Evening star., 1922-12-30
'SEvEN INDICTED
| IN S11,o)D,o)D WAR
| CONTRACT FRAUDS
Benedict CroweII, Assistant
War Secretary Under VIII
son, Among Named.
CONTRACTORS FAVORED
ON ARMY CAMPS, CHARGE
Starrett, Tuttle, Lundoff, Foster.
MacGibbons ard Mears,
Defendants.

seven men are charged with con-
spiracy to defraud the United States
IN connection with the letting OF con-
tracts for Army cantonments in in
dictments returned today by the spe-
cial war frauds grand jury It is
alleged that through them $1,000
900 was received by favored contrac-
tors
Those accused are Benedict Crowell.
assistant Secretary of War in Presi-
dent Wilson's administration and
president of the construction firm of
lCrowell-Lundoff-L Little Company; Will
liam A. Starrett, an engineer and
architect Of the firm Of Starrett and
Van Week; Morton C. Tuttle. general
! manager of the Averthaw Construc-
tion Company and acting chairman
Of the emergency construction COM
mittee of the War Department.
Clemens w. Lundoff, vice president
and general manager of the Crowell-
Lundoff- Little Co. and general man
ager of the Cleveland Construction
company. also a chairman OF tho
emergency construction committee:
Clair Foster. formerly associated with
the Thompson Starrett Company and
the George A. Fuller Company and
then holding the rank of major. Engi-
neer Corps, United States Army; John
II. McGibbons, representative of a
| bonding company. and who was as
sociated with the emergency commit
manager of Fred T Ley G. Co. and
| secretary of the emergency construc-
tion committee.
Contractors Recommended.
1t is alleged as one of the overt acts
of the supposed conspiracy that in
Washington on Armistice day, Novem-
Der IL, 1918, and thereafter up to
July l. 1919. the defendants recon-
mended contractors for and procured
the United States to be obligated for
extensive new war and military con-
struction in excess Of sS0.000.o00. OF
this amount. 1t is said. more than
$11 .000,0 went to contractors select
ed by said conspirators," who were
given such work under q cost-plus
form of contract.
Another overt act is the alleged
selection of Fred 7. Levy & Co. to
Mass, for the procurement of which
contract James A. Mears is alleged
! to have received a commission of
$4,000.
The indictment charges that the ac-
cused conceived a fraudulent scheme
the profit and benefit of their past
and future clients. employers and
friends to secure control of the ad-
minfstration of the immense emer-
gency construction program of the
United States during the war. includ-
ing the selection of contractors and
the letting of more than 500 separate
contracts including the construction
OF the sixteen National Army canton
| ments; sixteen National Guard camps:
terminals. warehouses and fortifica-
tions.
Deceit and Money Waste.
1t is alleged that some of the de-
PENDANTS, In furtherance of the al
legged conspiracy. secured appointment
as members of the emergency con-
struction committee. and through de-
ceit practiced upon and through the
misleading and overriding of respon-
sible officers Of the United States by
usurping functions of regularly con-
stituted departments of the govern
ment. caused great waste of moneys.
appropriated by Congress. and secured
unjustifiable profit and benefit to Fred
I. Ley e. Co, George A. Fuller Com
pany. Thompson-Starrett Company.
Stone e. Webster. Cleveland Construc-
ton Company and others.
Ultimate and unjustifiable financial
loss to the United States resulted, II is
alleged. from the alleged conspiracy.
During the year 1917. the Indictment
charges, the defendants recklessly
fraudulently and in disregard of the
interests of the government hindered
n los HtNa fy,ttt Las sOy, y
completion of the governments can
tonments and camp construction pro-
gram, with the inevitable great ex-
pense and loss in efficiency therefrom
and with resulting sickness and death
to its soldiers.
The defendants are also alleged to
have disregarded an act of Congress
dated May II, 1917, forbidding any
expenditure of more than $1,000 for
any building or military post without
the approval of the Secretary OF War.
and it is alleged the accused caused
expenditures running into millions of
dollars without the approval of the
Secretary.
Competition Abolished.
During April and May. 1917, the
indictment charges. the defendants
government to reject the long -estab-
lished system of letting work under
competitive bids under contract,
| which adequately safeguarded the
government, and induced these OFF,
GERS. 1t is charged, to adopt a wide
open cost-plus system, which was
largely administered by themselves.
The alleged conspirators, IL is
claimed, refused to consider various
offers made by reliable contractors
| to do any required work for the
government at less than the scale
Of fee and compensation procured by
! the alleged conspirators to be written
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