The Washington times., 1922-07-20
ALLEGED WAR
GOUGER. HELD
IN RUM FRAUD
c. s. ShotwelI, Indicted Here
With Phillips, conspired to
Withdraw Liquor, Claim.
BY Universal Service.

Charles 8. Shotwell. indicted here
Tuesday with John l.. Philips ana
eight others. charged with conspir-
acy to defraud the Government In
the sale of surplus lumber stocks Of
the War Department. is the same
Shotwell who was indicted last
November in Newark. n. j., in an
alleged whisky withdrawal conspir-
acy. II was revealed here today.
Shotwell also figured in the Meyer
legislative committee Investigation in
New York last year. as the man who
financed the slush fund raised in the
s<iing Of 1921 to force the Detective
ltureau bill through the New York
legislature.
Was Also Army Captain.
Shotwell was indicted in United
States District court at Newark
Nov. IS, 1921, on four counts charg-
ing bribery and conspiracy to with.
draw vast quantities OF whiskey from
a bonded warehouse on fake with
drawal permits. He surrendered
himself to the Federal authorities in
New York on November %.
Shotwell, an Army captain, was
Approvals Officer OF the Materials,
Disposal and Salvage Division Of the
Air Service up to Sept. IL, 1919,
and from that date to October Q,
1920 was business manager OF the
division. In these capacities he had
charge of the selection for sale Of
surplus aircraft lumber, supervising
the inspection Of same and approving
the same. Shotwell Is charged with
conspiring with Philips and associ.
ates to turn over the surplus lumber
at less than market prices.
Ernest G. Morse. another of those
indicted with Philips, is now said to
be in Poland as the representative OF
a New York Polish firm. The war
frauds grand jury here is not through
with Morse. II Is known that he Is
under investiga ton at this time In
connection with the part he played
in the sale Of the Old Hickory pow
der plant, near Nashville. Tenn, to
the Nashville Industrial Corporati ton.
The grand jury has been working on
the Old Hickory case for two weeks
and will continue on II for probably
two weeks longer. Morse was assist.
ant director Of sales and later direc-
tor Of sales of the War Department,
and as such is alleged to have con-
spired with Philips and associates.
Philips at Bryn Mawr.
George E. Sullivan, Washington at
torney, representing Philips. called
at the Department of Justice today
to secure a copy of the indictment
against his client. He stated that
Philips, who at present is at Bryn
Mawr, Pa, would be in Washington
the last Of this week or the first Of
next to acknowledge service on the
indictment. Philips has been under
$4,000 bond since his arrest here
June s.
The others indicted, except Morse,
are expected here within the next
week also to acknowledge service.
II any OF them fail to put in their
appearance voluntarily within a rea.
sonable time, II was stated at the
Department OF Justice, their arrest
would be Immediately ordered. II
was stated the department knows
where each one Of them is and that
agents OF the department have them
under surveillance.
In event arrests become necessary,
II was stated the procedure would be
to send certified copy Of the indict.
ment to the United States district
court for the Jurisdiction In which
the defendant might be and the Judge
OF that court would issue a warrant
for the arrest.