The Meridian times. (Meridian, Idaho) 1909-1938, 1922-04-21
GRAFT IN WAR IS
CHARGE NOW MADE
DEALS WHICH ROBBED TAxPAY.
ERs OF MILLIONS ALLEGED
BY TWO REPRESENTATIVES
Republican House Members Make
Sensational Allegations lnvolv-
ing Many Former Federal
Officers Of Participating

Washington.--The American people
were robbed of hundreds Of millions
of dollars through fraudulent con-
tracts made by the government during
the war, Representatives John, South
Dakota, and Woodruff, Michigan
(Reps), charged In the house Tues
day. They demanded a congressional
investigation and prosecution of the
guilty persons by the department Of
justice.
They introduced q joint resolution
calling for the appointment of COM
mittee of fifteen members to probe all
contracts made by the government
during the war. Woodruff, in q
speech, cited numerous specific in
stances" where, he charged, the gov
eminent had been defrauded of mil
lions of dollars in war contracts.
"0ne of the biggest of the alleged
Illegal deals was the sale of the stock
of the Bosch Magnetic company, seized
by the alien property custodian dur
ing the war. Under this sale, Wood
ruff charged, the New York and Bos.
ton brokerage firm of Hornblower &
Weeks ''profited to the extent of ST..
100000 or MORE"
ION December 81, 1915" Woodruff
said, "the capital stock of the Bosch
Magnetic company was sold by the
alien property custodian to Martin E.
Kern for $4,150,000. Kern was a close
personal friend and client of Mr.. Palm
err" "a. B. Palmer alien property Gus.
todian at the time of the sale.)
ut appears that Mr.. Kern was not
an American citizen, but was of Ger.
man birth and citizenship. It would
seem that he also served three terms
in prison in New York state for fel.
ony' and hold in my hand copies of
his photograph appearing in the
rogues' gallery in New York City.
/ Apart from the fact that Kern was
not an American citizen, his conviction
OF a felony would deprive him Of his
civi rights. The trading with the
enemy act prohibits the sale Of prom,
erty to other than American citizens
The sale to Kern was in direct vic.
iation OF the act. No prosecutions have
yet occurred.
Shortly after the property was so,d
to Kern a corporation called the
American Bosch Magnetic comnon,
was organized. One of the chief motor,
IN these transactions was the Arm Il
Hornsbtower & Weeks. It annaar.
from Information obtained from =
haoie sources, that the profits realizet
oy the hrm of HorubIower 4 lyeoI,
IN this transaction was probable q
WoOoo or more, and that the nrofit,
OF Kern amounted to many hundred
OF thousands of dollars.
Woodruff displayed whit he a,,o..,
We're copies of letters which no e., e.,
hern had written from Europe racen,
" IN an effort to "hush upn aplt.tia,
Tor prosecution in the Bosch MAJ,
company sale. =
Woodruff quoted one of The ,o..
=" =. saving why don't Murray and :,
interests take John w w. ~
Wausherty and put quietus on mi
Moodratf said, is the former PRESIDE
OF the Bosch Magnetic company.
foilowing Woodruff. johnson 10,
.ae noor and also ATTACKED a,,s ~
fraudulent war contracts and ~,
Johnson charged that there !, 49,, ie J.
visible bi-party government, ~ - =
United States which control. =. - U
. government elected By tbs a. ,ns re'
T. l