Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-02-19


chief law officer Of the government
at time when his colleagues in the
cabinet were concluding agreements
now recognized by Congress as with
Whether new factors have entered
into the latest phase of the situation
IS not revealed. nor are the senators
opposing him willing at the present
charges they say they will make if he
remain in the cabinet and undergoes
the ordeal of public Investigation,
as proposed in the pending resolution
introduced by Senator Wheeler
Says He Welcomes Probe. .
Mr.. DAugherty has told his friends
In ana out of Congress that he does
not fear the result OF such an inves-
tigation: has pointed out that as a
matter of fact he himself requested
that the inquiry be held after de-
mands for his retirement had been
made In the Senate; and has insisted
that his record both as regards the
oil scandal and all other matters con-
neoted with his administration IL alb
soiutely clear. Yesterday he sent to
tho Senate. in response to an inquiry,
a record Of the war frauds investiga-
ton which he said showed that ac-
tual material progress had been made
despite great handicaps.
RepifeS to senator King.
Mr.. Daugherty's report to the Sem
ate was sent in reply to q resolution
by Senator King. democrat, Utah.
asking for information as to progress
in disposing Of the fraud cases. The
communication, part of which was
held confidential both by Mr.. Daugh-
erty and the senate, embraced all of
the information which the Attorney
General submitted to President Cool
idge late last week to acquaint the
Chief Executive with affairs in the
war transactions section Of the De.
partment Of Justice.
Mr.. Daugherty explained to the SEN
the report submitted to the President
prior to its action on the King resolu.
ton, but he was sending to It a supple
mental report supplying information or,
the wright-Martin case for which the
Senate specifically asked.
WitAkofds Some Data.
To make public all OF the Information
asked for, the Attorney General said,
would be to damage men and concerns
who are now cooperating with the
government in an attempt to make flair
and honorable adjustments"
The report -recounted the formation
Of the war transactions section and the
mass Of work necessary to institute
proceedings against those alleged to
owe the government as result OF wal
operations. The attention Of the Sem
ate was directed TO the fact that the
war contracts are novel and intricate
to construe. and involve many Ques-
tions Of law which the courts hitherto
have not considered -
Reasons for Delay.
It has been, necessary, 1t was ex-
planned, to bring suits involving
those questions in order to obtain
legal construction Of such points be-
fore. nsgotiationa could proceed on
that reason, 1t was added, trial jbf
many cases has been delayed.
Regarding tho wright-Martin. dir
craft case the Attorney General re-
called the iIy:stisation conducted BY
his ultimate report that the govern.
ment could not sustain it's claim.
That report WAS made late in 1892,
but the heads Of the war transaction
section disagreed and another move
erty said. with the result that nego-
tiations now going on make It ap-
pear that perhaps the controversy
may be limited to . determination
Of, legal questions only. Auditors
and ofiioials appear to be near, an
Of accounting, Mr.. Dausherty said.
ana this situation indicated that good
prorreso was being made.
The report showed that the. gov
ernmsnt had recovered in the war
fraud cases nearly four ana a hair
million dollars and that cases pend
inr before courts involve something
in excess Of SCI, 100000. In addition
TO those the department has under
investigation other cases in which
Il IL claimed the government is owed
about forty million dollars, but many
Of these are held UP awaiting legal
decisions in basic eAess before suits
are brought -.