Evening star., 1934-02-18
ARMY GOODS DEAL
FOUND NOT LEGAL
Opinions of Record at Time
of SiIverman Proposal
Revealed.
BY REX COLLIER.

The so-called Silverman contract
to exchange privately owned under
wear for military supplies, which
cost the War Department $4,000, 600
negotiations for which are being in
vestigated by the grand jury-would
have been illegal, according to rul-
| ings brought to light since launching
of the inquiry.
The proposed trade originally was
blocked by general staff officers on
another ground-that the Govern
ment would lose millions of dollars
of defense supplies by the deal.
1t was only recently that investi-
eating officials found the proposal
would have violated legal opinions
of record at the War and Justice De-
partments, it was learned yesterday.
Joseph Silverman. jr., New York
trader, last week reminded Secretary
of War Dern that he (Silverman)
some weeks ago signed contract to
trade 900 suits of the underwear,
previously purchased from the War
Department, for Surplus" military
SupplieS-and he served notice on
Dern that he expects the department
to go through with the agreement"
Earlier Silverman Proposal
The most recent legal ruling against
such an exchange of goods, United
States Attorney Garnett is reported
to have been advised, was made by
the office of the judge advocate gen.
eral Of the Army in passing on an
earlier proposal of Silverman in con-
nection with the New Workers. efforts
to dispose of clothing he had bought
from the Government
Before that, an Attorney General
in a previous administration had
ruled that an exchange of property
that involved a change Of title from
the Government required specific
authority Of Congress.
Apparently these rulings had been
overlooked in the negotiations which
led to the signing by Silverman of a
paper now the object of intensive
study by the grand jury.
Witnesses were subpoenaed yester-
day for further questioning tomorrow
on the trading proposals. phase that
already is said to have developed SEN
sational angles.
At the same time it became known
that Ralph T. ONeil, former national
commander of the American Legion,
has requested, through his attorney,
that he be permitted to appear before
the grand jury before it concludes its
oceedings-probably toward the end
Of this week.
RenueSt tn Re Presented
The request. made to Garnett by
John Lewis Smith, O'Neils counsel,
will be conveyed to the grand jury
tomorrow for such action as it may
see f1t to take, it was learned.
Asked as to O'Neils interest in the
proceedings. Smith explained that his
client was connected with" certain
matters now under investigation and
desired a hearing. If ONen is per-
mitted to testify he will be required,
like other witnesses, to sign a waiver
of immunity from prosecution, 1t was
stated at the court house.
The plan of Silverman to work a
trade" it was disclosed yesterday,
followed a ruling by the War Depart
ment that prevented Silverman from
selling back to the department any
of his underwear or other goods pre-
viously acquired from the Gov
ernment
The order which barred resale OF
such goods was issued nearly year
ago, at time when Silverman was
endeavoring to sell back to the War
Department 10000 raincoats for use
in the Civilian Conservation Corps
camps. The order simply said: mo
supplies that have been sold by the
Government will be repurchased by
any agency of the War Department.
Much Equipment Involved.
Under the swap" plan, Silverman
was to receive for his 100000 suits OF
underwear large quantities Of saddles,
brides. tent covers and other mill
tary equipment stored in Army ware
houses. When the general staff
learned of the proposal it objected be-
cause it felt the exchange was not
q fair one. Silverman, in recent let
ter to Secretary Dern, contended the
trade would have been advantageous
to the Government.
Important new evidence is sched-
uled to go before the grand jury when
it resumes deliberations tomorrow.
Identity of witnesses summoned to
testify is being closely guarded by
Garnett and Assistant United States
Attorney David Pine, who is conduct
ing the grand jury inquiry.
Harry H. Wooding. Assistant Secre-
tary of War, has Cancelled a speaking
cnpapement At Topeka. KanS., next
Wednesday in order to make a sec
ond appearance before the grand jury.
Mr.. Woodring told The Star last night
he had decided to remain In Washing
ton until this thing is over"