New-York tribune., 1922-06-01
Jury Probe of
w ar Contracts
Is Under WAY
Lumber Disposal by Quar-
iermaster Corps First Case
Presented by Prosecutor
TO " a hington Body
Secrecy Order Enforced
Daughcriy Confcrs With Ex-
Gov. Dcneen of Illinois
and House Inquiry Head

WASHINGTON. May ~ By Tho As
sociatcd Prcssl.-lnvcsiigaiion Of the
so-cailed war frauds cases began to-
day before special Federal grand
jury when United states Attorney pey-
ton Gordon presented. as the first Of
tho government series Of cases dealing
with wartime contracts. that involving
disposal Of surplus lumber by the
Quartcrmnstcr Corp, Of the United
States Army.
With recess intervening the grand
jury impanclcd under recent act
of Congress. sat Tor four hours. the
dclibcration. being accompanied by
secrecy usually surrounding such pro
ccedings.
All Sworn to Secrecy
Extraordinary precautions were
taken taken 10 prevent leaks. Affor-
ney General Daughcrty announced that
~ no time during the progress % the
grand jury invcstiga'ion would le dl-
vu.gc information concerning IT'S aoiiy-
sites nor the names o. the cases pre-
senied. and Mr. Gordon declared that
all officials connected with the inquiry
were sworn 10 secrecy and that be-
could not say what case would be The
first on which the government would
ask indictments
One OF the fret acts Of the grand
jury was 90 subpoena al available pa
pers and records bearing on the lumber
eases. Witnesses we're on hand %
testify but their names were with
held
While the grand jury was sitting A.
torney General Daughcriy and his re-
Gently appointed Special Assistant At
torney General pu' 30 busy day meet
ing with the regular stan ~ d series
of conferences.
An announcement issued from 'he
Attorney General Office late in the
day disclosed that he had conferred
with Chairman Graham of the House
committee which conducted the inquiry
into war expenditures and that he
"also had conference with cX-Gov-
crnor Dcnccn o. Illinois 10 connection
with these cases
The department is not ready % This
time 90 make any further announce
mcnt boo this connection, tf" statement
added
Thomas Begins Duties
Former Senator Charles s. Thomas.
81 Colorado. Democrat. whose ap-
p0intmcuf as q gTeciai assistant 20 the
Attorney General was lnn0urcod earlier
in the week. took the oath ot ohice and
entered upon bis duties today. IL vas
aid bis duties would be large 3 tha'
o. review o. cases.
Tentative selection o. of ices Tor 'he
War contracts division cf the p"ra-
mcnt of Justice was made by ~.
Dolcnerty in the old Land 0f'ce
Building. which housed fhe Grrl' ra-
.hirery during tho war From this
building viii be directed 're eH.'' 90
urravei tho legal tangle resulting from
the nations stupcndous Wartime &C.
tivities. involving prosecution o. those
WHO night be charged with crime and
the possible recovery of millions in
money from persons against whom no
criminal action will lie. Officials CI-
pect many cases will be found where
material losses resulted % the govern
mcnt from contracts entered into By
gubordinates which we've carclessly
drawn and not through deliberate in
tcniion 20 delraud.
Legal Force Fills Forty Rooms
The departments statement said tia.
Mr. Daughorty would occupy an Office
in the land Office and that forty rooms
would be required FOR quarters for
"the lcga force which wi.l be en-
nloyed on these cases.
witnesses In these cases the
statement said. "arc not only scattered
an over tho United states but many
OF them have gone 20 foreign coun-
tries and some Of them have estab-
l.shcd themselves IN business abroad.
The department has found u neces-
sary 90 arrange 20 have certain W.T.
nesses come to Washington from the
Argentine and Brazil. TIE investiga-
tion which the Department Of Justice
has been conducting FOR months has re-
vealed the fact that many witnesses
we're killed IN the war or have died
Of disease contracted in the service