davidaulloa/AmericanStories huggingface dataset:
Evening star., 1926-03-21
Millions Recovered i'm War Fraud Cases;
U.S.. Victimized Itself Throug IN Contracts

partment of Justice would expend on it's
fraud work for the fiscal year ending June 30:
1927, what part of the $1,0O0,OOO appropriated
for this purpose for the present fiscal year Is
unexpended. This balance Mr. Michael told the
House committee on appropriations will be
about $500, 900. In other words, the anticipated
drop in activity for next year from this year
would be in the ratio of from to 3.
BY the end of this fiscal year 1t Is esti-
mated that all of the cases lacking merit will
have beer returned to the War Department
and those still open will he cases in which
the Government has causes of action SUM-
ciently merltorious to require their prosecu-
ton
Cases Still Pending.
Indication of the amount of work
hand is disclosed by the figures showing that
January |. 1926 there were pending
criminal indictments and III actions involving
s79.340.146. OF the total amount involved in
these cases. approxima ely SCI 500 900 is in
volvcd in the cantonment cases. so that the
remaining cases involve only approximately
5000, 900.
During the fiscal year 1925 the war trans
actions section collected in cash s3,217,731.
approximately s175,oOo more than in the fiscal
year 1923. and approximately $1,000, 600 more
than in the fiscal year 1924.
At the beginning of this calendar year there
also unpaid judgments aggregating
$43o99l The value of these judgments, 1t is
said. is difficult TO estimate, in some of
the cases the defendants have appealed.
A broad recapitulation of the work Of the
Government in prosecuting It's war fraud
campaign shows that a total of $10,0OS, ,44115
had been collected up to January l. 1926. at
a cost to the Government in appropriations
amounting to $2.70O ,O0O of which only 81 973,-
092.76 had been expended by January l OF
this year
On this basis of calculation. therefore, 1T
is figured that the cost of cash collections
under the fraud campaign has been less
than 20 per cent More collections. however.
may be made later result of money already
spent, it is pointed out that the estimate
of less than 20 cents the dollar may he
lowered materially.
Indication of the dwnding work on war
frauds was given the House committee by
MIR. Michael who went deeply into the gem
eral principles underlying the Governments
activities in this direction, the results obtained
to date and criticism of both the proiteer and
the Government agent.
when appeared before the committee
last year" said Mr.. Michael. I'VE advised the
committee that regarded the work of
investigating and prosecuting war frauds as
emergency work. to be completed at the
Evening star., 1926-03-21
Denial Of Foreign Trade Competition
Held ''Thin Edge of Socialist Wedge

our political policies, foreign and do
mestic.
The Sherman and Clayton acts for
a number of years have been f1outed
by men of great wealth and corpora.
tions possessing enormous interests.
and the Federal Government has
looked with complacency upon the
ruthless and destructive course of
monopolies. and apparently has an.
proved of their deadly and destruc.
tive work. And the people, by reason
of their constant contacts with giant.
ism, seem either terrified or mar.
cotized.
Wealth unrestrained, no matter in
whose hands it may be. sooner or later
becomes a despot. When It controls
wages, production and distribution. it
controls the people and holds their
lives and liberty in its aIl-powerfnl
hand. Our railroads are to be con.
solidated. Most of the raw materials
and the manufactured products are
controlled by corporations exercizinr
monopolistic control, either actuallv
or potentially.
I repeat, the safety and security of
this Republic. not only political but
Industrial, depends upon the preserya
tion of the competitive system in orr
economic life. There must be a free
and fair field for individual initiative
and for the efforts of young men of
courage and genius. The doors of
economic and business opportunity
must be open for every American boy
and the hope and expectation of ma
terial reward must be held out To ali.
! r kcopyriEhk 1e2e.A
Evening star., 1926-03-21
BY WILLIAM HENRY KING,
Senator from Utah.

