Evening star., 1924-02-10

pitals and visiting proposed sites in
various. parts of the country. These
supposedly official occasions were
pleasantly combined with a continu-
Gus round OF social pleasure. Lavish
entertainment and special accommo-
dations were provided during these
trips, and where those were not paid
for by local hosts. they were paid for
by Mortimer, the contractors agent
seeking the favor of Director Forbes.
This Is clearly shown not only by the
testimony of Mortimer and the re-
ceipted hotel bills which are in evil
dence as exhibits. but as well by the
futile explanations and contradictory
statements of Col. Forbes in his cross
examination
LO0n From Mortimer.
after Director Forbes and Mr.. Nor
timer had come to know and under
stand each others character and pur-
poses, Forbes, stating he was short of
funds, asked Mortimer whether he
could arrange nge to let him (Forbes)
ranged. The money was to be ad-
vanced by Thompson and Black. The
ten $500 bills were actually delivered
to Forbes by Mortimer in the bath
room of Forbes suite at the Drake
Hotel in Chicago, June %. 1922. The
conspirator then consisted of Forbes.
Mortimer, Thompson and Black. After
Forbes and Mortimer arrived at the
Fairmount Hotel in San Francisco,
Forbes introduced Mortimer. to his
Hurley, of the Hurley-Mason Co. say
ing that he wanted Mortimer to know
him intimately. This intimacy prompt
ly developed. Hurley gave Mortimer
a copy and explanation of a secret
code to be used by the conspirators
in telegraphic communications af
fecting their interests. This code and
exclamation appear in the record, page
227. When at Hayden Lake, Wash,
Forbes, Hurley and Mortimer agreed
to combine with the Thompson-Black
combination already existing, upon
terms and conditions stated in the
testimony of Mortimer. Thus the ring
of conspiratorS was increased in
number by the admission of Hurley.
Later Hurley's company secured. after
advertisement for bids by the bureau.
the contract for the construction of
the hospital at American Lake for the
contract price of S1,597,000. although
the company was the third lowest bid
der. This investigation did not at
tempt to develop the circumstances
which enabled the Hurley Mason Com
pany to secure the award, except that
the award was made ostensibly on
the basis of time of completion.
Denial by Forbes.
"Col. Forbes in his examination,
both direct and indirect, denied any
knowledge of the code and of the
agreements mentioned. When con-
fronted with code kilograms that
passed between Mortimer and his for
mer partner, Hurley, and asked
whether it was not strange that his
intimate friend, Hurley, with whom
he was in frequent communication,
had not disclosed the existence of the
code. he admitted that it was. Among
the exhibits will be found numbers
of kilograms, code and otherwise, that
passed between Mortimer and Thomp-
son and Mortimer and Hurley. Com
munications relating to proposed
deals. where the action of Forbes was
required, were sent in code by Hur-
ley to Mortimer and by the latter
turned over to Forbes. Some of these
code kilograms, when decoded. show
the familiar manner in which Forbes
former partner instructed Mortimer
things. The number and character
of these communications, the record
of the related official actions of Di-
rector Forbes in furtherance of the
conclusively the testimony of Morti-
mer regarding Forbes participation in
the conspiracy.
Example OF Conspiracy.
"A specific example of the accom-
plishment of the conspirators is fur
nished by the testimony and ex-
hibits affecting the award Of the con-
tract for the foundation of the hospi-
tai at Northampton, Mass. 1t was de-
sired to give this contract to the Pom
tiac Construction Company. Bids
were advertised. for and opened on
July 3, 1922. The bid of the Pontiac
Construction Company was not re-
ceived until long after the hour for
submission of bids had passed. The
bid was not correct in form. In any
event. 1t was not the lowest bid, yet
all the bids were rejected and the
fYu unf hHy tQ m r.ld
with the favored company. Forbes
had assured Mortimer that the Pom
tiac Company would be given this
contract When it developed that the
bidder and the quartermaster general
of the Army and the chief medical
officer of the bureau recommended
the award to the Northeastern Con-
struction Company, Director Forbes,
pursuant to his arrangement with
Mortimer, held up the matter until he
returned from the western trip. His
policy was to attain the objects of the
conspiracy. but. so far as possible, to
shift responsibility to the War or
Navy Department. whichever depart
ment was charged with the develop
ment of the plans. This was accom-
plished by insisting upon his right to
sign the contract, but to refer to the
responsibility for what was done as
the responsibility of the other de-
partment This effort was apparent
in his explanations while on the
stand. The chicanery of Forbes, his
determination to see that the Pontiac
Company got the contract in accord
ahce with his agreement with the
other conspirators. and at the same
time to have the record appear that
he was merely pro forma actor in
making the award. is indicated par
ticularly by the telegrams that pass
ed between him while he was on the
west coast and General Counsel Cra-
mer and Acting Director Rogers in
Washington.
Award of Contract.
"On July 10, 1922. having received
the telegram which appears in the
record on page 241. that the Pontiac
Company was not the lowest bidder.
that the quartermaster general of
the Army wishes to see the bids, and
that the contract should be made by
ferred with Mortimer, explained the
situation. and again assured him that
the Pontiac Company would have the
job. Forbes thereupon. on July 10,
te1egraphed Cramer, who had been
charged with receiving and opening
the bids, to award the contract to the
Pontiac Company if it would guar
antee to do the work in sixty days.
On the following day. namely. July
IL. Forbes wired Rogers. who was
"SIhtS dii SStOi, ina oil Sohtl acts
should be made in the name of the
United States Veterans Bureau, as
provided by law. This meant that he
tForbes) would award the contract.
In that telegram he directed Rogers
to consult Cramer, the general coun-
sci, and then to give him (F'orbes)
his recommendation as to whom the
Northampton contract should be
awarded. Forbes knew what the re-
suit of Rogers conference with Cra-
mer would be, because on the day
before, as stated, he had wired Cra-
mer to award the contract to the