Evening star. [volume] (Washington, D.C.) 1854-1972, 1922-05-13
WARFRAUpPR0bE
MAY PAY j. s. WELL
House Committee Declares
Many Times the Cost Will
Be Recovered.


The amount the government will
recover from alleged war fraud cases
will be many times the amount
granted to defray expenses incident
propriations committee declared today
in reporting a bill carrying $500,o00
for use by the Department Of Justice
as special investigating and
prosecuting fund.
Explaining the need of money and
man assistance. Attorney General
Daugherty told the committee, as re-
vealed by printed hearings made
public today. that about 275 such
eases, ranging from several thousand
dollars to several million dollars. were
pending. and that the total amount
involved aggregated $192.o00,o00.
According to the report filed by
Chairman Madden there are pending
in the Department of Justice between
$50 and 275 cases of this class of
litigation.
"The character of these cases is
such.' the report said. that the ex-
pense of handling them is greater
than that Of any class of work the
department has to deal with, except
perhaps antitrust prosecution.
THE defendants will employ the
best legal talent that private means
be adequately prepared to meet them.
The cases are complicated. and in ad-
dition to capable counsel will require
the services of higE-grade auditors
and accountants, expert witnesses and
investigators. The number of the
t0
Justice thus far will unquestionably
increase from time to time as the
War Department progresses with the
$4,000 cases which are yet to be gone
over oy thot department.
VIII Engage Best Lawyers.
up to the present time" the re-
port says, this character Of litiga-
ton has been handled by the Depart
nent Of Justice in it's regular organ
ization. The Attorney General stated
to the appropriation committee that
the magnitude of the task has
reached the point where it is no long
er possible to carry it on with the
present funds"
Mr.. Daugherty said it was his in
tention to engage the best lawyers
fund exclusively for investigation and
prosecution of alleged fraud cases
II should say that If the work costs
$50O,000." said the Attorney General
I'VE ought to get through on $250.0O
or 100000 in attorney fees, with
their expenses added to that. and
100000 or $150.000 on account of ex-
perts and accountants, because these
three activities will comprise the
principal part of the work. 1 expect
to return to the government very
much more than this appropriation"
Rechecking of accounts. Mr..
Daugherty said, will disclose many
mistakes, and he predicted that many
Of the persons who. did business with
the government will be coming in
now."
Wants to Clean Up Work.
II think you will agree with me
that the work should be cleaned up"
he added. ut is due the people of
the country that they should know
the real story of these transactions.
The government. ISthink, will realize
a very material profit on this invest
ment. We have gotten to the point
where we are up against it for money
and men," 3
The Attorney General declared he
was mot begging for this money"
adding:
'It. is as much your responsibility
as mine. I am just giving you my
recommendations after some exps-
rience in the matter for a year and
after consultation with those under
me who are doing this work.
Representative Byrns, democrat,
Tennessee, asked Mr.. Daugherty II
he could say how many war fraud
cases were on hand in the depart
ment July 1, 1921.
81 do not know" he replied you
see, war fraud cases is hardly a
fair way to put 1t. There will be
honest disputes in regard to cases
which L do not consider fraud
cases."
The department, he explained,
found the number constantly chang
ing, as 1t received word from the
War Department that settlements
had been completed while his depart
ment was still working on the cases.
1t Is the intention OF the House to
take up the bill Monday along with
another bill urged by the Attorney
General for an additional grand Jury
in the District of Columbia for
handling such litigation. Meanwhile
there seems little disposition on the
part of the House. leaders to give
early consideration to the woodruff
Johnson resolution for Investigation
of charges of laxity In war fraud
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