Albuquerque morning journal., 1922-12-31
+ D RMER OFFICER
Yin 7 H { VI Il son
"A D NJ | N|STRAT|0N
ONE Of ACCUSED
Ex-AssiStant Secretary OF
the Navy and Half Dozen
Others True Billed on War
!, Fraud Charges
FIRST BIG SALV0 IN
DAUGHERTY'S ATTACK
1t Is Estimated That the
Amounts Involved WHI
Run Into Hundreds of Mil
lions of Dollars


washington, Dec. so (by the As
}sociated Press. Benedict Crow
ell, assistant secretary of war un-
der the Wilson administration and
six dollar year" men associated
with the Council of National de-
tense, were indicted here today by
4 the special grand jury involving
war frauds on charges Of conspira-
ey to defraud the government in
construction OF war time army
"A fmps and eantonments.
NFe others indicted are William
h-erstarrett, Morton G. futile,
( u ms w. Lundrf. Clair Foster
, H. McGlbbons, James y,
Conspiracy Charged
\. TO be Indictment charges a con-
TO maiadminister existing
III I'D regulations; TO control
~ =" lg of contracts TO. friends
S and clients under the
n u.s. which, it is charged,
4 NJ: in q loss to the govern
IA 4NeI millions of dollars and
he morale Of labor.
%NNl1af Nictments are the first
in Attorney General
- 4os attack on many war
lOacts which the depart
1stice holds after ex-
|, trOuDleWestigation to be fraud
srB are expected to fol
ufs1Ck ffss estiinated taaf sis
afi1 H.ics Involved when tho attor-
ney generals fun program is un-
2lder way win run into hundreds
fof millions OF dollars.
Today's indictments came as the
result of consideration by the
grand jury of a mass OF evidence
which the attorney general has
been gathering for IS months. il
was presented by former Repre-
sentative McCulloch Of Ohio, now
special assistant attorney gem
eral.
Charge AZ Overt Acts
The indictments, charging a.
overt acts and applying TO all
named alike, charged that con-
tractors, their agents, engineers,
architects and officers Of the gov
ernment entered a conspiracy 70
set up system profitable 70 the
contractors and prejudicial to the
government and to control the CIV
ing of contracts to friends, assoc
ciates and clients, past and pros
pective.
The emergency construction
committee of the Council of Ma
tional defense, the indictments
charge, was used as the vehicle for
carrying out the alleged plans,
d'he government charged that the
-faileged conspirators used their
Z Slembership on the committee to
'-6nlawfuHy influence other Officers
of the United States in the plans
and policies for carrying out the
war time construction program
*to attain the cost plus system. 10
eliminate the usual safeguards Tor
the government and to deteat
checking up and supervising the
contractors.
Government Lost Millions
The indictments further charge
that the alleged conspirators used
their positions for their own gain
and assisted contractors in evadng
the true intent of the contracts and
M collecting large and un1ustifia-
sife fees. AS a result OF the con-
fSpiracy, the indictments charge
the United States government lost
rillfons of dollars, the morale OF
labor was reduced and the gov
eminent was deprived of protec-
tion during the emergency con-
struction period.
III is further charged that during
1917 and 1918 the alleged conspir-
ators held daily meetings TO plan
ana carry out the details Of the al
legged conspiracy and even secured
The removal OF other officers OF the
government who hindered the car
v Iying out of the plans.
Specifically, those indicted are
pcbarged with violation of section
81 OF the United States penal code
which preseribes fine OF Sl0,VOp
or two years imprisonment or
kboth; of various other sections OF
NAhe revised statutes of certain
#army regulations and sections oil