The Washington times., 1922-05-13
AIDED
BY LE 7 TER
.0F HUGHES,
is CHARGE
War Secretary Said to Have
Got Private Opinion on
Legality of Deal.
BY Cosmopolitan News Service.


An informal legal opinion rem
dered by Secretary of State Hughes
to his friend. Secretary of War
Weeks, declaring the sale of ths
Bosch Magnetic Company plant
to Martin Kern, alleged German
alien and ex-convics, was a valid
one, was used to boost sales by
the firm of Hornblower & Weekss'
Of New York and Boston. which
floated the bonds of kern's organi-
Zation, according to new disclosures
today in the war fraud scandal.
In Ignorance Of Details.
Secretary Hughes did not know
of KeFn's record when he rendered
the opinion or of other transactions
since revealed, 1t is stated. Secre.
tary Weeks. II is charged, asked
him for the opinion, as one friend
to another.
After Secretary Hughes had de-
clared the Bosch sale by the Gov.
ernment valid on examination Of
papers laid before him, Secretary
Weeks, II is charged, had the opin.
ion dictated to a stenographer and.
without Mr.. Hughes knowledge, Il
was used widely by statesmen OF
Hornblower & Weeks to promote
the sale OF the bonds and stocks of
kern's organization, the American
Bosch Company, II is claimed.
Secretary Weeks was an active
member Of Hornblower & Weeks
before he entered the Cabinet and
at the time OF the alleged fraudu.
lent transactions connected with
the sale of the Bosch property to
Kern.
"One Of the chief actors In these
transactions was the firm Of Horn
blower q Weeks, banking and
brokerage house in New York and
Boston," Congressman Woodruff Of
Michigan declared In the House.
Million, Estimated Profit.
"It appears from information oh.
tanned from reliable sources and from
figures taken from the books Of the
American Bosch Magnetic Company
that the profit realized by the firm
Of Hornblower & Weeks was prob
ably 81 .000, 900 or more, and that
the profits which Mr.. Kern realized
ran to many hundreds OF thousands
Of dollars"
Woodruff charges that Kern, after
the expose OF his deal with the Gov.
ernment in which former Attorney
General Palmer and Francis Garvan,
alien custodian during Palmer's ad
ministration, were involved. wrote
in a letter froa Paris to one of his
attorneys: "Why don't Murray and
all interests take John w. Weeks TO
Daugherty and put n quietus TO this
things"
The Murray he refers TO was one
OF the men who was assoc lated with
him in a deal and who afterward be.
came president Of the American
Bosch Magnetic Company Woodruff
said.
Wanted Inquiry Dropped.
THE other gentlemen he reforr ed
| TO are, respectively. the Secretary Of
War and the Attorney General, and
the thing upon which he wished u
quietus was the agitation in The
public press for criminal prosecution
by the Department Of Justice in Con'
nection with the matter"
The war fraud scandal will he q
political issue II Congress refuses 20
call special investigation. Wood.
ruff, Republican. declared today.
He announced that -hr granting
OF an appropriation of $500, 900 asked
by Attorney General Daugherty
to facilitate the work .: Investigate
ing war frauds by The Department
Of Justice will causc no let.up in
the efforts to secure n Congress
sional investigation.
I'VE want to make sure that all
the facts come out this time"
Woodruff said