The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1922-05-10
Writes Harding in Re-
ply to Criticism of
Laxity.
CLAIMS WILSON
AIDES INVOLVED
Letter Transmitted to
Congress Tells of
Robbery"

tice in prosecution Of war Ersfters.
Attorney General DauEherty prom
ises to tear the lid OF and reveal
some influential personagcs" said
TO have hampered graft prosecu-
tions.
A letter written by Mr.. DauEh-
erty TO President Harding and
transmitted by NJ. U=-L.== . she
House yesterday. promised a swe.p-
ing expose which, according L" pr
rate information channels. threat
ems to develop a scandal affecting
some well-known war workers uu-
der the previous administratir1 -
Approximately 200 war con;rac;
probes, involving about 800 coo 600
comprise the cases in question.
Meets Charge Of Delay.
For some time there have becn
pungent criticisms. led by Repre-
sentative Woodruff. that the Morsr
ship contract scandal. the ALLEGED
irregularities in the sale Of thn
Bosch Magnetic Company by rE.
Alien Property Custodian. the Lin
coin Motors war contracts aud
other transactions Of which there
have been both discussion and
probings, have not been exposed O.
the light and air.
Mr.. Daugherty's letter O. 'HE
President was in answer to a de-
mand in Congress for an inycstf-
cation OF alleged laNity by tho
Department Of Justics in prosecuf-
ing war frauds. Mr. DauEhp-rv
assures tho Presidep and Conrrsr.
that as soon as the law Is passsS
granting an additional grand ju-r
in TIE District Of Columbia. lit Is
planned 10 convene this SECOND
grand jury Immediately and 70 cr'-
ploy II as long as may he ncceS-
Sary for the consideration or U1~
contract cases. the venue of wh .,h
falls within this district"
Would Amaxe Country.
in connection with the prosecu-
tio9 OF the cases in question some
names which would amaze the
country have been kicked abotr
Washington sor weeks. Mr. Dauch-
erty himself explains the heSitanry
which possibly has been responsible
f'r delay in prosecutions when he
Tt is a terrible thing to Oharr-p
a citizen with robbing his own gov
ernment and have insisted uplu
most painstaking investigation rf
all cases involving charges OF
crimiEality. The Investigations in
number OF the more important
cases either have been completea>or
are rapidly nearing completion. In
each instance. they disclose a SUI
ficient indication that a crime h-s
been committed 20 warrant submit
ting them TO a grand jury"
Not only have principals and nth
ers implicated in the alleged crimes
against the government carried or
their activities in Washington. hut
according TO Mr.. DauEhsrty. thee
is reason 20 believe there will be
indictments against principals and
different groups OF individuals" in
other parts Of the country. He es-
Inmates that presentation % these
cases will continue here and else
where throughout the summer.
Took Place During the War.
The transactions out OF which
these fraud cases grew" NJ.
Daugherty explained in his letter.
in a vast majority OF cases took
place during the preceding admin
istration. Naturally little or moth
ing was done during that admins
tration to bring these matters 90
light" Then follows his direct
charge against unnamed individ-
uals whose alleged connections with
different cases may create a scnsS-
tion:
"As the country will soon have
reason to know. influential person
ages in the government who had
knowledge of these transactions
and were in position 90 make dis
closures, were personally interested
in concealing them. Upon coming
into Office" he added. 4 found not
only that practically nothing had
been done in the way OF investi-
eating and prosecuting these Of
fSnses, but that no machinery had
bean set up for handling the cases
in an orderly and systematic way"
Has Two Cases Ready.
Two cases are ready for imme-
diate submission to the grand Jury.
One "is nation wide in scope" SAYS
Mr.. Daugherty. "and the Investigation
has covered a wide range. IL this
case had been presented without
preliminary investigation. the prin-
cipals might possibly have been in
dicted. and their liability 70 the
government in large amounts es-
tabliShed However, this investi-
cation conducted in the most con-
hdential way. has developed that a.
great many others are also IN
volved in the unlawful transsc-
tions."
When these two cases have bees
presented. Mr.. Daugherty said,
third case which also has rec .rcd
considerable publicity VIII be ready
for presentation. Still Others. nov
in the course OF preparation. win
follow. In order To make the work
effective the Attorney GCuetai
asked for an additional spprop-is-
tion OF s5Oo.O0o from Congress.
Taking up the case OF the
coin Motors Company a.
Mr.. DauEhcrty sad thc - -a-
ment's claim for $4,000 noe 5r-1.
hled. after delay necessita by