Evening star., 1934-02-06
Grand Jury Acts After Jo-
Seph Si|verman Is Barred
From Bidding.
EXT0RTI0N Is CHARGED
IN SURPLUS SALE PLAN
Woodside, Former Aide to Mccall,
Summoned by Leslie c.
Garnett.
BY REX COLLIER.

An alleged conspiracy to defraud
the Government of more than $1,000
600 in connection with the purchase
Of 1000 motor trucks with public
works funds was being investigated
today by a Federal grand jury here.
The inquiry followed announcement
of the barring from further Govern
ment contracts of Joseph Silverman.
New York dealer in surplus war sup
plies.
Assistant Secretary of War Harry
H. Wo0dring, who has turned over to
the Department of Justice certain in
formation bearing on efforts of Silver
man to sell the War Department mo-
tor trucks. woolen underwear and
raincoatS, was the chief witness ques-
toned by the grand jury.
Barred BY Department.
WoOdring previously had announced
SllVerman was persona non grata al
the War Department and had banned
him from submitting bids for any
Government contracts.
j. V. Woodside, former assistant
to Controller General McCarl ana
now sn official of the General Motors
Corporation, also was summoned to
appear today by Leslie c. Garnett,
United States attorney
The controller generals office. while
WoOdside was in the service. is known
TO have investigated activities of Sill
verman Bros. New York concern of
which Joseph Silverman is a partner.
and to have branded a proposal of
Silverman to sell back to the Gov
eminent surplus war underwear as
"eXtort!onate and uncCnScionable
Complained TO President.
The proposed motor truck purchaso
which precipitated the grand juy
proceedings was to have been maze
from the slO,OO0OOO allotted by III,
Public Works Administration to the
War Department for mctor.zation OF
the Army, it is understood.
Department of Justice inquiry is
reported to have been launched nlsLg
than week ago as a result OF COM
plants made to the White House.
Members of the House Committee
on Military Affairs also are reported
to have conducted a secret inveStiga-
ton of reports that "a scandal was
brewing" in connection with plans for
acquisition of the thousands of motor
vehicles required by the War Depart
ment.
Explains Investigation.
The Department of Justice late last
night, after an all-day series Of con-
ferences between William Stanley. as
sistant to the Attorney General;
Wooding and other officials. issued
this cryptic statement:
The Secretary Of War referred TO
the Attorney General for considera-
ton certain matters in reference to
activities on the part of one Joseph
Silverman and his associates in regard
to War Department purchases.
The facts have been carefully in
vestigated by the Department of JUS
tice and as a result of such investi-
CATION the Attorney General has for
warded the evidence 20 United States
Attorney Garnet for presentation to
the grand jury
Several Days Required.
Garnett refused to discuss details
of the proceedings. but said witnesses
were being summoned here from dis
tant points and the inquiry would re-
Quire several days
There were reports that activities
of a number of so-called lawyer-lob-
byistS may be scrutinized by the grand
jury.
Silverman could not be reached for
comment. He maintains an Office at
the Mayfower Hotel and resides in
Chevy Chase
Woodring's order barring him from
department contracts, follows:
Effective this date, Mr.. Joseph Sill
verman, his firm or firms and attor-
neys and agents representing him are
Continued on Page 2, Column 81