The Birmingham age-herald., 1922-06-01
WASHINGTON JURY
 BEGINS PROBE OF
 WARFRAUD CASES
Disposal of Surplus Lumber Will Be First Contract h. vestigated by Justice
 Department
By Associated d Press


 Washington, May 31.-Investiga- tion of the socalled war frauds cases began today before 8 special federal grand jury when United States Attorney Peyton Gordon pre- scented as the first of the govern ments series cases dealing with war time contracts, that involving dis posal of surplus lumber by the-uaar- termaster corps of the United States army.
 Without a recess intervening tho grand jury, empaneled under a re- cent act of Congress, sat for four hours, the deliberations being ac- eompanieds by the secrecy usually surrounding such proceedings.
 Extraordinary precautions were taken to prevent leaks. Attorney General Daugherty announced that at no time during the progress of the grand jury investigation would he dfvulse information concerning its activities nor the names of the cases presented and Assistant Dis trict Attorney Gordon declared all connected with the inquiry were sworn to secrecy and he could not say what case would be first on which the government would ask Indictments.
 Subpoena Papers
 One of the first acts of the grand jury was to subpoena all available papers and records bearing On the lumber cases. Witnesses were on hand to testify but their names were withheld.
 While the grand jury was sitting, Attorney General Daugherty and his recently appointed special assistant attorney general put in busy day. meeting with the regular staff in a series of conferences.
 An announcement issued from the attorney generals office late in the day disclosed that he had conferred with Chairman Graham of the house committee which conducted the inquiry into war expenditures and that he "also had a conference with former Governor Dineen of Illinois in connection with these cases.
 "The department is not ready at this time to make any further an- nouncement in this connection" the statement added.
 Former Senator Charles s. Thomas of Colorado, a democrat, whose ap- pointment as a special assistant to the attorney general was announced earlier in the week. took the oath of office and entered upon his du- ties today. It was said his duties would be largely that of review of cases"
 Require Forty Rooms
 The departments statement said that "40 rooms would be required for quarters for the legal force which will be employed on these cases"
 The witnesses in these cases" the statement said, "are not only scattered all over the United States but many of them have gone to for eign countries and some of them have established themselves In busi- ness abroad. The department has found it necessary to arrange to have certain witnesses to come to Washington from Argentina and Bra gil The investigation which the department of justice has been con ducting for months has revealed the fact that many witnesses were killed in the war or have died since of dis eases contracted in the service.
 ''All of these circumstances, com bined with those naturally inherent in the great secrecy with which many of these matters were con ducted during the war period, have rendered these cases exceptionally in- tricate and difficult of preparation. The department has long realized the, necessity of exercising the ut most care and patience in convert h3rf1 n hA A. sented intelligently to a jury and from which convictions may be ex- pected, the often loose and dis jointed departmental reports upon which they are predicted. These re- ports often contain allegations and charges unsupported by yIevidence ana the preparation of the evidence thus becomes matter of the utmost con cern For seven months this work of preparing cases has been in prog ress in the department.