New-York tribune., 1922-11-25
VI. s. Sues for
20 Million i'm
Carrn, Frauds
ar.1'ime Contractors Ac.
clsed of Violating T'russ
i'm Building Upton, Sher-
man, Jackson and Funston
More Charges Pending
Governments Expects to Re-
cover About rs Million;
Daugherty Pushing Cases


WASHINGTON, Nov. 2A.--Civii suits
to recover more than $2o,00o,000, al
legged by the government to have been
fraudulently expended In the construc-
tion Of Camps Upton. Jackson, shsr-
man and Funston, were instituted to-
day by the Department Of Justice
against the contractors who were In
charge Of each project.
The suits were said in official cir
cles to be the initial step in CAM
paign at law against wartime con-
tractors who We're suspected, on the
basis Of auditors reports, to have gone
beyond the intent and purpose OF the
authority given them by Federal de-
partments.
Additional actions are In prospect
1t was said at the Departr .ent of JUS
tice, as soon as complete reports have
been made by the special force of audi
tors which has been engaged for fif~
teen months in a nanalysis Of ccnstruc-
tion records.
Whether criminal action would be
taken in any case, It was said, wodld
depend, to q degree, upon the results
of the civil suits. Unofhcial estimates
place the total which might be ex-
pected to be recovered from all the
construction cases at between $70,000,-
600 and $80,0o0,000.
In the cases filed to-day the govern
ment alleged that the hardware con-
tracing company spent an excess of
$6,600,000 in building Camp Jackson
S. c.; the Thompson-Starrett company,
$6,000000 at Camp Upton, N. Y; A.
Bentley & Sons Company, $5,000,000
at Camp Sherman, Ohio, and George
A. Fuller & Co., $4,000 900 at Fort
Riley, Kan. The suits were fled at
Charleston, S. c.; Brooklyn, N. X;
Columbus, Ohio. and Topeka, KAN, re-
spectively.
Identical bills Of complaint were laid
being that the contractor violated
"a direct and intimate relationship Of
trust and confidence" in executing his
contract, while it was impossible, be-
cause Of the existing war emergency,
for the government to exercise norm al
supervision and inspection of the
work. AS a result, IL is alleged, the
contractor stands indebted TO the gov
ernment for money in the sums set
forth and for great quantities of ma
terial, declared to have been purchased
on government credit and misused.
The bill fled against the Bentley
company at Columbus charged there
was "great and uncomfortable waste"
Of the materials purchased for Camp
Sherman, and that the contractor "sold
to and also purchased and resold to
the defendant at profit much ma
teriaI that was not needed In the
project. Further charges were made
that large amounts of useless and
unnecessary work was done
In such manner that construction was
- q n r.A hat q
without reference to skill, experience
or other capacity" were paid the same
scale Of wages az skilled workmen
and artisans.
AS a. result Of delay in compilation
OF Camp Sherman, the government al
legged, the cost was not only enhanced.
but sickness and death Of some SOL
diers" followed.
Charges Of mismanagement against
this contractor included also accusa-
slons that he permitted continual
ioafing, misdirection of effort and sa-
botage, permitted, advised and
caused large quantities of lumber, ce-
ments hardware, tools and other ma
terials and equipment to be DESTROYED. %
and that portions Of the project were
subiet to other parties and the cost
added to the bills submitted to the
government.
Attorney General Daugherty said
every means would be used to hasten
the trial of the four suits.
The amounts sued for" he said.
represent what those who have been
continuously engaged in the work of
investigation and preparation believe
conservativeiy the government ought
10 recover. What should be recovered
WI! now be matter for the courts to
The. suits represent work on the
part of the, Department Of .Tnst;cs
which was begun about fifteen month =
ago. The work could not have been
completed any earlier than it has
Mr.. Daugherty declined TO discuss
the additional cases, which were "a.
ported to be In prospect. Study of war
contracts--of which there were several
hundred thousand-will be carried for.
ward, he said, and action taken in each
case as the facts seem to warrant.
Fuller Company Denies Charges
CHICAGO, Nov. 24.-E. s. Belden.
yice-president of George M. Fuller &
Co., contractors, when told to-dav the
government had brought suit against M
primary contractors in the construc~
tlon OF various army cantonments, and
had sued the Fuller company for
S4.o00,000 in connection with the con-
struction of Camp Funston, Kansas.
denied the charges, but said he knew
nothing of the governments action and
could not understand on what it was
based. Although it was said at Wash.
ington that Camp Funston cost over
$f1, 100000, Mr.. Belden said his COM
pany had received less than SS000,Oo0.
2
ThOn npsOn-Starrete Co. lis