will be drawn when the DC.
tober term OF court opens next
Monday.
will Answer Suit.
Coincident with the taking up Of
the Bosch probe, grand jury inves'
tigation into the sale of patents to
the Chemical Foundation also will
be undertaken. The war frauds
section of the Department of Jus.
tice has these cases ready for pre-.
sentatiOn.
Next Thursday is the date set for
the defendants to file their answer
to the Governments Chemical
Foundation civil suit at Whining
ton for the recovery of patent hold
ings secured from the alien prop
erty custodian. The Foundation,
il is stated. will ask for thirty
day continuance. This continuance,
it is stated, will not delay the
ultimate trial of the suit as the
District Court docket at Whining
ton is congested with cases that
would prevent hearing anyway
before December.