Evening star., 1924-05-06
DEFENSE OUTLINED
] IN LUMBER CASE
Gale Melted Government Better
Than Other War Material,
Counsel Says.
DENIES FIXED" INFLUENCE
Five Others Face Trial for Alleged
Conspiracy.

That the sale of surplus lumber
from Army cantonments netted the
government better than the DISPOSE
tion of any other surplus war mate
rial, of which it had on hand $4,000
000,000 worth when the armistice was
signed, and that in most of its sales
the government did not secure more
than two-thirds' value, while the
lumber which had cost the United
States about $23 per thousand was
disposed of at prices that averaged
that much, and that, Furthermore, the
government lost nothing in the resale
of the lumber, was the declaration
made today to the jury in Criminal
Division No. of the District Su-
preme Court by Attorney Charles a.
Douglas, chief counsel for Jonn l..
Phillips of Thomasville, Ga, VINO Is
on trial with five others, charsed~Wiln
a conspiracy to defraud the united
States out of $1,500,000 in connection
with the sale of the surplus lumDeT.
Mr.. Douglas told the jurors that the
evidence to be submitted on behail
of Phillips would disclose that the
prices for the lumber were fixed In
strict accordance with the contract
between Phillips & Stephens ana the
government and that no improper or
corrupting influence was exercised on
the government officials, Morse, Cham-
bers and Shotwell. Mr.. Douglas In
sisted that the defense would contend
that the contract in question was one
of outright purchase by Philips
Stephens. and was not one OF agency.
Under that view of the agreement, ne
asserted the defendants were at nd
erty to dispose of the lumber at such
prices and on such terms as they
should elect. The II per cent TO pc
paid Phillips & stephens, Which tne
prosecution calls a commission, was,
in fact a discount allowed to Philips
and his associate between the oase
price and the contract price OF the
lumber.
She legal aspects of the contract and
declared that if Phillips discharged
the contract obligations no legal
wrong of a criminal character may
be imputed to him; if he interpreted
the contract in a way olHerent from
the correct legal way, no crime can
be imputed to Phillips If he sincerely
thought his Interpretation was cor
rect. The government could no more
complain of profit made by PhllllpS
and his associate, the attorney de-
clared, upon a resale made in good
faith by them or either of them, than
it could be made to assume any
losses resulting from such resale.
Mr. Douglas was followed by At
lined the defense.
Defense Outlines Case.
Attorney Wilton J. Lambert follow
ed Mr. Douglas and outlined to the
Jury the defense of John Stephens,
the millionaire lumberman of Jack
sonyille, Fla, who with John L.
Phillips comprised the firm OF
Phillips &; Stephens, with which the
government contracted for the sale
of the surplus lumber Mr.. Lambert
asked the jurors to bear in mind the
claim that Mr.. Stephens was guilty
, of no fraud in connection with the
government contract and that he did
rot receive one cent of graft or any
thing in excess of what was due him
under the terms of the agreement
The lawyer explained the formation
of the firm of Phillips & Stephens to
handle the surplus lumber sales, and
pointed out that Mr.. Stephens had
never been in partnership with Phil
lips prior to that occasion. He knew
of Phillips reputation as a lumber
salesman, and because of the need of
an expert to dispose of the mass of
lumber. agreed to finance him, and
the firm was started and Stephens
took care of the books. These books,
with the account of sales, were ac-
curately keptby a clerk of Mr.. Steph-
ems, Mr.. Lambert said. and he would
knowledge or information of anything
being paid in excess of what the
books disclosed. MIR. Stephens, 1t
would be shown, never participated.
knowingly, directly or indirectly. in
the subsequent sale of any portion
the invoices from the firm of Phillips
a. stephens