The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1922-05-12
DAUGHERTY AF TER
WAR PR0F|IEERs
Declares Government Was De-
frauded of Many Millions.
HOT DEBATE IN THE HOUSE
President Harding Transmits Attorney
Generals Reports to Congress
Many Prosecutions to
Be Started.


washington, May 10. - President
Harding transmitted to congress re-
port by Attorney General Daugherty,
announcing that wholesale pr0secu-
lions are ready to be started against
war contractors guilty of defrauding
the government sout of millions of
dollars.
The Daugherty report asserts that
evidence of criminality has been dis
closed in every one of large num-
Der" of the "more important cases. In
which investigations have been COM
pleted or are rapidly nearing compile
ton.
The aggregate possible recoveries''
in cases in which civil suits will be
instituted for recovery of unlawful
payments to contractors, the attorney
general further predicts, "would prob
ably equal $1OO,OOO,OOO."
President Harding transmitted the
report through Representative Mon
dell. Republican leader, who had it
read In the house. 1t brought
prompt reply from Representative
Woodruff, Republican of Michigan,
joint author with Representative
Johnson, Republican, of South Da-
k0ta. of the pending resolution for a
congressional Investigation Of war
frauds and the alleged laxity of the
Department Of Justice to prosecute
them.
Democrat Brings Charges.
Representative Garrett Of Tennes-
see, acting Democratic leader, fatty
charged that the purpose of the attor-
ney generals report was to head off
the Investigation He asked Mr.. Mon
dell to inform the house whether ''the
resolution, which has been favorably
reported by the rules committee, is
now dead and is not to be further
considered He added:
rs it the intention that by having
this letter read this Is to be the end
of the chapter? Our administration
never backed away from an investiga-
ton. Will yours?'
Mr.. Mondell's reply took the form
of sweeping assault on the Demo-
cratic administrations responsibility
for the "thievery" it is now sought to
punish. Representative Garner, Dem
ocrat, of Texas, tried to pin down the
Republican leader with the question !:
do you intend to pass the Wood
ruff resoution?"
Mr.. MOndell replied: Eat the proper
time and in the proper way. that ques-
ton will be answered"
In support of the charge that 1t Is
planned to block the proposed inquiry,
some of the Democratic representa-
tives pointed to the statement in
President Harding's letter Of transmit
tai that he thought the information
contained in the Daugherty report
would be helpful to the house in de-
Gliding upon its course in the matter
of the proposed investigation.
Plans Are Outlined.
LIZ his outline of the departments
plans for proceeding against unc0n-
scionable contractors who robbed the
government in time of war, Mr..
Daugherty said two cases "of first
magnitude" already are in shape for
prompt submission to the grand jury.
One of them is of nationwide scope,
the preparation of which revealed that
there were "a great many others, who
have been lurking in the shadow, in
volved in the unlawful transactions"
They will be prosecuted. A third
case, (which has received considerable
publicity" will be ready to follow pre-
sentation of the first two. Others are
to follow throughout the summer.
The attorney generals report prom
Uses sensational revelations of .infiu-
entail personages' In the Wilson adj
ministration who 'swere personally In
terested In concealing" the fraudulent
transactions which cost the govern
ment many millions. the report says.