For many years efforts have been
made In the United States by various
industries to prevent foreign compe-
tition through the erection Of tariff
barriers, and to destroy domestic COM
petition by massing wealth in gi-
gantic monopolies which ruthlessly
devour competitors. The Sherman
antitrust law was enacted because
of the recognized menace of predatory
wealth and monopolies and combina-
tions to restrain trade and secure ex-
tortionate prices for the commodities
consumed by the people. The com.
petitive system is a part of our eco-
nomic and industrial life. Statesmen
and political economists have recog-
nized that the overthrow of this sys-
tenn would enthrone. monopoly, which
would be precursor of socialism.
Socialism will not thrive where the
laws of supply and demand have free
play and where individual effort has
a. fair field for development. De-
mocracy is the antithesis of socialism,
as it is of all forms of oligarchy. An
oligarchy of wealth may masquerade
as republic, but it's power to de-
stroy liberty-political and industri-
al-may still exist.
There is scarcely an article or COM
modify that enters into interstate
commerce that is not directly or in
directly controlled by some powerful
monopolistic organization. These or
ganizations control mot only our eco
nqmie. and business lfe, hut determine
Evening star., 1926-03-21
FILIPINO HEADS DEFY COOLIDGE;
TRIUMVIRATE RULES ISLANDS
New System of Governmental Control Set Up With.
out Consulting People-Results of 1925 Elec-
tons Now Standing Completely Nufed.

A move. They sensed the local politi
cal significance of the situat ton and
knew they had the Nationalists on the
run. However. rather than wait two
years for the practical realizat ation at
the polls of their political advantage.
and take a chance at what might hap
pen in the interim. they agreed to en-
ter into the proposed coalition on the
condition that they may be given an
equal participation in the government.
al patronage.
Quezon agreed to this condition, and
supreme national council was
formed, composed of five Nationalist
and five Democratic leaders, with
Quezon as its president and Demo
crata as its secretary. The Demo
cratas were promised one of the two
Washington resident commissioner
ships, now held by Nationalists. the
speakership Of the House, and an
equal share in the governmental Of
fees under the control Of the ma ajority
party.
Now the Legislature had been
elected by popular vote, and when the
Nationalist leaders renounced the ma
jority control they had won at the
polls they acted without consulting
their constituents. thus stultifying the
DaSlC pflnclple or democratic govern
ment, for they nullified the practical
workings of the theory of majority
rule. 1t was as If the Republican ma
tional committee in this country
were to make an arbitrary agreement
with the Democratic national COM
mittee to share the governmental
patronage for the remainder of the
present Republican administration.
AS the situation stands. the Philip
pine Legislature is for all practical
purposes nothing but a dummy organi-
zation for the formal ratification of
acts of the supreme national council,
political triumvirate cleverly engi-
neered bv Quezon for personal political
ends. The council is by no means a
spontaneous popular development.
Only 10 of the 1856 members of the
Philippine Legislature advocated it's
creation, and it has met stern opposi-
ton from many Filipino quarters, but
Quezon has for the moment triumphed
and created a unique situation, one
which would seem to justify President
Coolidge's doubts as to the readiness
of the Filipino people for complete
autonomy.
Evening star., 1926-03-21
BY FREDERIC WILLIAM VILE.

