The Lehi sun. [volume] (Lehi, Utah) 1913-1949, 1922-04-13
GRAFT IN WAR IS
CHARGE NUW MADE
DEALS WHICH ROBBED TAxPAN
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 congressional
Investigation and prosecution OF the
guilty persons by the department OF
justice.
They introduced Joint resolution
calling for the appointment OF a com!
mittee OF fifteen members TO probe all
contracts made by the government
during the war. Woodruff, in a
speech, cited numerous specific In
stances where, he charged, the gov
eminent had been defrauded OF mil
lions of dollars In war contracts.
cone of the biggest OF the alleged
Illegal deals was the sale of the stock
OF the Bosch Magnetic company, seized
by the allen property custodian dur
ing the war. Under this sale, Wood
ruff charged, the New York and Bos-
ton brokerage firm OF Hoinblower 4
Weeks ''profited TO the extent OF ST.
100000 on more"
ION December 81, 1919" Woodruff
said, "the capital stock OF the Bosch
Magnetic company was sold by the
allen property custodian to Martin E.
Kern for S4,l50,O0O. Kern was Il close
personal friend and client OF Mr.. Palm
err" CA. u. Palmer, allen properly 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. II would
seem that he also served three terms
In prison In New York state for fell
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 felony would deprive him OF his
civil rights. The trading with the
enemy act prohibits tic sale of prop
ritz TO other than American citizens.
The sale to Kern was in direct yio-
latlon of the act. No prosecutions have
set occurred.
shortly after lie property was sold
TO Kern corporation called the
American Bosch Magnetic company
was organized. One OF the chief ncio.'s
IN these transactions was the firm OF
iIornsblJwer q Weeks. Il appears,
from information obtained from re-
liable sources, that the profits realized
by the firm Of Hornblower e. Weeks
In this transaction was probably ST.
100000 or more. and that the profits
~ Kern amounted TO many hundreds
of thousands OF dollars.
Woodruff displayed what he alleged
were copies OF letters which he said
Nern had written from Europe recent
ly In an effort to 'hush up" ugitntlon
lor prosecution In the Bosch Magnetic
company sale.
Woodruff quoted one Of the letters
snying, "Why don't Murray and all
.terests take John w. Wees 20
r,ugherty and put quletus on this
oodruff said is the former president
Z tile BOSCH Magnetic company.
Following Woodruff, johnson toak
ne floor and also attacked alleged
rnudulont war contracts and sales.
Johnson charged that there Is Fan In
isible bi-party government IA rne
United States which controls the real
al 10