, 1934-12-30
WASHINGTON
BY George Durn0

supplies has been uncovered in the
House Military Affairs Committee
at a series OF secret hearings.
Word comes out Of the committee
that members are preparing a re-
port for submission to the new
Congress recommending sweeping
changes in the present system OF
Army procurement.
Two Assistant u. 8. Attorneys
sat with the Committee-or sub
committee OF 8 TO Oe exact@during
the executive sessions. UnqueStion-
ably they will present the evidence
OF official corruption they there
heard 10 the Grand Jury. Indict-
mentS were nearly obtained last
spring on the basis OF preliminary
findings Of the Committee. Evid-
nee adduced during the past month
makes criminal action much more
probable IN the opinion Of legal
authorities.
OfficerS-The committee report
is still in course OF preparation but
II is learned that at least two War
Department officials accepted
loans" or gifts Of cash from lobby
lists or business agents interested In
procuring contracts. Entertainment
OF officials was lavish and in GER
tain instances the officials actually
invited themselves to be wined and
dined.
Following a devious trail that led
through hotel rooms and the private
homes of both lobbyists and gov
eminent officers. the Committee
learned that one high officer took
certain specifications home with
him and burned them IN the pres
ence OF a business agent. The effect
OF the destruction OF these Specifi-
cations was TO eliminate a big
motor dealer from competition.
An army officer. while still on
active duty IN the War Depart
ment. hired himself out as a lawyer
in a patent claim case and settled
ID 20 successfully the government
paid out S7.000,0O0 more than neces-
Sary.
MethOds-An amazed committee
was told how one Official borrow
ed" $500 on a 6-month note pay
able to bearer from a notorious
lobbyist. At a time when this lob
byist was being sought by the Dep
artment OF Justice the official con-
tacted him in New York and tried
unsucceSsfully TO get possession Of
the note-without repaying the 81
500. The official ignored the fact
that his b~enefactor was a fugitive
from justice az the time and made
no effort TO turn him over 10 the
authorities or tC advise the Milit-
airy Committee OF his whereabouts.
Inspection officers, Il was learn
ed. we're influenced In their deci-
sions through the granting OF very
| special discounts and highly favor
their personal use.
Reputable concerns which had
failed 10 engage any Of a special
ring Of lobbyists were written Out
Of specifications. thus effectively
destroying legitimate competition
as provided BY Law.
Humor-Seeking to keep all Of
the Juicy business between them. a
group OF lobbyists or business agents
got together and agreed on which
should have which contracts. III
proven in court. this Will constitute
conspiracy to destroy competition
which il expressly provided for IN
the law.
A humorous touch was added to
the star chamber proceedings when
one lobbyist ruefully was forced TO
admit he had gypped his COMPANY
on the expense account. He had
claimed to have extensively enter
tanned several reputable officials OF
the War Department with whom he
actually had had no contact.
Less humorous. the committee
found that this same agent In some
fashion had obtained advance in
formation from the committees
own files as to the course the in
veStigation was 10 pursue. There
after this agent went In advance OF
committee investigators and made
il most difficult for them TO obtain
vitality important evidence.
PerSOnneI-One method OF frcez-
ing certain concerns out Of compe-
tition for War Department business
was TO delay issuing invitations TO
bid until the last minute and then
telegraph them. Presumably a Ia
vored company, armed with ad-
vanced information as TO necessary
specifications, was the only one
able TO get a comprehensive bid IN
under the wire.
Until the Military Committee
started its investigation. only one
company was eligible under Army
specifications TO bid on the lighter
types OF motor vehicles. This has
since ben changed but until II was
the government paid high prices.
Other bad practices also nave
been eliminated by the Wal Depart
ment as the committee uncovered
them but rectifying legislation sim
is needed in the opinion OF tne
members.
Those who waded through the
huge mass OF evidence over a period
Of almost a year were Reps. William
N. Rogers Of N. n, subcommittee
f, chairman. Lister Hin OF Aha, Numa
+ Monet OF La. and Dow II. Hart
er Of Ohio, all democrats; Paul j.
Kvale. OF MINI, farmer-laborite,
and Charles A. Plumley OF VT. w.
Frank James OF Mich. and Edward
w. GoSs of Conn. all republicans.
James and GOSS were defeated lot
reelection last November but, ad-
herring to a win-or-lose agreement,
returned to Washington for the
final and most spectacular stage OF
the inquiry.
Keystones-Veteran labor ooSery-
erS predict there will be a textile
strike about May / but do NOT a.
this time anticipate a walk-out IN
| either the steel or auto industries.