The New York herald., 1922-04-14
CHARGES INFLUENCE
LED DAUGHERTY TO
KILLAIRCRAFTS SUITS
Withdrew Cases of Graft i'll
War Contracts, Former
Aid Says.
NEWBERRY is NAMED
Senator Halted Prosecution
of Lincoln Motors,
Scaife Asserts.
lie ALSO NAMES WEEKS
Pleaded in Behalf of Wright
Martin Co., Public State
ment Says.
lie ALSO NAMES WEEKS

Special Dispatch 10 THE NEW NoRa HERALD.
New York Herald Bureau,
Washington. ID. g.. Aprii III.
Attorney General Daughcrty to-day
was brought to task for alleged failure
to prosecute those responsible for air
craft scandals. III. l.. Scaife, at on
time special assistant in the Depart
ment OF Justice. issued a statemc IL
which he said he resigned that
ton because proper action was
taken to follow up aircraft cases as
they were developed. Mr.. Scaifc said
Mr.. Daugherty had before him on
March is a report he had prepared on
aircraft scandals. which was read into
the Congressional Record by Repre-
sentative Woodruff of Michigan on
April IL. Mr.. Scaife said he then
warned the Attorney General that un-
less action was taken he would make
mako public the facts in the report.
Mr. Scaifc in his statement said:
ION October 4. 1921 was appointed
In the Department of Justice to conduct
an investigation of the aircraft con-
tracts Audits showed that certain con-
tractors had been overpaid in enormous
amounts. Among the cases were those
OF the Wright Martin Aircraft Corpora
ton in which the Government account
ants reported overpayments to the
amount of s6.267,476. 70. and the LIN
coin Motor Company. in which case the
audit stated overpayments to be ss,lss.-
I ra Al
standard Aircraft Corporation and the
standard Aero Company. IN which the
contract audit section, Of the War De-
partment reported payments In the
amount Of s9,9iS.02S42. without sup
porting vouchers and that in case sup
porting papers could be produced there
would still remain dut TO tho Govern
ment se,5s6.774.61.
"In all OF the aircraft cases developed
only two have been placed In the hands
of United States attorneys for action
the Wright Martin Aircraft Corporation
and the Lincoln Motor Company. After
these cases had been regularly placed
in the hands OF United states attorneys
with instructions to proceed both were
withdrawn from their hands because OF
influence exerted by persons outside OF
the Department of Justice. The domu-
ments presented TO Coneress by Mr..
Woodruff will show that tho case Of the
Wright Martin Aircraft Corporation
was withdrawn from the hands of the
United State Attorney In New York at
the instance OF Mr.. Charles Hayden,
director of the corporation, through the
influence and assistance of the Secretary
OF War.
"When the audit OF the Lincoln Motor
Company developed it's disclosures. the
papers were placed in the hands OF
Assistant Attorney General Grim. who
after a conference with Col Goff. AS
sstant to the Attorney General immedi-
ately wired to the u. :. Attorney IN
Detroit placing the case In his hands.
| am reliably informed that the next
person to appear on the scene was
Senator Truman ". Newbcrry. who
telcphoned to Mr.. Grim requesting him
TO withdraw the case from the hands
of the u. $. Attorney in Detroit and
return IL TO the Departm, MT of Justice
Newberry Got Action.
Ny information is that when AIR
Grim positively refused to be n party
TO any such procedure. Senator New
berry took tho matter up with the
Attorney General and his purposesswerc
accomplished. | also understand that
senator Townsend invaded the precincts
of the Department OF Justice In the
matter and that his telegram In this
behalf is matter of record.
II have no personal fight to make
on tho Attorney Gcterai or any one
else. but think the time has come
when the government should no longer
be made the victim OF pcrfunctory In
vestigations and my fight II not against
any person. but 1t Is fight for civic
Righteousness and lean government.
The trouble with these Investigations
is that they are stopped. and everybody
knows II. or they ought 70 lnow Il. In
these Investigations there Is n blast OF
the trumpet and the chase is announced.
Small animals have very hard time.
but when the real quarry Is jumped the
Attorney General becomes weary The
strength of his arm decays and his feet
fail him In the chase. FINALLY the chase
is ended. and when we return from the
hunt the harcs are chasing the hounds"
Mr.. Daugherty last night said he had
Continued on Page Six.