The New York herald., 1922-04-12
ASSALS DAUCHERTY
/ ON WAR CONTRACTS.
Woodruff of Michigan Calls
on Him to Sue for
Millions.
DEMAND in THE HOUSE
Threatens to Move for I'M
parchment if Attorney
General Fails to Act.
PALMER ALSO ATTACKED
War and Navy Departments
Are Included in Charge of
Invisible Finance
PALMER ALSO ATTACKED
Special Dispatch 10 THE New YORK HERALD.
New York Herald Bureau.
Washington. ID. g.. Anril Ill. N

Special Dispatch 10 THE NEW YORK HERALD.
New York Herald Bureau.
E Washington, ID. G.. April IL.
Representative Roy Orchard Wood
ruff (Rep., Mich) introduced in the
House to-day a resolution asking for
an investigation by a committee OF
the House of all war contracts and
expenditures and of the reason why
Attorney General Daugherty had not
brought civil and criminal prosecution
in cases demanding public interven-
tion
Mr.. Woodruff, in a speech intro
ducing his resolution, attacked the
War and Navy departments and the
Attorney General for the manner in
which they had handled war contract
cases. and said that if Mr., Daugherty
did not carefully look to the interests
of the Government he would move for
his impeachment. A. Mitchell Palmer
and ether Wilson Administration Of
ficials were criticized by the Michigan
man.
Representative Royal Johnson (Rep.
S. d. backed up Mr. Woodruffs
statements and declared the disclos-
ures made showed the existence Of IAN
invisible financial government"
Representative Woodruff addressed
the House during the consideration OF
the naval appropriation bill. He said
he had attempted to obtain the adop-
tion OF an amendment to the army APP
preparation bill which would give funds
to the contract audit section of the
finance department of the War Depart
ment to make an audit of the 100000
war contracts.
Chance to Recover x46,OOO,OOO.
On March % last, he said, only 5000
Of the contracts had been audited. but
that the Government had received in
formation upon which to base re-
covery of approximately $46.0O0.oo0 from
| the contractors.
| In a few OF the air service contracts
Investigated, he asserted, II was dis
closed that overpayments running into
the millions in individual cases had
been made by the Government and that
the contractors had been guilty of acts
Depa rtment OF Justice.
Notwithstanding the fact" said the
Michigan Representative. that much
OF this information had been in the
hands of the Department Of Justice for
months, no determined action looking
either to the recovery of the money due
to the Government or to the criminal
prosecution OF the offenders has been
taken.
From time to time. il has been in
timated BY members OF Congress and
others. that there was to be no real
prosecution of those offenders. but
somehow / could not quite believe that.
IT did not seem possible to me that any
man In high Government position could
or would deliberately close his eyes and
his cars to the demands of clear
public duty"
Mr.. Woodruff declared that the House
had requested the Attorney General by
vote OF 2g9 to TO institute investi-
cations before grand juries for the pur-
pose OF procuring the indictment and
prosecution OF such persons as were
guilty Of criminal practices. but he OBJ
served that the statute of limitations
had probably operated to defeat the ex-
pressed wish OF the House.
Representative Woodruff next alluded
10 the sale OF the Bosch Magnetic Com
pany BY the Alien Property Custodian
TO Martin f. Kern for s4,150,0O0. Kern,
he said, was friend and client of A.