New-York tribune., 1922-05-14
275 War Fraud
Cases Involve
sl92,OOO,OOO
B;ll Providing S5U,oVo
Fund for Attorney Cener-
~. Prosecution Expenses
Reported Back TO House
speedy Passage Is Urged
r.,,m;ttee Declares Sums
To Be Recovered Will
Cover Government Cost

HASHlNOloA>, s"es 49,
-. government will recover from al
,.usd war fraud cases will De many
-, n. amount granted to defray ex-
,en.es incident to their prosecutions
$. House Appropriations Committee
s..lared to-day in reporting a bill
.,ry;ur $780, for use by the De
partment of Justice as a spec,a' M
v.,.isating and prosecuting tnnd'
rxplsiring the need o. money and
u., assistance. Attorney General
pausher.y told the committee as re-
,,.,led By printed hearings made public
.o.a.v. that about 21o such cases rang
.ny from several thousand dollars to
s.v.rs, million dollars. we're pending
~. .l.. tAs total amount involved ag
eresated sls2,ooo,ooo.
Urging speedy passage OF the o'l' so
.b.. the Department Of Justice might
be adequately equipped "for successful
disposition of the case the committee
declared those who had defrauded the
government during the war should be
prosecuted to the limit with all the
viror the government could command,
rbile .hosc upon whom unjust sus-
picion might rest We're entitled TO
know promptly that such suspicion was
not justified.
Heavy Expenses Necessary
The committee reported that the
character OF the cases was such that
the expense of handling them ''is great
er than that of any class OF work the
department has to deal with, except,
perhaps, antitrust prosecutions" and
that some Of the ablest lawyers in the
country had been engaged as counsel
by those against whom the government
was contemplating civil and criminal
action.
The number Of cases mentioned by
the Attorney General. the report added,
will increase from time TO time "as the
War Department progresses with the
work Of geing over the $4,000 cases
which are yet to be gone over by that
department.
Mr.. Daugherty said in his testim onv
it was his intention to engage the best
lawyers obtainable and TO use the spe-
cial fund exclusively for inves tigation
and prosecution of alleged fraud cases.
~ should say that II the work costs
100000 said the Attorney General.
"we ought to get through on $4,000
or 100000 on attorney fees. with
their expenses added to that, and $780,
coo or sl50,000 on account of experts
and accountants, because these three
activities will comprise the princinal
part Of the work. I expect to return
TO the government very much more
than this appropriation.
No Salary Limit for One LAWYER
Under the bill as amended nv tho
committee the Attorney General would
oe authorized to employ one lawyer
.,'hou' ,imitation as to salary, but all
other salaries of lawyers. experts or
accountants would be limited to $10,-
200 year
Reehecklng of accounts, Mr.. Daugh-
Gty said, will disclose many mistakes.
snd ne predicted that many of the per-
sons who did business with the govern
Aent VIII be coming in now"
!, i think you will agree with me that
me work should be cleaned up" he
ADDED ut is due the people of the
country that they should know the real
'tory OF these transactions. The gov
think, will realize very
material profit on this investment. We
nave gotten to the point where we are
up against 1T for money and men"
Inc Attorney General declared he
vas mot begging for this money" add
Ing:
'lt is as much your responsibility as
mine. | am just giving YOU my recon-
hendation after some experience in the
matter for q year and after consulta-
.ion with those under me who are
doing this work"
Some Are Honest Disputes"
Representative Bryns. Democrat, Ten
nessee' asked Mr.. Daugherty if he could
'sy now many war fraud cases were on
1and in the department July /, 1921
do not know" he replied. "You
zee war fraud cases is hardly fair
ssy to put It, There Will BE- honest
hsputes IN regard to cases which 7 do
10y consider fraud cases"
Inc department, he explained found
ne number constantly changing, as II
received word from the War Densrt.
nen' that settlements had been com
'!esed while his department was stiu
"orklng on the cases.
~ ~ IS the intention of the House to
axe AK up the bill Monday with another
'Ih urged by the Attorney General for
"a "a aodltlonal grand jury in the District
inn i o''u'nDla n1 Tor handling such litiga
,On. meanwhile there seems Little
aslo on the part Of the House
Iaaers . r, to give early consideration -
,ae Wood!rutf-Johnson resolution for
nsestigatlon of charges OF layitv ~
var fraud prosecu+;on '"N''E IN