The Washington times., 1922-05-11
SHIELDING
OFCR0OKS
CHARGED
IN HOUSE
War Secretary Said to Have
Blocked Prosecution of
Airplane Graft.
by Cosmopolitan News Service.

The name of Secretary of War
Weeks appeared in a new chapter
of the war graft scandal today
through statement of Con-
gresham Woodruff (Rep.) Of
Michigan that the case of the
Wright Martin Aircraft Corpora
ton, involving approximately &c.
100000 overpayments by the Gov
ernment, was taken out of the
hands of the United State Attor-
ney in New York at the request
of Secretary Weeks.
Challenges DauGherty.
Congressman Woodward made the
charge in challenge of Attorney
General Daugherty's statement in
his letter to the President that the
Department of Justice was proceed.
ing regularly on war graft cases.
According to charges which have
been placed on record in Congress
and which. it is said, will be sup.
ported by further evidence. Secre-
tary of War Weeks attempted TO
delay action" on the Wright Martin
case, which lis declared to involve
flagrant frauds. through activities
OF Charles Hayden. a director OF
the accused company.
---A--fffeftofHnuum placed on record,
written by Assistant Secretary OF
War j. NJ. wainwright to Secretary
Weeks shows that the former re-
ported the case to be beyond the
jurisdiction of the War Department.
After the case was withdrawn from
the hands of the United States At
torney at the alleged request OF
Secretary Weeks, further hearings
were given. II is charged. and no
suit was brought although every
hearing was decided ip favor Of the
business OF the Governments claims.
Evidence Called Amazing.
The documentary evidence in the
case. according to Woodruff. pre-
sents some of the most amazing
feature OF any war contract aud
tied by the Government investiga.
tors,
The charges laid before Congress
involves Thomas l.. Chadbourne
prominent lawyer OF New York,
financier and Democrat. who fig
ured conspicuously in the Wilson
Administration.
A memorandum written March
IS TO Assistant Attorney General
Goff, who is in general charge OF
the investigation OF war fraud
cases. recommended that the facts
involving Chadbourne. a director OF
the Wright Martin Company, and
the other members of his law firm,
Chadbourne, Babbitt & Wallace, be
laid before the grievance commit
tee OF the New York Bar Associa-
ton, at that time investigating
Chadbourne's conduct following dis
barment proceedings in connection
with other matters.
These men referring to Chad
bourne and his two law partners),
while benefiCiaries of. Government
fees, have stood by and permitted
the Government to he defrauded,
II not actually participating in the
frauds" says the memorandum
written by II. L. Scaife, then one
OF the Department of Justice war
contract investigators
The minutes of the company at
the time it was negotiating for a
Government contract, stated that
an "S per cent profit was a proper
profit to the company on the Gov.
erpment contract"
Profits 2SO Per Cent.
The report of the Government
auuiN SNdNtS tlAl NhS DIOlllS dClu-
ally charged and collected amounted
to 270 per cent.
1t was disclosed, according to the
information laid before Congress,
that the company. after it's contract
with the Government was termi-
mated, proceeded to buy back from
the Government certain property.
One voucher produced covered the
sale of semi. finished tools and work
in processI For the sum OF S2i..
379.37 the Wright Martin Company
paid the Government for the mate.
rials involved which it had sold to
the Government for $792 ,S65.03.
Another voucher showed special
tools and patterns which the com.
pany sold to the Government for
something over 81 100000 IT bought
back for $10,642 "a.
Thomas l.. Chadbourne's firm,
Chadbourne, Babbitt & Wallace. at.
torneys for the company, collected
from the Government $23 an hour,
the records show, when on company's
business.
The company. II is charged. took
advantage OF the Governments neces.
stiles and forced II into a Cost.plus
contract.
Items from accounts which were
paid Chadbourne and his law part.
ners show that they were compen.
stated by the Government for services
rendered the company in changing itE