The Washington times., 1922-05-06
G.0.P.T TRIES
To HAMPER
C0(JCEQ()|z
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an individual had secured an unlaw.
full profit from the Government OF
$4,000 would have assured immedi-
ate prosecution. During or imnedi-
ately after the war. disclosure of
thefts Of tens of millions OF dollars
excited mo comment.
But now the pendulum has
swung. and the public conscience
has returned. We have descended
from the heights Of wartime en-
thusiasm to the plane of reality.
Honest citizens-and the great ma
3ority of the citizens Of the United
States are honest-are paying eNor-
bitant taxes. They know those taxes
are paid to enrich profiteers. They
are dema nding, and will continue 70
demand that unlawful profits be re-
turned and that Governmental de-
partments function.
Says Public Aroused.
mo set Of men. however power
full. may successfully combat an
aroused public opinion, and public
opinion today demands clean govern
ment. II demands a recovery OF
the profits secured in the sale OF
$50, 900, 900 worth of surplus meat
for $4,000, 900: 1t demands the re-
covery of S9. 200, 900 in overpayments
to the Lincoln Motors Company; II
demands the return OF S6,OOO,OOO
overpaid to Japanese-Controlled air
craft companies in this country: II
demands the return of the 81 500, 900
In the Phillips Stephens surplus lum'
ber deal; II demands the return Of
S4.000.000 made in the sale of the
Bosch Magnetic Company. and above
all II demands return of the mil
lions involved in the sale of former
German n-owned dye patents and
formulas to the Chemical Founda-
ton"
The Phillips-Stephens surplus
lumber case was cited by Congress
man Johnson as simply typical
of the hundreds of cases of fraudls
lent war contracts and contracts
for the sale of surplus war prop
erty and the settlement of claims"
This case involved 1SS.000,000 feet
OF surplus lumber OF all varieties
the Government had on hand at
the end of the war. Phillips 4
Stephens secured a contract with
the War Department whereby for
a fixed price-"supposed to be
fixed upon commercial prices. but
In reality only fraction of them
they were to get all the soft
woods-spruce. pine, fir and hem
lock"
Tells Contract Details.
This firm then proceeded. at the
contract price, which was TO be
raid for soft wood, to take over
the other woods. consisting of hard
woods. and by reason of their ma
nipulations the Government OF the
United States has been defrauded
out OF $l,S54. .076.S4, and the price
OF lumber. at time when build
ing operations were prohibitive in
the United States because of the
high price OF lumber. was main
tained at the high war price. and
American women and children are
today homeless or at the mercy of
rent profiteers.
"Mr. Phillips. the senior member
OF the firm. Is the Republican ma
tional committeeman from Geor-
gia. Although this matter has been
common knowledge to the officials
OF the Government since the time
Of the armistice. neither civil nor
criminal proceedings have been
taken against him. although it is
clear that q lawyer OF even medi-
ocre ability could secure convic-
ton in a criminal case and make a
recovery for the Government of
81 500, ,00O."
Daugherty's Valet on Payroll.
Capt. II. l.. Scaife, former army
officer and Department of Justice
agent, who resigned and submitted to
Congressman johnson and Woodruff
much OF the information on which
they based their charges. last night
made public an open letter to At.
torney General Daugherty in which
he asked the Attorney General a
number of questions dealing with
Investigation and prosecution of war
contract frauds. and said IL M.
Daugherty does not answer the
Johnson-Woodruff charges relating
to failure to protect the Govern.
ments interests, should resign.
In the letter Captain Scaife charged
that the Attorney General has his
negro valet on the Department of
Justice payroll, and that he and
other agents OF the Bureau OF Inves.
tigation shadowed Congressman
johnson and Woodruff and tamDered
with Mr.. Woodruff's mail