Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-05-29
NAME AID FOR
|! WAR CONTRACT
FRAUDCASES
Former Senator to Help
Daugherty Prosecute
PrOfiteers. e
Special to Indiana Daily Times

Special to Indiana Daily Times
and Philadelphia Public Ledger
WASHINGTON, May disappointment
of prominent Democrat, former United
States Senator Charles S. Thomas OF
Colorado, as a special assistant to the At
torney General, to assist in prosecution
OF war contracttcaseS, was announced this
AFTERNOON by Attorney General Daugherty.
Selection of Senator Thomas q former
member Of the Democratic national COM
mittee and temporary chairman of the
Democratic national convention in Kansas
City in 1900, is regarded in Washington
as lending final non bipartisan touch to
the body IF men Mr.. Daugherty is gath
ering around him to bring to justice the
contractors accused of overcharging their
Government though the stress of war.
The Attorney General, in answer to re-
cent charges in the House of Representa-
ttves that war contractors with infuen-
tial political support were receiving lem
lent treatment at his hands, frequently
Las stated that partisan pressure would
play no Tart in tae prosecution Of the
fraud cases once the feeble organization
Inherited from the wilson Administration
was moded into workable form.
Senator Thomas was in Intimate contact
With war contract Investigation while IN
the Senate, being particularly interested
in aircraft inquiries. A statement made
public today at the Department Of Justice
announces acceptance Of Senator Thomas,
and adds
Senator Thomos will bring to the De-
partment an unusual and an exact expert
ence in precisely those matters which Will
come before him In his new capacity, some
! Of the most important phases OF his work
| in the Senate having dealt with these
matters in some Of their aspects"
Because Of the additional Federal Grand
! July recently impaneled in the District
Of Columbia, the jurisdiction in which
most Of the alleged illegal transactions
were made, Mr.. Daugherty has selected
George z. Hoover, Washington attorney,
rs a special assistant TO cooperate with
| Maj. Peyton Gordon, the United States
| District Attorney here
The Attorney General, who has laid
emphasis on the necessity for lawyers OF
extraordinary ability because Of the high
priced legal talent Of the contractors they
/ will be compelled to meet, explained in
the statement that Major Gordon will
handle the criminal eases and Mr.. Hoover
The civil suits to recover against eontrac-
tors whom it is presumed were overpaid
/ innoceutiy. Assistant Attorney General
Grim, who has been studying the cases for
months it was stated, also VIII particle
pate III the work.
Making public in some detail the man
ner in which the cases will be handled,
/ the Department OF Justice statement con-
tinUes:
1T is proposed by Attorney General
! lausheTty III effect to create special
tribunal within the Department of
It,sf jab WITH ~ ~
review. In reaching decisions as to pro-
ceeding with eases Of abandoning the
! claims, the Government will proceed only
ii those cases in which it has reason
able expectation Of winning. in order that
no excessive cost OF litigation may be
| incurred. 1t IS the intention Of the De-
/ rartlnent to reduce litigation as much
| as possible, to prepare Sll the cases as
'horoughIy as possible, and to expedite
the business. The preparation Of the
cases Will, of course, be exceedingly ina
port2nt as the department naturally
realizes the Government will have arrayed
/ against it some Of the greatest lawyers
! ia the United States.
Senator Thomas will sit with the at
! torney general on this tribunal or board
/ Of review. together with such other
/ special counsel as have been or may be
/ employed in the different cases as they
| come up for consideration, SO there will
be at al! times a complete and thorough
Capitalization If departmental knowledge
/ with respect 10 every step that Is taken
or is contemplated in the preparation Of
these war contract cases. All of the
| criminal cases will be most carefully pre-
/ pared and discussed before this board
| from tie point Of view of the probability
/ or conviction.
Senator Thomas will begin his serv-
| lees with The department June L."
The statement reviews the work of
| Senator Thomas, in conducting. as
| chairman of a subcommittee OF the
| Senate Military Affairs Committee. a sep
| arate investigation of aircraft produce
| tioh an inquiry in which Senator's Frel-
| inshuySen of New Jersey. Reed Of Mis-
souri,. Hoke Smith Of Georgia, ana New
| Of Indiana were associated. 1t also
| recalls number of nationally known
eases conducted by Mr.. Hoover
Opponents of the congressional tnyes-
| tigatiou of the Attorney Generals pro-
cedure in the war eases, proposed in the
| Woodruff resolution, are expecting the
rules committee to reverse its action OF
May 3, by voting next Thursday not to
report the measure. The committee
voted to ), to report the resolution May
3. but some of its supporters, since Mr..
Daugherty's announcements OF speedy
prosecutions have become convinced the
proposed inquiry, under those circum-
stances, would hamper the efforts OF the
| Department Of Justice.
Chairman Campbell, who has held the
resolution III his pocket since that time,
defying a rapid fire of criticism, is ex-
Il ~ 4AYn hot no 81
consider its action of May at the regu-
lar session Thursday. Mr.. Campbell
voted for the report previously. An adj
ditional negative vote, it is predicted,
will be recorded Thursday by Represen-
tatiye SchaIl Of Minnesota, whom oppon-
ents Of the investigation are stating now
believes it would be an obstacle TO rapid