~ ORN BELT boosters Of radical
farm-relief legislation in Con-
gress are discounted by evi-
~ dence from back home" that
their calamity howl has no
real basis in fact. Iowa, whence the
current "Des Moines movement" for
vast Government aid to agriculture
originated, far from being poverty
stricken, Is depicted as rolling in
wealth. Not only that, but the source
Of its opulence Is proudly proclaimed
to be the very farm product-corn-
which Midwest farm politicians now
lobbying on Capitol Hill are touting
as the root cause Of Iowa's economic
woe.
The glaring contradiction between
the farm politicians prOtestations OF
ruin ana Iowa's own boasts OF aff1u-
ence has become one OF the amusing
political mysteries Of the hour. Mem
bers OF Congress are aware Of 1t. I'm
til 1t Is cleared up the proponents Of
hundred million dollar raids on the
Federal Treasury in the Suise OF
farm relief" are doomed to have
harder shedding than ever. To date
they have found the going exceedingly
rough.
Advertisement Is Cited.
Authorities who have been a little
skeptical about the sincerity and ac-
curacy of farm politicians claim re-
garding Midwestern agricultural con-
ditions have just had brought to their
attention an amazing advertisement
recently published in Eastern metro
politan newspapers. 1t is sponsored
and paid for by the Iowa Daily
Press Association" of Davenport.
which consists of 81 daily newspapers
published in 25 different Hawkeye
cities. The advertisement fills full
page. Its outstanding feature Is the
picture of a chuckling Iowa farmer
vainly trying to shoulder a basket
overflowing with ears of corn. The
ia sket is labeled 'Corn-477, 1856 900
bushels In 1925" Adjacent to the
picture is the legend: $500, 1853, ,1S0-
Value of the Iowa Corn Crop for 1925.
Largest In States history. both IN
bushels and dollars. Adding value of
other products brings total up to
about s., 900, 900 900"
"Pr0sperity-Plenty of It,"
eff this isn't prosperity-and plenty
of it-then we don't know what pros
perity isl the advertisement later on
exclaims, and continues:
Some people may have been mis-.
iGQ DN TCCSHl StdlSIlSnlS IDdt iowa
corn was selling for so cents a bushel.
That is positively untrue. On the
very day such statements were made.
Iowa corn was selling al the country
elevators for 63 cents bushel! This
means that the Iowa 1925 corn crop
of AT 1856 900 bushels is worth to the
farmers themselves $780, ,000-
! that's equal to about $50 apiece for
every man, woman and child in New
York!
"And that is very conservative
estimate. For large part of Iowa's
corn Is fed to hogs, where it brings
a much higher price. In other words
the real value of Iowa's corn crop
is actually far in excess of the figure
| quoted above.
"If to this we add the value of
| Iowa's other crops, and the value of
| it's live stock, poultry, dairy products,
! industry and coal. the State can
show a new wealth of almost two
billion dollars.
1.-The fact of the matter is that to-
day-right now-Iowa offers one of
the most profitable and responsive
| markets in the entire country. Even
Evening star., 1926-03-21

earliest possible opportunity, and recon-
mended an appropriation for that work much
larger than had heretofore been made for IT,
on the theory that the larger approximation
would enable us not only to achleVe petter
results In individual cases. but also to hasten
the day when the work might be completed.
The end Is now in sight.
I'VE hope that have made it clear
that the abolition of the war transactions sec
ton a separate division of the department
is only the first STEP although considerable
step toward winding up this work. There Will
he considerable work to be done during the
next fiscal year and it will probably be sew
eral years before the involving war
transactions finally closed 1t should be
possible. however. to continue the work with
constantly diminishing appropriations.
Plunging into a straightforward discussion
of the criminal phases of the problem and the
partment of Justice from some quarters. Mr.
Michael told the committee that charges that
fraud and profteerinG were committed on
large scale during the war and later In the
liquida ton of war activities has frequently
been made. both in and out of Congress. yet
he added significantly. comparatively few
cases involving fraud have been discovered"
although 81 indictments charging war
frauds have been returned. only two convic-
tions and two pleas of guilty; and these IN
relatively unimportant cases. have been OBJ
tanned. OF these indictments p have been
dismissed on the Governments motion.
Investigations Explained.
THE inference is" he continued. that
either no honest and efficient effort was made
to detect and punish war frauds or that war
frauds were not prevelant as was sup
posed Because we believe 1t of the utmost
importance that the correct inference he
drawn. deem it our duty to throw such
light upon the question as we can.
I'VE were placed in charge OF the work or
investigating and prosecuting war frauds al
most six years after the armstice. 1t had
then become extremely difficult. II not prac-
tcally impossible, detect frauds not there
tofore discovered except in isolated cases. by
ia son of lapse of time.
I'VE believe tina. an honest and determined
effort has been made detect the frauds
Derpetra ted against the Government during the
war and an the liquidation of war activities,
although 1t is undoubtedly true that some
fraud has gone undetected War transaction
in general or specific transactions have
been the subject of investigation by eight
different agencies We are familiar with the
work of all these agencies and our knowledge
of their work induces our belief that the effort
to detect war frauds honest and deter
mined.
81, llad pa
Evening star., 1926-03-21
BY NORBERT LYONS.
Secretary United states Mission. American
Chamber of Commerce of the Philippine


