, 1922-05-19
Concedling Frauds

IN CONNECTION with the request Of the depart
L ment of justice for an appropriation of $500, 600
to promote its investigation and prosecution of war
graft cases Attorney General Daugherty sent to the
president a letter reviewing what had been done by
the department in regard to such cases. In this letter
Mr.. Daugherty makes the startling statement that
persons high up in the Wilson administration are in
volved and the prosecutions which are to follow in the
Immediate future will disclose this fact. Mr.
Daughertys exact language follows:
1.-THE transactions out of which these cases grew
in a vast majority of instances took place during the
preceding administration. Naturally, little or nothing
was done during that administration to bring these
matters to light. AS the country will soon have reason
to know, Influential personages in the government
who had knowledge of these transactions and who
were in a position to make disclosures were personally
interested in concealing them. 1t is not to be won
dered, therefore, that upon coming into office I found
not only that practically nothing had been done in
the way of Investigating and prosecuting these Of
lenses, but that no machinery had been set up for
handling the cases in an orderly and systematic way"
The attorney general states that since his induction
into office the department has taken up and is pur-
suing the Investigation of over 200 war graft cases.
This number includes only those cases where there
is evidence of fraud; it does not include almost 200
more cases involving claims against the government
growing out of wartime operations and in which the
governments interests must be protected. The at
torney general states that this work fell upon his
department at the time when economy was being
urged all along the line and that in response to the
demand for economy he has not been able to create
an adequately equipped division within his department
for handling all of such cases. The attorney general
uSIOunceS those VINO de1raudeQ the government IN
connection with war contracts as reasonable" and
states that they should be compelled to 'disgorge their
unholy profits" The attorney general again refers
to the guilty implication Of the government officials
under the previous administration when he says ''these
crimes and offenses are all the more reprehensible
when committed or connived at by sworn officers and
employees of the government"
Mr.. Daugherty promises speedy action on some Of
the more important cases. In this connection he
states, 1.-TWO cases of the first magnitude are ready
for prompt submission. On of these is nationwide
in scope and the investigation has covered a vide
range. If this case had been presented without such
preliminary investigation the principals might posi-
bly, have been indicated and their liability to the gov
eminent in large amounts established. However, this
investigation conducted in the most careful way has
developed that a great many others who have been
full transaction. The result is that not only will the
principals and several others, in all probability, be
indicted here. but other indictments against the prin-
cipals and different groups may be expected to follow
in other parts of the county"
The attorney gSneral set forth that he has been
extremely careful in the Investigations because at
is q terrible thing to charge a citizen with robbing
his own government, and I have insisted upon the
r,ost painstaking investigation of all cases involving
charges of criminality. The Investigations in a num-
Der of more important cases have been completed, or
are rapidly nearing completion. In each instance
they disclose a sufficient indication that a crime has
been committed to warrant their being submitted to a
grand jury"