Iron County record. [volume] (Cedar City, Utah) 1893-1982, 1922-04-21
CRAFT IN WAR IS
CHARGE NOW MADE
DEALS WHICH ROBBED TAxPAY.
ERS OF MILLIONS ALLEGED
BY TWO REPRESENTATIVES,
Republican House Members Make
Sensational Allegations invelv-
Inc Many Former Federal
Officers Of Participating

Washlngton.-The American people
we're robbed Of hundreds of millions
Il dollars through fraudulent con-
racts made by the government during
he war. Representatives John. South
,akota. and Woodruff. Michigan
Reps.). charged In the house Tues.
Jay. They demanded congressional
Investigation and prosecution Of the
utility persons by the department Of
Justice.
They introduced joint resolution
alllng for the appointment Of COM
hlttee Of fifteen members to probe all
Ontracts made by the government
turing the war. Woodruff, In a
speech, cited numerous specific in
stances" where. he charged, the gov
ernment had been defrauded of mil
lions of dollars In war contracts.
"one of the biggest of the alleged
illegal deals was the sale of the stock
II the Bosch Magnetic company, seized
ny the alien property custodian dur
ng the war. Under this sale. Wood
,uff charged, the New York and Bos.
,on brokerage firm of Hornblower h
eeks ''profired to the extent Of ST..
10000 or more"
ION December 81, 1912" Woodruff
aid, "the capital stock of the Bosch
lagneto company was sold by the
ilien property custodian to Martin Il.
.iern for $4.150.000. Kern was close
PERSONAL friend and client of Mr.. Palm
er." "a. b. Palmer, alien property Gus
Iodian at the time of the sale.)
1T appears that Mr.. Kern was not
an American citizen, but was OF Ger.
nan birth and citizenship. 1t would
seem that he also served three terms
IL prison In New York state for feel.
my. and l hold in my hand copies of
rs photograph appearing in the
ogues' gallery in New York City.
Apart from the fact that Kern was
lot an American citizen, his conviction
n felony would deprive him of his
ivll rights. The trading with the
nemy act prohibits the sale of prop
rty TO other than American citizens.
The sale to Kern was in direct vio-
alton of the act. No prosecutions have
'et occurred.
Shortly after the property was sold
D Kern corporation called the
american Bosch Magnetic company
vas organized. One OF the chief actors
n these transactions was the firm OF
Iornsblower K Weeks. II appears
rom Information obtained from re
able sources. that the profits realized
y the firm of Hornblower & Weeks
n this transaction was probably ST.,
10000 or more, and that the profits
4 Kern amounted to many hundreds
# thousands of dollars.
Woodruff displayed what he alleged
'ere copies OF letters which he said
FERN had written from Europe recent
in an effort to "hush up" agitation
or prosecution in the Bosch Magnetic
'ompany sale.
Woodruff quoted one of the letters
8 saying, "Why don't Murray and al
interests take John w. Weeks u
Daugherty and put quletus on this
Woodruff said, Is the former president
Il the Bosch Magnetic company.
Following Woodruff. Johnson tool
The floor and also attacked ALLEGED
fraudulent war contracts and sales
Johnson charged tina. here is ian IN
lslble bl-party government In the
United States which controls the rea
government elected by the people.