The Washington times., 1922-12-31
Continued from First PageJ

placed these contracts. 1t is alleged,
at prices ruinous to the Govern
| ment.
| They are charged with conspiracy
to defraud the Government by un'
lawfully delaying and hindering the
| administration of the laws and
policies and procuring to be paid
to contractors for the erection OF
army cantonments sums OF money
| I'm excess of what was reasonably
earned and due them under the
contracts.
One of the numerous overt acts
alleged relates to the contract for
the construction OF Camp Devens.
at Aver. Mass. for the procurement
of which, II is alleged, the defend
ant Mears received a commission
OF $4,000.
COVER SEVENTY PAGES.
The indictments, which cover
seventy pages. deal with contracts
amounting to $50, 100000 and charge
that of this amount more than $ll,-
000. 900 was paid TO contractors Sc
lected by the defendants. who
awarded the contracts under the
cost plus system in manner en-
| tirely unbusinesslike and in de-
| fiance Of all preccdents, rules. and
regulations governing such matters.
Mears, as general manager OF
| the Fred r. Ley & Co., and
secretary of the emergency con.
| struction committee, Is charged
with having ignored the law re-
quiring him to consult with the
Secretary Of War in letting the
| Camp Devens contract to his own
company.
! 1t was part OF the defendants
scheme, the indictments allegn, TO
obtain control OF the emergency
construction committee in order that
they might profit and that their
past and future ellen and friends
might profit. The work of the emer-
gency construction committee in
cluded the construction of sixteen
national army Canps. sixteen ma.
tional guard camps, numerous ware
houses. port terminals and fGtifi-
cations-in all about 500 separate
contracts.
The alleged conspirators are
charged with numerous overt acts
in connection with the Overruling
OF the responsible officers OF the
| Government.
CAUSED GREAT LOSS.
The defendants. it is alleged,
caused great waste of the moneys
appropriated by Congress and ,,-
cured unjustifiable profits and benc.
fits TO Fred T. Ley & Co, the George
| A. Fuller Company. the Thompson.
| Starrett Company, Stone Il Webster,
the Cleveland Construction Company
and other contracting firms.
During the year 1917, ii is
charged. the defendants recklcssly
land in disregard OF the interests
| Of the Government, hindcrcd and
delayed the initiation and progress
and completion of tn" Government
cantonmert and camp construction
! program with the inevitable great
Expense and loss in efficiency thcr-.
from and resulting in The sickness
md death Of it's soldiers.
The alleged conspiratOrs are
ilso charged with disrcrarding an
act of Congress Of May II. 1917.
which forbid IN" cxp"nli'ur, If any
sum over $1,000 without the con
sent and approval Of the Secretary
Of War, and, il is charged, thcs"
DEFENDANTS ignored the Secretary
and obligated the Government TO
millions Of dollars which, IL is al.
legged, went into the hands Of the
favored contributors. who, il is al.
legged. presented bids and fees
higher than those which would he
charged by responsible contractors,
COST.PtUS SYSTEM.
The indictments go further and
state that, during April and May,
1917. the defendants induced the
responsible officers of the Govern
ment to drop the accepted system
of competitive bidding for construc.
ZION work and caused these Govern
ment officers TO adopt the wide
open cOst.plus system, which, u is
claimed. I'm nowise safcguard"d or
pretended TO protect the interests of
the Government
The defendants also. It is al.
legged, deliberately refused To con.
slider offers made by contractors
with whom they were not in accord
and Who agreed 10 do the required
work for less than those who We're
In accord with the alleged con
spirators. During 1917 and 1918. i
Is alleged, the utlcnuantS StlGCttu
contractors and subcontraCtors by
the process of elimination--a pro
cess alleged TO have been agreed
upon in advance, to do substantial
portions of the work required and
pyramided the fees and expenses
! in favor OF themselves and the ia.
NOred contractors.
INTEREST IN FIRM.
The defendant, CrowCll, 1t is al.
legged. in furtherancc of the alleged
unlawful conspiracy. approved an
award for the construction of the
proving grounds at Camp Perry.
Ohio, 10 the Cleveland Construction
| Company, the capital stock OF
which, it is claimed. was owned by
the firm of Crowell, Lundoft, Lit.
tie Company. In this instance, ii
is claimed, Crowell was and Is in
terested i'm this firm and naturally
interested In the profits which ac-
crued.
Lundoff. II is alleged, as general
| p,apa pf tho Cleveland COnStru