The New York herald., 1922-05-26
DAUGHERTY ASSUMES
PERSONAL CHARGE OF
GRAFT PROSECUTIONS
He Will Present First War
contract Case to Jury
on Tuesday.
NAMES SOME OF AIDS
La Toilette Offers Letter
From Untermyer- Wood
ruff Fights On.
FREED LIQUOR, CHARGE
Watson Says Secretary at Eel
der's Request Released
Seized Rum Here.
FREED LIQUOR, CHARGE

Special Dispatch to The NEW YORK HERALD.
New York Herald Bureau,
Washington. ID. c., May 25.
Attorney-General Daugherty an
nounced tonight he would take per-
sonal charge of the prosecution. of the
war fraud cases, to be assisted by a
group of special assistants. three Of
whom he named. He said also that a
special Federal Grand Jury being
formed TO consider indictments al
ready has ten members and will be
functioning by Tuesday. when the first
case will be presented.
The Attorney General was a target
for further attacks to-day in Congress.
Senator La Toilette (Wis.), after read
ing a letter from Samuel Untermyer
about his findings in the Lockwood in
quiry in New York, threatened what
would amount to impea chment of At
torney- General Daugherty if he fails
to act.
Senator Watson (Ga.) charged that
Attorney-General Daugherty. at the
instigation of Thomas L. Fielder, his
associate in getting Charles W. Morse
out Of prison in 1912, recently OBJ
tained the release of two large ship
ments Of liquor seized by dry agents
in New York
In the House Representative Roy o.
Woodruff (Mich) blocked the House
program for a three day recess, in
sisting that 1t first pass his resolution
for an investigation of Mr.. Daugherty
Has Followed Every Case.
| The Attorney Generals statement e.
the part he will take IN prosecuting war
grafters came In connection with a state
ment from the Department of Justice
announcing the appointment of Repre-
sentative c. Frank Reavis (Neb.). who
will resign from Congress for the pur-
pose. and Col. Henry W. Anderson Oi
Richmond, Va. to be special assistants
in charge OF different features of the
program. The selection of Roscoe i.
McCulloch. former member of Congress
from Ohio, already had been announced.
Mr.. Daugherty said:
Il have been personally informed Of
every step taken In these cases AMI
have either given or approved every
order or action taken in them. l shall
continue In charge of the new bureau. or
division, to be known as the war con-
f,-ac ctC Inn Tha xpnrtx Of l.
eating and collecting evidence in the So
called war contract cases has been car
ried on under my direction. with the d3
sistance of the regular force in the de-
partment ever since / became Attorney.
General.
"It is not until the audit comes from
the department where the matter orig
mated that the Department Of Justice
has any Jurisdiction in the premises
This department has no right TO 20 TO
any other department of the Govern
ment and examine and audit either its
books or it's claims Such claims. how
ever. as have come to this department
during the last year have received i'm
mediate attention and either been sent
to the proper United States Attorney for
appropriate action or they have been
turned over to the investigate bu
reau of this department with directions
to gather all available evidence to tnf
end that such actions. criminal or civil.
as the facts justify. might he begun.
In 70 the present time u has been pos
sible for the department to make all the
preliminary Investigations essential 10
the preparation of these cases with its
regular force No additional appropria-
tions were required for this work. which
has been In progress more than a year.
The poin. has been reached now where
n Is necessary 20 have an additional
corps of experienced attorneys and audit
ors''
Mig salary snvfnH.
The Department of Justice statement
outlining the program for prosecuting
the war grafters. after declaring that
some OF the cases will be ready soon
FOR presentation to the Grand Jury.
made a strong point of the fact that
Mr. Daugherty will take personal
charge. thereby saving a large salary
otherwise necessary for n directing at
torney. The Department said:
.Tpstead OF employing one special AS
sistant Attorney General at salary
upon which Congress has placed no
limitation. the Attorney General will
himself direct the work. He has de-
cided the work would probably proceed
ton ns the Attorney-General of the
United States with number of dis
tlngulshed lawyers from all parts of the
country selected for their special fitness
for the posts working under him.
"Under this plan the Attorney General
will use the salary OF perhaps 81. .OO) or
$4,000 year which otherwise might
have been paid In 'he actual prosecution
Of the cases. This determination
means that all OF the principal as
sociates employed in this case will re-
ceive a salary OF oniy $4,000 per annuni
Those whom the Acknowledgement has
already selected are men whose incom -
in private practice are probably five
times as large as the amounts they Will
receive for the conspicuous service tn y
will render TO the Government and the
people.
Those cases in which the venue falls
within the District Of Columbia win be
Continued on Page Six.