Evening star., 1922-07-12
WAR FRAUD CASES
TO. Be. .SPEEDED
Dye Patent Probe Not to
Sidetrack Other In
vestigations.
BY the Associated Press.

| ny tue <absOcldteu fress.
Investigation by the special federal
war frauds grand jury of the sale OF
! hundreds of German dye patents by
j the alien property custodian in 1919
to the Chemical Foundation. Inc. is
| expected to be carried on concur
| rent1y with other important cases
already. taken up by the grand jury,
1t was said today.
The dye patent sale case. which
was opened yesterday with the ap-
pearance of Francis p. Gawan, GUS
todian when the sale, was consum-
| mated, ands now president of the
purchasing company, was declared
lauthoritativefy. TO be the first step In
a sweeping inquiry Into, the entire
its inception. =, Is
Mr.. Garvan. refusing to open the
records of the company to. Assistant
Attorney General Grim. as representa-
tive of the Department OF Justice.
said he had offered the entire record
to the grand jury His charge that
"Germanic influence" was behind the
move to force return of the patents
to the government brought a formal
denial from Attorney General Daugh-
erty and a statement that every
American interest In those holdings
would be protected.
Lumber Case Soon.
The government was said today
practically to have completed presen-
tation of the lumber case to the grand
fury. whose findings were expected
within a few days. The so-called
"Old Hickory" case. followed by the
aviation contracts cases. will be pre-
scented. according to present plans. as
soon as the lumber case is out of the
way. AS a means Of expediting work
of the war frauds investigation. these
| cases will be ;nterspersed with, frst.
| the Chemical Foundation and then
other allen property matters, it was
said.
The governments present program
was said to contemplate occupation of
the grand jury through July and Au-
gust with the "Old Hickory" aviation
and Chemical Foundation cases. and
then to proceed with the other alien
present grand jury expires in Octo-
Der.
Determination to investigate all
acts of the alien property custodian's
Office was said to have been reached
last week. and after the Presidents
Miller to proceed against the Chemi-
cal Foundation for the return of the
former enemy y-owned patents
This decision was said to have been
actuated by a desire on the part OF
the administration to have "the only
qualified body"-a grand jury-pass
on the subject of alien property, as
the best means Of clearing up the sit
uation which has been a point of at
tack from Congress. the press and
public
No Indictments Urged
The grand jury investigation does
not mean 1t was emphasized, that the
Department of Justice has been CON
WINGED itself that fraud or criminality
has been disclosed. No indictments
will be asked Of officials high in the
last administration sor others unless
the grand jury is convinced beyond
a doubt that indictments are warrant
that convictions might reasonably be
i expected. administration officials said.
The entire question was said to be
"up to the grand jury" and officials
declared they hoped that for the
sake of the country's honor" no occa-
sion would be found for any indict-
ments which might besmirch not only
officials OF the last administration but
the government itself.
1t was also emphasized that it was
entirely possible acts of the alien
property custodian with reference to
former enemy property might have
gone beyond the law without being
necessarily criminal. but rather a
mistaken judgment concerning au-
thority and in the stress of wartime
conditions. Return of the property
to the present custodian, it was said.
ocf n
interests and those of the Germans as