The Oakley herald. [volume] (Oakley, Idaho) 1908-1961, 1922-04-21
GRAFT IN WAR IS
CHARGE NOW MADE
DEALS WHICH ROBBED TAxPAY.
Frs OF MILLIONS ALLEGED
BY TWO REPRESENTATIVES
Republican House Members Make
Sensational Allegations InvoIv-
Ing Many Former Federal
Officers of Participating

Wnshington.-The American people
were robbed Of hundreds OF million.
OF dollars through fraudulent con
tracts made by the government during
the war, Representatives John. South
Dakota, and Woodruff, Michigan
lWeps.). charged In the house Tues
day. They demanded congressional
investigation and prosecution of the
guilty persons by the department OF
Justice.
They introduced a joint resolution
calling for the appointment of com
mittee of fifteen members to probe all
contracts made by the government
during the war. Woodruff, in q
speech. cited numerous specific in
stances" where. he charged, the gov
eminent had been defrauded of nail-
lions of dollars In war contracts.
zone 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 Hornblower &
Weeks ''profited to the extent of ST.
100000 or more"
ION December 81, 1919" Woodruff
said, 1.-The capital stock of the Bosch
Magnetic company was sold by the
alien property custodian to Martin e.
Kern for S4,15O.000. Kern was close
neranna1 f,iand opt rifapf ~ Mr. palm,
err" "a. B. Palmer, alien property Gus
todian at the time of the sale-)
1T appears that Mr. Kern was not
al American citizen, but was Of Ger.
man birth and citizenship. 1t would
seem that he also served three terms
in prison In New York state for fell
ony, and I 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 a felony would deprive him of his
civil rights. The trading with the
enemy act prohibits the sale OF prop
erty TO other than American citizens
The sale to Kern was in direct vio-
lation of the act. No pros ecutions have
yet occurred.
Shortly after the property was sold
TO Kern a corporation called the
American Bosch Magnetic company
was organized. One Of the chief actors
in these transactions was the firm OF
Hornsbiower & Weeks. 1t appears.
from information obtained from re-
liable sources, that the profits realized
by the firm Of Hornblower & Weeks
in this transaction was probably ST.
100000 or more, and that the profits
of Kern amounted to many hundreds
of thousands Of dollars.
Woodruff displayed what he alleged
were copies of letters which he safe
Kern had written from Europe recent
ly In an effort to "hush up agitation
for prosecution In the Bosch Magnetic
sale.
Woodruff quoted one of the letters
rs saying, ~Why don't Murray and all
interests take John w. Weeks to
and put a quietus on this
Woodruff said, is the former president
Of the Bosch Magnetic company.
Following Woodruff. Johnson took
the floor and also attacked alleged
fraudulent war contracts and sales.
Johnson charged that there is IAN in
visible bi-party government in the
United Stetes which controls the real
elected by the people.