Evening star., 1922-11-24
$2Q,0|)0,0DO WAR
| FRAUD IS CHARGED
T0CAMP BUILDERS
Government Names Con-
tractors in Four Suits to
Recover Money.
WASTEFULNESS CHARGED
| IN BILLS OF COMPLAINT
Defendants Accused of Taking Ad-
vantage of Government in
War Stress.
BY the Associated Press

s2o.0O0.o0O, alleged to have been OBJ
tanned fraudulently from the govern
meht IN the construction of four Army
cantonments during the war. was in
stltuted today by Attorney General
Daugherty as the first formal step In
far-reaching prosecution of those
who held contracts for the building
of war camps
TIE four suits begun today were filed
simultaneously in United States district
courts in four states. and involve charges
Oh fraud III connection with the con-
Structlon of Camp Upton, \. y. Camp
Jackson. 3 G., Camp Sherman, Ohio.
ana Camp Funston, Kan. Other civil
actions and possibly criminal prosecu-
lions are to follow. it was said at the
department of Justice, involving a total
of more than $75.00O.0OO and reaching
INTO virtually every part Of the country.
In each Of the four cases the suit
was filed against the prime con-
tractor responsible for construction
OF the camp. The four defendant con-
Germs and the amount the government
seeks TO recover from each are the
Thompson-StarrettC Company. builders
of Camp Upton. $4,000. .0On: the Hard
away Contracting Company. builders
or Camp jackson. $1,000. 900: a. Bent
ley d Sons. builders of Camp Sher-
man, s5.o0o.0o0, and the George A.
Fuller Company. builders of Camp
Funston, $4.oo0.000.
More Suits Likely.
The Camp Upton suit was filed at
the Attorne. Generals direction at
Brooklyn. y. y: the Camp Jackson
suit at Columbia. s. G.; the Camp
Sherman suit at Columbus. Ohio. and
the Camp Funston suit at Topeka.
Kan. 1t was indicated that similar
actions would be brought at these
places later against minor contract
ing firms who helped in the cons nstruc-
tion of the four camps. and that
should any criminal action be sought
the evidence would be placed before
the special war frauds grand jury
now in session in the District of Co
lumbia.
The bills of complaint. drawn up At
the Department of Justice result
of more than a year OF Investigation,
are virtually identical in the four
suits filed today and alleee that the
defendant contractors and their
agents were guilty of fraud. gross
negligence. inefficiency and waste in
their relations with the government
at time when government officials
were unable. because of the stress of
war, to fully inspect the work of con-
Struction.
At such a time, the complaints de-
clare, the defendants betrayed the
Z
their patriotism and connived TO
render A minimum of return for the
money they received. The result. it
is charged. was lot only a loss of a
large percentage of the funds invest
ed by the government in its Army
camps, but also an embarrassment and
delay in the nations plans for
prosecuting the war
In the case of Camp Jackson. the
sum fixed by the government investi-
gators as recoverable and named in the
suit against the Hardaway Company
is more than half the total cost of the
camp. while in the other three cases
the amounts asked for are close to 40
per cent of the whole construction
outlay. Camp Jackson cost the gov
ernment s12.710.720. Camp Upton.
sl5,37O.s20: Camp Sherman. $I3.e47.-
$40. and Camp Funston. $1l.715.52O.
In their Investigations Attorney Gem
eral nausherty and his assistants.
working in every part Of the United
States. already have examined into
construction contracts to which the
government was a party. and it was
evident at the department today that
the four suits already filed were re-
earded as only beginning, of what
promises to be the most far-flung legal
prosecution ever instituted by the fed
eral government
The complaint in the Camp Sherman
case, differing only in minor respects
from those filed in the other three slrits
charges that the Bentley company mis-
represented to the government its pre-
vious experience in construction work
and that despite the unusual trust i'm
posed by the government during the
emergency the company did knowingly.
recklessly. Illegally and fraudulently vio-
late and abuse such confidence and trust
and breach of said contract.
1t is charged. further, that the gov
ernment eventually was compelled to
employ another concern to complete
the work of construction. so that the
Bentley company mot only caused
grea: damage and loss to the plaintiff
through it's said wasteful. inefficient
and fraudulent acts and conduct. but
in addition thereto greatly delayed
and embarrassed the plaintiff in max
ing preparation for the war into
which it had entered"
Charges i'm Complaint.
The specifications included these
charges against the company:
That il stopped construction work
without having properly completed 1t,
causing great loss.
That it sold to and purchased and
resold to plaintiff at profit to de-
fendant large quantities of mate
rial"
That 1t presented for payment ell
legal and unwarranted claims and
vouchers.
That it "ordered and permitted large
amounts Of useless and unnecessary
work"
l. That it employed workmen with
out reference to skill, experience or
other capacity in the various build
ing crafts"
That it permitted continual loafing.
misdirection of effort and sabotage
on the part of workmen."
That 1t ordered and procured ex-
cessive quantities of materials of all
kinds without reference to the quality
or the need therefor"
That 1t let subcontracts for portions
Of the work that 1t was bound under
the contract to perform itself.
That 1t "wrongfully and fraudulent
ly employed" accounting and purchas-
ing forces in duplication OF work
being done by the government.
That 1t had no adequate salvage sys-
tenn, ''but, on the contrary, deliber-
ately and intentionally caused or per-
mitted great quantities of useful and
valuable materials to be destroyed"
That 'in many instances trucks
were rated beyond their actual oapac-
ity. so that 1t might collect In excess
for rentals"
"rhe plaintiff avers," adds the bill.
! that all of the acts herein complain
cd Of were done with ;he counivause