The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-12-29

contract negOtlat0rS.
1t involved two high Army
officers (unnamed), and re-
vealed that Maj. Gen. Benja-
min D. Foulois, chief of the
Army Air Corps faced a
sweeping investigation by the
Army Inspector General into charges
of the committee that he had been
inefficient" and testified falsely.
Mai. Gen. Foulois was distinctly not
involved in the report with the graft
charges.
Leslie c. Garrett, Federal District
Attorney. said today that If con-
ditions are as I understand they
are. I shall present the committee S
evidence to the Grand Jury"
He referred specifically to COM
mittee charges that high ranking
officers, other than General Fouiols'
had accepted loans of money or
gifts from lobbyists in return Tor al
legged information regarding Army
contracts.
General Foulois' case was sepa-
rated by the committee from those
involving unnamed high ranking
oficers." The veteran flier VINO
heads the Air Corps was accused
last June by the special invesugat-
ing subcommittee of ''willtully ana
deliberately violating existing law III
the purchase of airplanes and ar
craft material" His removal was
asked on this basis and others, m
Guiding a finding by the conmlUtee'
that-"he accused superior otnceIs
of willfully attempting TO deceive
the committee.
Loans. Gratuities Charged
A dramatic although nebulous
nict,Ire of widespread lobbying &C
tivities in connection with Govern
ment contracts was presented py
the committee in its report
Loans of money and gratmtles OF
various sorts have been offered OH
Gals for advance information" the
report said. adding that the con-
dition existing was "deplorable,
detrimental to national defense en-
cheney and tended to bring the
complete Government procurement
system into disrepute."
One high ranking officer the COM
mittee said had burned at his home
a secret contract specifications docu-
ment after showing it to an inter
ested dealer. Another, the report
alleged, conferred with a fugitive
from Justice, knowing at the time
the sought-for lobbyist was wanted
for questioning by the committee.
The report indicated the officer had
sought the conference to silence
possible production of evidence
showing he had obtained an alleged
$500 loan from the fugitive.
Contract Methods Played
Government business has thus too
often been carried ION in hotel
rooms, lobbies and private homes
of Government officers and lobby
lists" said the report, adding that
the contract methods used have
had a tendency ito corrupt weak
Government officials as well as
dealers and contractors"
LEGISLATION and new Army regula-
lions were recommended by the
committee to center Army contract
responsibility and to make COM
petitive bidding more prevalent, es-
pecially so in the case where stand
ardized equipment could be bought.
Legislation to extend the statute Of
limitations beyond three years in
connection with Government Off
Gals involved in suspicious contract
deals was urged.
The committee, it was understood,
kept the names of officers involved
secret. in order not to hinder the
War Department inquiry ordered by
Mr.. Dern on Dec. Is. However, it
was understood that the evidence
assembled in the secret hearings
would be turned over to the District
Attorney for possible submission to
the January Grand Jury.
FOulois Case Separate
Gen. Foulois' case, entirely sepa-
rate from that involving graft"
charges against high ranking Army
officers, centered entirely on devel-
opments in the inquiry of last
spring In preliminary report at
that time the committee demanded
Gen. FouIOis' removal on four
counts, mainly involving alleged
discrepancies in his testimony at
secret sessions. Secretary Dern had
refused to act until after comforting
with the committee two weeks ago.
The report said that Mr.. Dern,
after his appearance Dec. 13 in
company with Gen. Douglas Mac
Arthur, Chief of Staff, and Harry
Woodring, Assistant Secretary of
War, had ordered the Inspec-
tor General to initiate promptly a
searching and complete investiga-
ton into the Facts" concerning Gen,