Evening star., 1924-04-02
WEEKS, DAUGHERTY
GOFF INDICTMENTS
ADVISED BY SCA|FE
Alleges Conspiracy to De-
fraud in Wright-Martin
Aircraft Case.
PROBE OF ROMA FALL
BLOCKED, PROBERs TOLD
Daugherty Committee Hears For
mer Agents Story of U. S. Fail
ure to Bring Suit.

Continuing his complaints about
failure of the Justice Departnen to
prosecute various war fraud cases.
II. L. Scaife, once a department in
vestigator, told the Daugherty inves-
tigating committee today that, in his
opinion, Harry NJ Daugherty, Secre-
tary John W. Weeks and other
Martin aircraft case.
The witness came to the Wright
Martin case after h had renewed his
charges regarding sale of the Bosch
Magnetic Company and had declared
that on the very day the Army air
ship Roma was destroyed at Eorfolh
in 1921 h. had tried to start a Dc
partment OF Justice inquiry into that
subject. but had been blocked by
William J. Burns.
Names Three in Case.
1t was his judgment. Scaife said.
that the WrightM Martin case was one
calling for indictments" Pressed
by Senator Moses, republican. New
Hampshire, he named Secretary
Weeks. former Attorney General
Daugherty. Charles HAYDEN. chair
= u.
and Guy ID. Goff. former assistant
attorney general as those who
should be indicted
Scaife said his investigation into
the Wright Martin case was compiet
ed and the matter ready for suit
before he left the Department of Jus
tice. but that they refused to bring
suit"
The indictments, the witness said,
should be drawn up on charges of
conspiracy to defraud the United
States government"
But all these facts" Senator Moses
interHened. concern things which
took place in 1918 and 1919 when Mr..
Weeks was not Secretary of War"
But these letters were written
after that said Scaife. referring 10
correspondence about proposed pros
ccutions.
SAYS Prosecution Promised.
The witness said he had reported
the facts 10 Mr. Baughertv and thai
a promise had been made IN behalf
Of the Department Of Justice TO in
Stitute prosecutions.
This case had gone through every
process of audit and revincw in the
War Department before il came TO
the Department OF Justice" he said.
Letters exchanged between Seer
tary Weeks, Hayden, and others in
1922 were read by the witness. Mr..
Weeks told Hayden, in one of the let
ters, that an appeal from air service
officers TO himself was possible in the
case of ''over-payment."
Another letter from Assistant At
torney General Lovett to William
Hayward. United States attorney in
New York, dated November Is. 1921.
transmitted War Department records
on the Wright Martin over payment
case and directed that recovery pro
ceedingS be started.
In a letter dated November 23. 1921.
Weeks told Hayden that he would re-
quest the Department Of Justice to
take no further action in the case un-
III Weeks had talked with General
Manager Hoyt of the Wright Martin
Company.
on August s, 1922. Seattle went on.
Goh wrote TO the attorney for the
Wright Martin Company, saying tina;
suit was to be instituted.
Says Attorneys Switched.
The Department OF Justice was
switching the case around from at
torney TO attorney Scaife said. 1t
was taken back from District Attor-
ney Hayward in New York, he said.
and rendered to Leon B. Duer, a New.
York attorney.
Meanwhile, Scaife asserted. wit
nesses were disappearing and the
men who made the audits were leav-
ing the service.
Senator Wheeler, the committee
prose cutor. suggested that "the vel
unteer remarks that Mr.. Scaife made
as to indictments have no particular
place in the record, but Senator
Moses said il was too late to with
Draw the testimony az il had already
gone over the wires
George b. Chamberlain, counsel for
pauEherty, asked the witness why
he had not advised also the indiCt-
ment of the people who made these
first place"
Scaife agreed that both groups
ought to be prosecuted
Committee Recesses.
The committee recessed until 10
am. tomorrow.
Taking the stand for the third time.
Scaife continued his long story about
obstacles encountered in his efforts to
institute proceedings against airplane
manufacturing concerns charged with
receiving "overpayments' during the
war
Capt. Luke McNamee. head of the
Navy intelligence service. was quoted
by the witness as saying that the
Nitsai Company, Japanese concern,
by its ownership of the Standard
Aircraft Corporation. had obtained
plans and built experimentally almost
every type of military plane. Scaife
also repeated his charge that the gov
ernment had sold the Bosch magnetic
property, seized from German owners
during the war, to Martin Kern for
grossly Inadequate" consideration. lie
sa I'd that a. Mitchell Palmer, first alien
property custodian and later Attorney
General, had been employed as d Law
yer for Kern.
Says FavorS Granted.
George W. Wickersham. as attor
ney for Mitsui e Co, got special
favors" and exercised undue inf1u
ence" with the Department of Jus
tice, Scaife asserted. He put in
copy of a letter from Wick ersham
to James NJ. Beck, now acting Attor-
ney General, asking the latter TO
assist in getting the Supreme Court
to set down a motion for argument.
This letter, Scaife observed, showed
the "closeness of the relations and
the Operations of what | call the in
visible government"
The charges as to the Standard Air
craft Corporation were taken up
nearly two years ago in the House
impeachment proceedings against
Harry NJ Daugherty, and Paul How
land, counsel for Mr. Daugherty
asked today to have it noted in the
record that the House committee eN-
onerated the former Attorney Gen.
CONTINUED on Page 2. Column 5-a