Islands.
Following President Coolidge's mes
sage to Congress in which he sug-
gested the augmentation of the gov
ernor generals powers as step nee
essary in the exercise of our national
obligations toward the Filipino people.
a remarkable series of events took
place in Manila, conceived and ma.
neuvered by Manuel Quezon, president
of the Philippine Senate and head Of
the Nationalist Consolidated party. AS
result the leaders of the two great
political parties in the islands are
lined up in opposition to the Presi-
dents policy and have organized a
system of governmental control by a
triumvirate. in defiance of the organic
law of the islands. In this move the
people were not at all consulted. and
by It the results of the 1925 elections
stand completely nullified.
Mr. Coolidges pronouncement was
in effect A direct blow at the 'imme-
date independence campaign spon-
sored by Mr.. Quezon's party. 1t made
manifest to the Filipino people that all
the money and effort expended on
organized propaganda and special in
dependence missions" to the United
SLdlcS III lHS past SIX years itdu DeeIl
wasted-that the activities of the ma
jority party in behalf of immediate in
depe ndence had not only been ineffec-
tive. but had, in point Of fact. produc-
ed a result directly contrary to the one
expected.
Mr.. Quezon was shocked. and well
he might have been, for the situation
gave the Democratic minority an ex-
cellent opportunity to capitalize the
failure Of the majority's principal ac.
tivity and made a Democratic victory
ir the elections two years hence a
virtual certainty. To save what he
could of his own position of leader
ship and of his porty's control in local
governmental affairs Quezon pro-
posed the formation of a coalition be-
tween the Nationalist and Democratic
parties, with the avowed object of pre-
senting a solid. united front against
the progress of the "imperialistic"
cause in the United States as evil
denced by the Presidents message.
The Democratic leaders. however.
were not to be precipitated into such
Evening star., 1926-03-21

XX HAT te became of all the war pr'h-
wv Who does not remember the hue
and cry that went up from all sides
after the boys came home from
France? Charges that the prof1teer had made a
mockery of patriotism and piled up huge sums
in illgotten gains at home while the boys were
fighting and dying in the battle tile for democracy
on foreign soil at the pay of $50 month were
hurled wholesale about the country. II was
popular sport ironically to rand the "patrio-
teer" and demand that government outraged
by the insult and struck in the pocket nerve by
"grafters' should make the rascals pay, and
send the criminals to prison.
What has been the result?
Since May 1922. the Department Of Justice
has been at this work. Through it's war trans
actions section 1t has gone about the matter In
a business like way to find not rumors not
general charges. but facts under the law. And
now according to latest indications. the end Of
this campaign of investigation and prosecution
is "in sight
What Has Been Result.
We're there as many "grafters' under the
law rumor shouted to the heavens. and how
many of them have gone to jail? How much
money has the Government retrieved and how
much did the collection cost? How near is the
big job to completion?
More than $l0.000.000 has been collected.
profiteerng in it's general sense is estimated
by the Department of Justice to have been wide
spread but the actual number of real frauds
disclosed has been comparatively few. Only two
convictions and two pleas of guilty have been
obtained far in criminal out of 81 in
dictments. The $40 600 900 was collected at
cost of less than 90 cents on the dollar
Under present plans the work OF the war
transactions section has been far developed
that in all probability it will be abolished at
the end of this fiscal year; June 80. and its re.
naming activities turned over to the perma-
nent reaniZation of the Department OF Justice.
Jerome Michael. special assistant to the At.
torney General and director of the trans
actions section. will leave his post al the end
of the fiscal year. under present plans. and re-
turn TO his law practice in New York City. In
all probability the transactions section
itself will be abolished. The plan under consider
alton is for the pending work of the war
transactions section to he turned over to AS
sstant Attorney General Herman j. Galloway.
These developments somewhat dependent
upon action OF the Senate on the 1927 appropria.
ton bill for the Department of Justice, which,
already passed by the House. has been reported
out by the Senate appropriations committee.
Under the bill as 1t stands at present the De.
Evening star., 1926-03-21
DISCONTINUE COMES TO BACKERS
OF RADICAL FARM RELIEF PLANS
Figures in Prosperity From ''Back Home'' States
Discredit Claims of Some Members
of Congress-

