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

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"
Maj. Gen. Foulois was distinctly not
involved in the report with the graft
charges.
Leslie c. Garrett. Federal District
Attorney, said today that IF con-
oltions are as I understand they
are, 1 shall present the committees
evidence to the Grand jury"
He referred specifically to COM
mlttee charges that high ranking
officers, other than General Foulois.
had accepted loans of money or
gifts from lobbyists in return for all
legged information regarding Army
contracts.
General Foulois' case was sepa-
rated by the committee from those
involving unnamed high ranking
officers" The veteran fier who
heads the Air Corps was accused
last June by the special Investigate
ing subcommittee of "willfully and
deliberately violating existing law IN
the purchased of airplanes and air.
craft material" His removal was
asked on this basis ad others, in
Guiding a finding by the committee,
that he accused superior officers
of willfully attempting to dyeceive"
the committee.
Loans, Gratuities Charged
A dramatic although nebulous
picture of widespread lobbying &C
Invites in connection with Govern
ment contracts was presented by
the committee in its report.
Loans of money and gratuities Of
various sorts have been offered Off
Gals for advance information, the
report said, adding that the con-
dition existing was "deplorable,"
detrimental to national defense eff
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 AZ 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 FIayed
Government business has thus too
often been carried ION in hotel
rooms. Hobbies and private homes
of Government officers and lobby
ists," said the report, adding that
the contract methods used have
had tendency ito corrupt weak
Government officials as we'll as
dealers and contractors"
Legislation and new Army regula-
tons 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 ofici-
us involved in suspicious contract
deales 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.
FouIOis Case Separate
Gen. Foulois' case, entirely sepa.
rate from that involving graft
charges against high ranking Arrnv
centered entirely on devel-
opments in the inquiry of last
spring In a preliminary report al
that time the committee demandeo
Gen. Foulois' removal on -four
counts, mainly involving alleged
in his testimony at
secret sessions. Secretary Dern had
refused to act until after conferrine
with the committee two weeks ago.
The report said that Mr.. Dern.
after his appearance Dec. Is in
with Gen Douglas Mac
Chief of Staff, and Harr~,
Woodring, Assistant Secretary az
War, had ordered the Inspec-
tor General to initiate promptly a
and complete investiga-
ton into the facts" concerning Gen.
Foulois.