The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1924-04-04
Fraud Case
Handling.
to Be Aired
Dismissed Air Service Investi-
gator Tesiifies His Evil
dence Bearing on War
Contracts Seized.
Weeks Holding Papers

washington, April 3.-The senate
Daugherty committee turned its ln-
auiry today upon the War department,
and concluded three-hour session by
summoning Secretary Weeks to ap-
pear before 1t tomorrow with specined
documents relating to departmental
handling of war fraud cases.
The committee listened to the story
of Thomas f. Lane, a legal adviser
to the army air service, who said he
had been ordered day or two ago
TO stay away from the committee.
and then had been dismissed from the
service.
Lane said also that papers bearing
upon his inquiry into war contracts
which he regarded as his own, were
seized by Capt. w. T. Volandt, as
sistant chief of the army air service
who issued the stay away order.
Captain voandt, who was at once
summoned before the committee. in
the course of sharp Interrogation by
Senator Wheeler, democrat. Montana.
the committee prosecutor. and other
members. said he regarded Lane
papers as part of the official depart
mental files. He had turned them
over to Secretary Weeks. he said, ana
the latter had sought an opinion as
10 their status from the Judge ad-
vocate general.
yalandt Denies Charge.
Senator Wheeler. in the examina-
iion of Captain Volandt. charged that
the dismissal Of Lane and the seque%-
tration of his papers was 'lntenoeo
TO cover up" the War department
handling of air fraud cases. rms
Nolandt sharply denied.
The papers, Lane claimed, were for
tho most part copies OF reeommenda-
tons he made as to procedure the
government should take against war
contractors and Volandt stated that
Secretary Weeks had asked the Judge
advocate general to give an OPINION
as to whether such copies were ofnciai
records.
His ORDER to Lane ito stay away
from the committee" Volandt con-
tinued. was Issued because the air
service wished to rush" preparation
Of claims again the Standard AIR
craft corporation and the WHY'S
Overland company, that these might
be sent to the Department OF Justice
for further action.
Although not in possession OF MS
records, Lane described his own IN
vestigations and commentators
touching the Standard company, the
Lincoln Motor corporation, and the
American Bosch Magneta company
which had war contracts.
Tells Of Compromise.
From the Standard company, con-
trolled by Mitsui & Co., New
York subsidiary of Japanese
banking firm, he said, the govern
ment should have obtained repay
ment Of about $2,200.0O0. From the
American Bosch Magnetic company,
he had recommended. repayment OF
s45O.0O0, and from the Lincoln cor
poration he fixed the sum OF ss,-
10000.
A compromise was made by the De-
partment of Justice in the Lincoln
Motors case, he said, over the formal
protest of the War department, TOT
$1,000, 900, after the company had
gone into receivership. From the
others, he added. nothing had been
obtained. and against them no action
had been instituted.
Lanes story as to the Standard
company covered ground previously
entered upon by the Daugherty In
ouiry. The reaudits he directed dis
closed, he said. that Mitsui
Co. had invested s5.5oo.ooo in the
Standard company. and got that all
back and a profit Of 100000 or
500, ,o00." A part Of the money the
Mitsui company considered invested.
he said. was 81 1.s19 900, which It lost
before the war in financing manu-
featuring plant in Plainfield. N. j"