before the addition of this $1,000. :.
100000 of new wealth Iowa had an
average wealth of 81 900 for every
family in the State"
Other Iowa Figures.
One of the principal agricultural
journals of the Midwest. which is
behind the drive for radical farm
relief legislation, Is Wallace's Farm
er. formerly the property of the late
Henry c. Wallace. Secretary of Agri-
culture, and still in his family's own
ership. Not long ago Wallace's Farm.
er sent broadcast over the country
a striking folder labeled Iowa Con.
tinues to Lead in Farm Wealth" "
Corn crop figures and incidental
State prosperity were described as
Not boom-hut the largest farm
income in five years" The 1925 corn
harvest was heralded as the largest
Iowa has ever produced. Corn,
live stock and poultry, according TO
'Wallace's Farmer. make 1t en-
phatically possible for Iowa to retain
leadership in farm cash income. not
only in the corn helt, but in the Ma
tion." The journal takes pride in
quoting testimonials from farmers,
giving Wallace's Farmer credit for
a good share of the improved out
look"
This writer asked Senator Albert
r. Cummins, Republican. of Iowa the
significance of the discrepancy be-
tween corn belt booster claims and
corn belt calamity plants. He ex-
pressed the opinion that things are
not so good as the boosters profess
or so bad as the prophets of despair
pretend. The veteran Hawkeye states
man conveyed the impression that
the truth lies somewhere between the
boasting and the blubber.
Cummins for Legislation.
81 am myself strongly in favor of
radical farm.relief legislation" Sen
ator Cummins explained. "Notwith-
standing what figures may show IN
corn bushels and corn dollars, the fact
remains that from 40 to so per cent
of Iowa's corn is sold as corn and
not as feed, and that for long time
It has had to be sold at figures that
represent an actual dollarand.cent
loss to the farmer who raises 1t.
That means that thousands of corn
belt farmers are finding 1t impossible
to make both ends meet. That Is
why they demand that, by hook or
by crook, some agency De 1ouno 10
help them out Of their plight to re-
lieve which ordinary supply-and-de-
mand conditions have proved insuffi-
cient.
THE overwhelming and insistent
need is for removal, by some method.
of the surplus crop. The farmer
needs outside aid in effecting that re-
moval, where the manufacturer does
not require 1t. The manufacturer can
control and regulate his output to
suit market conditions. But the
farmer cannot. The farmer can limit
the amount of acreage he plants. But
he cannot determine the amount of
grain that will sprout from an acre
or any given number of acres. That
is regulated by factors wholly beyond
his control"
Copyright. 1926.)
Evening star., 1926-03-21
Merchants in China
To Fight Lawlessness

Faced by an alarming increase in
lawlessness, Chinese merchants living
in Chapel, outside of Shanghai's inter.
national settlement, have decided to
form their own protection corps.
Plans have been discussed for the
raising of sufficient funds.
One protective force already exists,
but Chapel merchants at the other
side of the city claim that this corps
does not sufficiently protect their in
terests. Recently the Chinese police
chief, Col. Yen Chung-yang, was
obliged to increase his force, but
owing to the uncertainties of the gen.
eral political situation the increase
was not adsQua.tA. -.. =,
Evening star., 1926-03-21

yerv real sense 1t is only now that the
league is seized with the whole
European problem. .l,.t ,..
And one must perceive that q
rather sudden realization of this fact
explains, in part. the new current In
French feeling. which may be de-
scribed as a reaction from Locarno.
Perhaps 1t also explains why dis
cussion, real discussion. of arms lin1i-
tation Is not taken seriously In Eu.
rope at the moment.
(Copyright. 1926 by the Mcclure Newspaper
SYNDICATE in y. e. -A&,aA6- GnloDaA
Evening star., 1926-03-21
FLAME DUCKS" TO GET
RESPITE In CONGRESS
Constitutional Change Involves Many
Questions, and House Leaders Desire
Long and Careful Study.

This is me first ~ n series Of articles
on proposals 10 amend the Constitution
o. kbs limited States affecting the terms
presidenf
Evening star., 1926-03-21
HAROLD B. ROGERS.

w YHAT became of all the war prof
n I teers'? .
wv Who does not remember the hue
and cry that went up from all sides
Evening star., 1926-03-21

Continued on Third Page.)
Evening star., 1926-03-21
BY WILL p. KENNEDY.

THE Norris amendment and the
White amendment. proposing
changes in the Constitution
Il of the United States, osten-
Sihl1- tn a holiSh the 60 .ca lied
Evening star., 1926-03-21
BY FRANK ii. SIMONDS.

The longer one stays in
- Paris the greater Is the Inn
preston not only that the drift
l. away from Locarno is most
Evening star., 1926-03-21

~ ORN-EEIT boosters Of radical
farm-relief legislation in Con.
gress are discounted by evi-
~ dence from back home" that