The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-04-03
WITNESS SAYS
PAPERSST0LEN
IN AIR BUREAU
Testifies That He Was Dis.
missed Because He Would
Not Stay from Committee
IN WAR FRAUD CASES
Declares Lincoln Motors and
Standard Aircraft Firms
Let OFF Too Easily

Washington, April 3.-The
Daughcrty investigating commit
tee pursued its aircraft inquiry
into the war department today
with the result that Secretary
Weeks was directed to appear ON
the witness stand tomorrow
morning.
Washington, April 3.-(By the A.
PD-Thomas r.. Lane, until week
ago legal adviser to the chief of the
Army Air Service, told the Senate
Daughcrty committee today he Ind
been ordered "by Captain Volandt
Of the Air Service to "stay away"
from the committee and the capital.
When he refused to be dictated to,
he said, he was "dismissed" from the
Air Service.
On motion of Senator Jones, Re
publican. Washington, the commit
tee directed Chairman Brookhart to
notify Sec. Weeks of Lanes testi-
mony.
The witness also declared that pa
pers from his own personal flies in
connection with the aircraft cases
by Captain Volandt.
AS legal adviser to the air service.
Lane said, he had recommended to
the Secretary of War that the Gov
ernment cases against the Standard
Aircraft Corporation and others who
furnished war material should b
reOpened. He felt. he declared, there
was "some ulterior purpose behind
his dismissal" and that he had been
shocked and panied" because he had
trusted in Captain Nolandt.
To Call Captain
The committee decided to call on
Captain Volandt and directed him to
bring papers taken from Lane. Sen
ator Ashurst suggested that Volandt
be attached if he did not appear
soon.
These papers, Lane said, include
his only copy of the report to Sccre
tary Weeks.
81 presume l was dismissed" he
said, 81 don't know what my status
/
files empty and all the papers TAX
en- from the desk where have work
ed for five years.
His, files, the witness said, were
extra copies" of all papers that had
gone through his hands in following
up $50,000,00O worth of war claims
which ! kept as matter of person
al pride"
Thought Situation Bad
AS far back as 1919, Lane said, he
had become convinced that the sit
uation regarding airdraft construc-
tion was "bad.''
The Lincoln Motors was the first
he dealt with which he thought was
bad" he said. 1t was settled for
one million dollars, he added, while
the governments claim was more
than $9,O00,00O. The war department
refused to accept the settlement in
the Lincoln Motor case recommended
by former Attorney General Daugh-
crty but "they went ahead and set
tied anyhow" o'#H
Senator Wheeler, the committee
prosecutor, brought out that Lane
had not volunteered to testify but
had appeared only when sent for.
81 haven't sought the limclight,''
he said. 81 have thought that wha'
was going on at the War Depart
ment would come out.
81 don't believe the Secretary oil
War will indorse any action Of this
kind commented Senator Jones.
The Standard Case
Senator Wheeler directed Lane t.
tell in detail Of the Standard Air
craft case.
81 became convinced when | frs
started that the situation was bad a.
to all of these negotiated settle
ments of war cases that involved
huge sums of money" Lane said. "I?,
1919 officers in the Air Service re
signed and were discharged. About
the middle of 1919 Colonel came
from the treasury department ant,
was put in charge. The first cas-.
called to my attention was the Lin
coin Motor. l was ordered to writ.
an opinion as to one million dol
lar item. l recommended in this tna-
the Lincoln Motors ought to pay back
$9, $3.50 600.
81 bet my ears that if suit had
been filed the government would
have got more than it did. handl.
ed the case and l know what am
talking about. Lawyers for the re.
ceiver of the Lincoln Motors admit
ted greater liability, Lane asserted
| "Were the assets in the hands of
the receivers enough to meet the
governments. claims" he asked.
"No, they were about, $8,O00,000f" Z"
did you hold conferences with
the Attorney General himself in
these matters ?" Senator Wheeler
asked.
Frequently he answered. evil
liam Ryder. one Of the assistants
Attorney General was the Attorney OF
General Dagherty, Capt. C. volandt.
j. M. Wainwright, assistant secretary
of war, myself and dozen persons
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