Imperial Valley press., 1934-01-22
PREDICT MORE
ARRESTS OVER
.CWA SCANDAL
Charge Workers In Los Angeles
Forced To Pay Commission
For Jobs.
PLAN GRAND JURY QUIZ
Federal Officials To Make
Far-Rhaching Investigation OF
Situation.

LOS ANGELES, Jan. %. tU.P)-A
charge that many CWA workers.
whose wages averaged around SIS
week, were forced to pay as high as
so cents a day in illicit commissions
to hold their jobs, was made to
federal investigators today.
The purported new evidence in
the far-reaching investigation au-
thorized by Washington was re-
vealed as United States attorneys
predicted numerous additional ar
rests this week.
Already two women are under ar
rest accused of collecting "broker-
ageo from truck owners who were
given CWA work.
Rumors that high county officials
had been connected with the CWA
scandal, current here today, we're
denied by federal investigators.
But scope of the investigation
was broadening to such an extent
that Charles Carr, assistant u. S.
attorney, was recalled from San Di-
ego to aid his co-worker, William
Fleet Palmer, in delving into whole
sale commission racket charges.
1t was learned on good authority
that affidavits had been obtained
from numerous CWA workers charg-
ing they had been forced to pay
high commissions to alleged "brok-
ers' in order to get work orders
assigning them to various projects.
Certain individuals outside of the
CWA were said to have gained pos
sessions of hundreds of work or
ders.
LOS ANGELES, Jan. %. U.p)-A
major scandal that may reach high
into local political circles was hint
ed today as federal authorities pro-
ceeded with an investigation into
Los Angeles operations of the Civil
Works Administration that already
has produced two arrests.
Reports of death threats came
simultaneously from the Independ-
ent Truck Owners association which
exposed an alleged brokerage
fee racket, resulting in the arrest
of two women.
eff the evidence develops as we
think it will, there will be a good
many arrests before the case goes
to the federal grand jury" William
F.. Palmer United States district at
torney, said.
His chief, District Attorney Peir-
son M. Hall. said a "vast accum-
ulation of complaints regarding
CWA operations was in his possess
sion and would be presented the
grand jury. Orders for a sweeping
inquiry "regardless of who may be
affected came from the attorney
general s office at Washington, Hall
declared.
Nothing will be overlooked, he
added.
The death threats were received
by Jack Francis, a member of the
Independent Truck Owners associa-
ton, who said he was warned by
telephone caller to clay off if you
know what IS good for you.''
1.-The CWA truck brokerage pro-
gram was not being conducted by
uuilpDsllS DuC Dy men IN nigh pO-
litical circles who knew how to take
care of themselves in the clinches,'
Francis said another call advised
him.
Frances was instrumental in
bringing about the arrests of Miss
Laurette Hasker. "a. assistant to the
Los Angeles county CWA purchas-
ing agent, and Mrs. Emily C. Pad
dleford, 43. A complaint charged
them with collecting "commis-
sions' and brokerage fees, in
exchange for CWA work orders is
sued truck operators. Both denied
the charges.
The current investigation was
proceeded by a shakeup in the per-
connel of the local organization.