Evening star., 1922-06-05
PHILLIPS WARRANT
STILL A MYSTERY
Identity of Person Swearing
Against Lumber Dealer Re-
mains Undisclosed.

warrant for the arrest of J. Lewis
Phillips. chairman of the republican
state committee OF Georgia. sworn
| out by a person as yet unidentified
and issued by United States Commits
sioner Hit. was in the hands of q
deputy to United States Marshal
Edgar c. Snyder today The warrant
charged fraud in connection with
war contracts.
Who made the complaint on which
the warrant was issued was q ques-
tion of much interest, with some De,
partment of Justice officials of high
| responsibility declaring today the
whole thing was mystery" to
them.
Commissioner Hit said however,
he would not have issued a warrant
OF such nature upon the application
or private individual. or without
the consent of District Attorney Pey-
ton Gordon. and that certain officials
or re Department of Justice were no
do fully informed.
Asked for Marshal
A phase of the case that added to
the mystery was that, despite the
Department of Justice denials OF
States marshars Office was notified
on Saturday to send two deputy mar
shals to the Department of Justice
prepared to act in connection with
the Phillips warrant.
The district attorneys Office pro-
fessed no knowledge of the matter
and declared that the warrant was
not issued al its request.
Phillips was a member Of the firm
a contract soon after the armistice
from the government to dispose of
surplus lumber left from cantonment
and camp construction and other war
bulldlng developments, the firm hav-
ing been designated by a conference
of lumber dealers TO act as their
agent
Before House Inst April.
! The lumber cases were among those
referred to by Representative Wood
! ruff. republican. Michigan. in a
speech in the House last April. during
! which he read an official memoran-
dunn from Ernest c. Steward, III
charge Of the contract audit section
of the Army's finance department. I"
! his superior officer. setting forth tn
basis for his belief the sale of sur
7
by the Department of Justice.
The Army's surplus lumber was sold
I under contract with the government
! by a firm. Mr.. Steward charged.
; which had been appointed by rep
! resentatives of lumber interests" TO
act as their agent for the ostensibie
purpose of so regulating the disposal
I of surplus stocks of lumber then held
| by the government as not to disrup:
. or injure The transactions of the COM
/, mercial trade"
/ S1.s54.O.G still Due.
! Facts developed by the Army's
! audit, Mr.. Steward asserted. war
ranted the assumption of gross fraud
and colIusion. The value Of the lum-
! ber sold, the audit disclosed. he re-
ported. was s4697,l7l. of which the
| government received S2,Si3.095. leav-
s1,s54 .016. which he said has never
been paid.
1 Evidence and official statements
! actions" were prepared by Army ac-
partment of Justice some eight
/ months ago" according to the Stew
| ard memorandum, which was dated
March IL. 1922.
Although 5000 contracts were in
! vestigated and audited by the audit
section, MIR. Steward asserted. lit
! can be stated beyond argument that
/ the contract in question is one which
! for criminal ingenuity is surpassed
| by none"