Evening star., 1934-12-29
House Committee Charges
Corruption and ReneWs At.
tack on Gen. FouIois.
TWO INDICTMENTS FOR
ACCEPTING FAVORS SEEN
Report Tells of Loans or Gifts
to at Least Two War Depart
ment Officials"
BY the Associated Press.

A grand jury inquiry was ir pros
pect today as result of the House
Military Affairs Committees charges
Of "deplorable" lobbying in the War
Department and corruption Of Gov
eminent officials.
If things are as I understand they
are, certainly shall present the in
formation to the grand jury" United
States Attorney Leslie c. Garnet tolo
the Associated Press.
The Military Committee, reporting
yesterday to the House after a nine
month investigation, also renewed its
attack on Maj. Gen. Benjamin D
Foulois as chief Of the Army Air CORDS
He was not involved in the lobbying
or corruption charges, but the COM
mittee recommended that he be re-
moved on the grounds that he
violated existing law" testified
falsely" and said the Army could fly
the mail last Winter when he should
have known differently"
The War Department inspector
generals Office, at the direction OF
Secretary Dern, already has instituted
study OF the Foulois charges and its
report is expected soon. The COM
mittee report said such action is tn.
usual step preliminary to placing such
matter before military tribunal"
Expect Two Indictments.
Congressional Investigators, COM
menting on the other phase of thei,
report, said they expected at least two
indictments for accepting favors from
and giving favors to concerns repre-.
sented by lobbyists. Meanwhile, they
declined to mention names for fear
they said, they might give away the
district attorneys case.
Testimony had been placed before
the committee purporting to show
Army officers aided lobbyists for Ger.
tain concerns and that specifications
had been altered for the benefit oi
the companies.
The committee report told Of "loans
or gifts to at least two War De-
partnient officials in high positions. .
But It centered its criticism upon mer
outside the department.
Lobbyists" the committee reported
were employed by manufacturer.
almost solely by reason of their SUD.
posed ability to make special contact.
with Government officials and to Sc
cure special consideration or advance
information for their employers"
Special Consideration.
In some instances, the committee
said, lit is undeniable that corrupt
business agents have sought and oh.
tanned special consideration and in.
formation from dishonest and veal
Government officials" though the re.
port added that such improper anc
undue influence is actually exerted ir
relatively few cases"
1t said high official in the Office
Of the judge advocate general of the
Army" sought and obtained ''fees from
private corporations In matters which
related to his official duties" It de-
clared in addition that the activities
Of one officer may have caused the
Government to maintain an unwar-
ranted loss on one class Of claims, OF
approximately $1,000, ,OO0."
The FouloiS accusations were CEN
tered about his approval of "nego-
tiated" instead of competitive" con-
tracts for airplanes. The COMMITTEES
contended that the 1926 aircraft de-
fense act required competitive bidding
for War Department quantity con-
tracts. Foulois and other Army off,
GERS held the law permitted them tc
ask individual companies to supply
airplanes in quantities provided nc
other source for the needed planes
was available.
Law Violation Charged.
Recalling its recommendation last
May that Foulois be ousted, the re-
port said the Recommendation stands
for what it Is worth" It summarized
the previous report as finding:
l. Maj. Gen. Foulois willfully anc
deliberately violated existing law il
the purchase of military airplane'
and aircraft material.
2. He accused superior officers o
wilfully attempting to deceive thi'
committee
3. He testified falsely before tn,
subcommittee as to his opportunity
and authority in presenting Air Corp.
needs to the director of the budget
4. He advised the Second Assist.
ant Postmater General that the All
Corps was prepared to fly the air.
mail when the record shows that HI
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