The Washington times., 1922-05-19

Q(J|ZW|LL
bERUSHED

Continued from First Pass)
Losses on war contracts, through
waste and frauds, were $3.50. 000,.
900, Congressman Graham declared
In the House later yesterday after.
noon.
He said:
AT our present rate OF expendi.
lures under this Administration, II
we had the money. absolutely wasted
during and since the war by the last
Administration, we could pay all
the running expenses OF he Gov
eminent for four years, without Il
cent of taxation.
1T is entirely safe TO say that of
the vast sum Of $14.54t,610,2l3.6 IS
expended by the War Department
from April 6, 1917, to June /. 1919,
more than one-half was wasted and
given away to war contractors"
In the settlement II terminated
war contracts, Mr.. Graham declared,
there is but little doubt that on all
audit OF these claims vast sums will
be found to have been paid, either
for carelessness or absolute collus'
ion with war contractors"
There are dozens Of cases in
which men employed by corporations
or individuals drew salaries as Off.
GERS and did business with their
own firms" he said.
In the course of Mr.. Graham's
speech, Congressman johnson, Dem
ocrat, of Mississippi, asked:
did not the gentleman's investi.
eating committee disclose that these
contractors were Republicans who
are liberal contributors to the cam.
paign fund?"
Mr.. Graham replied:
Not ali, though some OF them
were, but that makes 1t all the
worse"
us not that the reason they were
not prosecutor" Johnson asked
further.
mo, there was no such reason
that I know Of" Mr.. Graham said.
when his investigation commit
tee put our finger on some scala
wag who had defrauded the Govern
ment and ought to have been prose.
cuted," the former chairman
charged, 1.-The Democrats came in
with a minority report, and the
Secretary OF War Baker, appointed
a committee to go out and white
wash him."
Mr.. johnson asked why the Re
publicans will not permit the Con
gressional investigation of war
frauds and laxity of the Government
departments under the present Ad-
ministration in prosecuting them
Mr.. Graham said he did not know, as
he was mot Immediately concerned
In the matter" Asked directly II he
was in favor of the investigation, Mr.
Graham said:
Strong for Prosecution.
IT am in favor of the prosecution
OF the fellows who robbed the Gov.
eminent during the war, that is what
] am in favor Of. I always knew
there were thieves, and do not care
whether they were Republicans or
Democrats, II they are thieves, thew
ought to be prosecuted, and l hope
and believe they will be prosecuted.
Commenting on Attorney General
Daugherty's charge that important
papers in connection with fraud cases
had been destroyed by persons high
in the Wilson Administration. Con-
gresham Graham said:
There were people brought before
our committee and people brought
before the grand jury out OF the de-
partment who were concerned with
the keeping Of these records who de-
liberately hid and lost papers for the
purpose of keeping members of the
committee and officers OF the De
partment OF Justice from examining
them"
New Audit Unit.
Slowness in auditing war con-
tract records has led Attorney Gen
eral Daugherty to form within the
Department of Justice a special
unit consisting of trained account
ants. They will become a vital
part of the war frauds division to
be created under the new $500, 900
appropriation by Congress for in.
vestigating and prosecuting war
grafters.
The Attorney General said today
there had been neglect in pushing
tho war fraud cases through the
auditing stage, and as result
serious delay had been caused in
cases which should have reached
the Department Of Justice for
action.