The Washington herald., 1922-05-22
Says Chairman Campbell
Is Holding Up Wood
ruff Resolution.
DAUGHERTY TO ACT
SOON, is PROMISE
To Prosecute Cases Him.
self This Week or Name
Some One Else.

Charges that Cairman Campbell
of the House Rules Committee is
bioskIng investigation of war-con-
tract frauds were made yesterday
by Capt. H. L. Seattle. formerly of
the Army Air Service. Who resigned
April as a special Investigator Of
The Department of Justice in pro-
test against the delay in presenting
aircraft cases
Meanwhile the dead-line which
Attorney General DauEherty has SET
FLOR himself to get under way on
the prosecution of war-frauds cases
is expiring. This week. he has an
nounced. either a competent lawyer
will have been found to take charge
! Of the work or will take charge
OF II himself.
Representative Roy o. woodru-.
Of Michigan. who with Representa-
| tive Royal Johnson, Republican. of
South Dakota, introduced the reso-
| luton which has obtained $500, 900
from Congress to carry on this
work, has no intention of halting
his activity even after Daugherty
or his special assistant gets under
way.
Only Third of 1t, He Say.
Indeed that is only a third of
| it," Woodruff said. The Alien
| Property Custodian and the War
Department are going to have
their share of investigation yet
And II the Attorney General doesn't
soon get under way he will hear
more from Congress.
our resolution calling for a
Congressional investigation has been
reported out of the House Rulees
Committee favorably. and I hope,
will soon be voted on by the whole
House. What Investigation isn't ac-
complished by the Department of
Justice will be accomplished by a
Congressional investigating COM
mittee.
And we're going to see that war
frauds get an airing from every
POSSIBLE angie of the government Z
investi eating facilities"
Chsfes Under Delay.
This investigation on the Hill
will be conducted largely with the
assistance of Capt. H L. Scaife.
Scaife has been assisting Woodruff
n preparing evidence fCr some time
and is serving without compensa-
tion. despite offers of substantial
atest offer, according to Scaife, has
rome from Col. Thomas B. Fielder,
a close personal friend of Daugh-
erty. The offer was made in con-
nection with the Bosch Magnetic
ease involving a loss to the govern
ment of 6s.250.S3.
Since his resignation from the
department. Scaife has remained
sflent. However, the investigating
resolution hasn't reached the floor
1f the House yet, and Scaife is
Ehafing under the delay.
Resolution Held mp.
The cause of clean government
Ind civic righteousness is now
being as effectively blocked in Con-
Eress as the Investigations were
blocked in the Department Of JUS
ice" he said
The remedy lies in the passage
bf the Woodruff j ohnson resolution
10 investigate the caues of delays
in the prosecution of these cases
Such an investigation would dis
close the facts to the American
eople.
But further progress in the fight
now being blocked by Chairman
ampbell. OF the House Rules Com
nittCe. who voted 10 report the res
Ilution favorably. but who now
olds the solution in his pocket and
efuses to bring it before the House
or a vote"
Not Matter of Funds.
In referring to the delay at the
Department of Justice, Scaife said:
1t has not been a question of lack
pr funds in the department which
prevented action in war fraud cases
n this connection 1 would cite the
Ease of the wright-Martin Aircraft
Corporation. in which the audit had
been completed and the case with
hrawn from the handa of the United
States attorney in New York
through the influence Of the Secre-
larry Of War, who acted at the re-
quest of Charles Hayden. a director
bf the company.
This has been done notwtth-
tanding the fact that ]. NJ. VAIN
fright, Assistant Secretary of War
as informed Secretary Weeks in
Triting that these people had ex.
austed every appeal in the Wal
department.. and that their case wa.
the hands OF the United State.
ttorney for suit
Overpayments Disclosed.
This case was withdrawn from
|e hands Of the United States at
rney ive months ago. and the fac
bat no suit has been brought t.
ate cannot have been on accoun
a lack of funds. The report o.
be audit in this case has disclosed
Ferpayments to the amount of IS,
;7.47s.75, and among the transac
pms of this company which wer'
ffticised was the resale of prop
Fty to <he company for s10.s42.64
pr which the government had pal,
ore than a million dollars"
tAll told. there are 10000 wa
aud eases. OF these 1900 hav,
een Investigated and the con
acts audited. One Nock of cases
hich includes the aircraft. surpiA
mber. Bosch Magnetic and Chemi
] Foundation. ALLEGED frauds rep
sents. according to figures held b,
oodruf, approximately s53.7s1.
% loss to the government
Ustermyer Attacks Dasghefty.
Samuel Untermyer. New York at
rney. sharply criticises Daughert,
q letter to Woodruff The latte
ID suggested that Untermyer vol
pteer his services in prosecuting
aud cases.
Untermyer declined the offere. ex'