Evening star., 1934-04-19
ARMY CONTRACTS
CONDITION FLAYED
BY GRAND JURORS
Seven Conclusions Reach.
ed in Special Report lust
Made Public.

Continuation of a condition in the
War Department which gave color
to the belief that influence was val
liable" in negotiating for Army con-
tracts was excoriated in the special
report sent recently to President
| Roosevelt and Secretary Dern by the
grand jury which investigated alleged
irregularities in Army procurement.
Administrative and legislative ac-
ton, if necessary, Ito prevent political
lawyers from presenting claims for
clients to the friends Of such lawyers
in high public Office was recon-
mended.
The report, which heretofore has
not been made public, and issuance
of which was criticized by Justice
Peyton Gordon as unauthorized, lists
seven conclusions" reached by the
grand jury as result of its prolonged
inquiry-which ended in no indict-
ments.
Among these findings were that dis
sension existed between the general
staff and the Assistant Secretary of
War. that there were "pernicious"
practices by corporations and persons
outside the War Department in con-
nection with sales or attempted sale
of alleged influence" that prices for
surplus Army property were incon-
siStent, that there was "reprehensible
conduct" on the part of a large motor
manufacturer seeking an award, and
that the practice of negotiating for
surplus war property instead of asking
for bids was partly responsible" for
the condemned conditions.
Submitted to Garnett.
The report. signed by Levin P.
Handy, foreman, and dated March 13.
1884, was in the form of memo
randum for the U. S. attorney" Les
lie c. Garnett. After stating that the
jurors, by majority vote, had decided
to return no indictments, the report
on the jury's conclusions" was sub
mltted to Garnett for transmission to
the White House and War Depart
ment, if the U. S. attorney so desired.
Garnett forwarded copies of the re-
port to the President and the Secre-
tary of War that same day, and also
sent a copy to the Department OF
Justice for its information. A copy OF
the report and the transcript of testi-
mony by the two-score witnesses who
appeared. under waivers of immunity
before the grand jury later were sup
piled the House Military Affairs Com
mittee.
The proceedings we're launched as
the case of the United States VS..
Joseph Silverman ct al" Silverman,
long known at the War Department as
dealer in surplus war supplies. did
not testify, but long list of War
Department officials with whom ne
had dealt, directly or indirectly, ana
procession of automobile company
representatives, lawyers and others
were interrogated over a period Of
several weeks
WOodring a Witness.
Among the more prominent wit
nesses were Assistant Secretary of War
Harry H. Woodring, Gen. Douglas
Macarthur, chieI of staff; Ralph T.
ONeill, former national commander
of the American Legion, and a num-
ber of others high in military circles.
Woodring, whose Office supervises
Army contracts, issued a lengthy state
ment following completion OF the
grand jury hearings, in which he ex-
pressed qualification over the outcome
and defended his procurement meth
ods and policies.
In his press Statement, issued be-
fore he had seen the grand juryis
special report, Woodring also said:
'Scurrilous statements and in
situations have been made to the
effect that serious conflicts existed
between the Secretary ot War and
myself, and between the CHIEF of staff
and the general staff and myself
There is no foundation whatever for
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