The Washington times., 1924-10-31
j. S.|SPUSH|NG.
WAR FRAUD
CASES
Attorney General Organizes to
Press immediately More
Than 100 Cases
BY ROBERT s. THORNBURGa.
international News serylco.

BY ROBERT s. THORNBURGH,
International News Service.
The colossal task Of whipping
into ''court shape more than 400
war fraud cases In the hands OF
the war transactions section Of
the Department Of Justice win be
pushed to q rapid conclusion, &C.
cording to the announcement Of A..
torney General Stone.
The Attorney General has recent
~ completed q reorganization Of
the war transactions section Of his
department, selecting Paul Shipman
Andrews, Of Syracuse. and Jerome
Michael. Of New York city. 40 d
rectors.
Both men are attorneys Of ma.
tional reputation. With q strong
force Of assistants, they have at
tackled what Is one Of the bigges.
problems Of the Administrators. ac.
cording to Department Of Justice
officials.
Special Section Formed.
I'm 1922 the colossal task Of OK.
aiming the scores Of thousands or
wartime contracts on which the
Government has paid up, or on
which It sold surplus property
proved far beyond the facilities OF
the Department Of Justice, Attor.
ney General Stone declared.
Accordingly, the war transac.
tons section was organized for the
purpose Of investigating and prose
cutting war. frauds and cases in
which the Government had over
paid contractors, or has been un-
derpaid on It's sales Of property.
Recover Millions.
1.-THE organization Of the depart
ment has recovered in two years
and paid into the United States
Treasury Se,1s5. os9. It has OBJ
tanned judgments against con.
tractors for more than $102,96S ad-
ditional. And compromise offers,
amounting to more than $4,000, 900,
are now In its hands.
"Thirty-five indictments char cling
criminal conspiracies to defraud the
Government have been obtained.
Nine Of these have been tried. re.
Suiting in three convictions, four
acquittals and two disagreements."
In spite Of these accomplish.
ments, the Attorney General pointed
out that there are 200 cases re.
naming before the section for ae.
ton, referred to 1t by the War De.
partment and other branches Of the
Government.
200 Civil Cases.
Upward Of 200 civil cases and
twenty criminal actions are pend.
ing in the courts and awaiting trial,
according to the official announce.
ment.
AN examination OF the vast
mass of contracts in the Govern
ment files 10 proceeding daily, and
as fast as cases are uncovered in |
which Illegal or excess payments |
appear they are sent to the joint |
board Of survey--a board created |
by the President in February, 1894, |
to weed out the cases calling for
action by the Department OF Jus.
tice," Attorney General Stone con.
tinued.
Review All Cases.
Andrews and Michael have been
instructed to review all cases in tho
section with a view to speeding up
and systematizing their course Of |
action.
when It il remembered that |
during the war the Government en-
tered into almost innumerable con.
tracts for the purpose of war
supplies, materials and munitions, |
and for the construction Of camps, |
and other building pro-
Jects and that since the armistice |
1t has paid out millions Of dollars
in the settlement Of these contracts
and has disposed of vast amounts
OF surplus war property, the mag.
nitude and Importance Of the work
OF the war transaction section be-
comes apparent" Stone said.
Emergency Task.
The whole work Of the section Is
regarded as an emergency task by
the Attorney General ito be pushed
hard and ended as quickly as il
humanity possible to finish so great
an undertaking"
The Department Of Justice said
that Stone intends that mo con.
tractor who got only what he law
fully should, or paid what he law.
fully ought, shall be harassed with
lawsuits" But where money is due
the Government, it was stated, the
directors Of this section are to
leave no stone unturned to get It
back.
Actions Classified.
The directors have just com.
pleted an entire classification of
the cases before the section &C.
cording to the legal points involved
the department announced. mo law
office Of twenty odd lawyers, plus
a force Of accountants and other
help, could possibly take care OF
100 cases all at once.
This is especially true Of cases
as large and complicated as those
before the section. In one case
alone, now nearly ready for trial, |
some fifty large steel cases were
required to hold the files and
papers; and the whole time OF a.
lawyer for months must be spent |
before such case can be presented
in court, in the. face Of determined |
opposition"
CELIA COoNEY'S FIRST