Shoshone journal. [volume] (Shoshone, Idaho) 1884-1931, 1922-04-14
GRAFT IN WAR IS
CHARGE NOW MADE
DEALS WHICH ROBBED TAxPAY.
ERS OF MILLIONS ALLEGED
BY TWO REPRESENTATIVES
Republican House Members Make
Sensational Allegations invoIv-
Ing Many Former Federal
Officers of Participating

WashingtOn-rh American people
were robbed of hundreds OF millions
of dollars through fraudulent con-
tracts made by the government during
the war; Representatives John. South
Dakota, and Woodruff, Michigan
(Reps.), charged in the house Tues
day. They demanded a congressional
investigation and prosecution Of the
guilty persons by the department Of
justice.
They introduced 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 a
speech, cited numerous specific in
stances" where, he charged, the gov
eminent had been defrauded of mil
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 alien 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.
5000 or more"
ION December 81, 1919" Woodruff |
said, "the capital stock of the Bosch |
Magnetic company was sold by the
alien property custodian to Martin 4.
Kern for 81, 10000. Kern was a close
friend and client of Mr. Palm
err" "a. B. Palmer, alien property Gus
todian at the time of the sale.)
1T appears that Mr.. Kern was not
IN American citizen, but was of Ger.
nan birth and citizenship. 1t would
'eem that he also served three terms
n prison in New York state for fell
my, and l hold in my hand copies of
lis photograph appearing in the
ogues' gallery in New York City.
Apart from the fact that Kern was
ot an American citizen, his conviction
felony would deprive him of his
lvil rights. The trading with the
nemy act prohibits the sale of prop :
rty 10 other than American citizens.
he sale to Kern was in direct vio-
tion of the act. No prosecutions have
ct occurred.
Shortly after the property was sold l
Kern a corporation called the
npTiNon Rncob
as organized. One of the chief actors {
these transactions was the firm of -
& Weeks. 1t appears.
I'm information obtained from re- ,
bic sources, that the profits realized -
the firm of Hornblower & Weeks y
this transaction was probably ST. "
JOO0 or more, and that the profits OF
Kern amounted to many hundreds d
thousands of dollars. Ii
Woodruff displayed what he alleged f
re copies of letters which he said
IN had written from Europe recent CT
In an effort to "hush up" agitation Fl
prosecution In the Bosch Magnetic r.
npany sale
woodruff quoted one Of the letters -,
saying, "Why don't Murray and all =.
erests take John W Weeks to u
ugherty and put quietus on this ~
'odruff said, is the former president III
the Bosch Magnetic company. SIC
following Woodruff, Johnson took arr
fioor and also attacked alleged thu
udulent war contracts and sales is
lnson charged that there is IAN in. ha
lDie bi-party government IN rne CO.
ited states which controls the rea an
'ernment elected by the people. w