Evening star., 1924-01-30
COURT EXONERATES
CROWELL OF FRAUD
Former Assistant War Secre-
tary's Indictment Killed.
Phillips Loses.

The government won and lost to-
day in two indictments growing out
of its prosecution of alleged fraudu-
lent transactions in connection with
construction of Army cantonments
which were the subject of decisions
bY Justice Hoehling of the District
supreme Court.
John L. Phillips, former state COM
mitteeman from Georgia, and nine
other persons indicted in February,
1922, for conspiracy to defraud the
United States through the sale of
surplus lumber from Army canton
ments, must stand trial in the Grim
Iainaf division of the District .Supreme
Court, Justice Hoehling held today
in overruling demurrers to the in
dictment.
CroweH Demurrer Sustained.
In his other decision, Justice Hoehiing
sustained demurrers to the Army can
tonment conspiracy indictment reported
December so, 1922, against Benedict
Crowell of Cleveland, Ohio, former as
sistant secretary of war in the Wilson
administration and six others charged
with defrauding the United States. by
prejudicing the orderly administration
of it's laws by it's regularly constituted
officers and agencies.
1t was alleged, in this case, that the
accused had overreached the Army en-
gineerS and attained for their friends
and former associates contracts for
Army cantonmentS without competitive
bids More han sSO,000,000 of such
contracts, it was claimed, were awarded
under the, cost-plus system.
In the Phillips case, the accused had
filed pleas in abatement because OF
the presence in the grand jury room
of a stenographer in the employ OF
the Department of Justice, which
were oyerruled last September. They
then demurred to the sufficiency of
the Indictment, which the court now
oyerrules and directs the defendants
to plead within twenty days.
Court Wfthholds Reasons.
The court does not discuss the rea-
sons underlying his opinion that the
indictment is sufficient, remarking
that he considers it necessary to do
no more than announce that the sew
eral demurrers and motions TO strike
should be overruled.
Those indicted with Mr.. Phillips are
Ernest C. Morse of New York, for
mer sales agent for the War Depart
ment: John Stephens of Jacksonville,
Fla; Charles S. Shotwen of New
York; George M. Chambers of New
ark, n. j.; Frank T. Sullivan of Buff
faIo, n. Y; Roland Perry Of Wash :
ington, d. c.; Charles Phillips, jr.,
of Atlanta, Ca: Gus Eitzen and
Mitchell A. Touart, jr., both OF Pen
sacola, Fla.
Benedict CroWell indictment the court
finds that the indictment fails to
mention the important fact that
Secretary of War Baker. both for
mally and informally, approved the
II also points out that by order Of
April 12, 1917, Mr.. Baker issued an
order declaring the existence OF an
emergency due to the war and sus-
pended the operation of the law re-
ouiring competitive bidding before
making contracts. There is no allega-
tion in the indictment, the court says,
that the Secretary of War was m1sled
or oyerreached, and nothing to show
that the accused had anything to do
with the issuance OF the emergency
order mentioned.
Conclusions Unsupported
1.-THE court is of the opinion" says
Justice Hoehling, "that while the in
dictment abounds in the statement OF
conclusions, it fails to support the
same by facts alleged as required IN
a criminal proceeding; and therefore
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