Evening star., 1935-07-20
GRAND Jury PROBE
H|NTED IN ARMY
CONTRACT LOBB|ES.
Military Affairs Committee
Weighs Testimony of Law
yer Paid by SiIverman.
CRIMINAL PROCEEDINGS
LIKELY, SAYS McSWAIN
Plot to 0bstruct Justice Believed
Unearthed in Hearings Held
Recently.
BY REX COLLIER.

Another grand jury investigation OF
contract lobbying at the War Depart
ment was seen as a possibility today
as the House Military Affairs Com
mittee weighed testimony that the
lawyer for "key" witness for whom
the Department of Justice was search
ing received envelopes containing
money from Joseph Silverman, then
under inquiry by the grand jury.
The lawyer, identified by the COM
mittee as Harold Schneuer of New
York City, was supposed to be turn
ing the money over to Frank z.
Speicher, it was testified, at the direc-
ton of A. Mitchell Palmer, wartime
Attorney General, who was attorney
for Silverman. Speicher, tire sales
man, was wanted for questioning by
the grand jury.
The testimony came from Thomas
Jefferson Ryan, New York lawyer and
friend of Silverman. Ryan rocked
the committee yesterday by declaring
under interrogation that Speicher had
telephoned him several times during
the justice manhunt.
Criminal Proceedings Hinted.
Possibility of criminal proceedings
under the laws making it felony to
obstruct justice was hinted by Chair
man McSwain of the committee.
"If some Of these things are true"
McSwain said after Ryan's testimony,
1T looks to me as though there was a
plot to obStruct justice"
Conflicting testimony by an earlier
witness before the committee is being
studied by the committee with view
to considering advisability of prosecu-
tion for alleged perjury, another mem
Der of the committee disclosed.
The committee meanwhile will await
testimony at its next session Wednes-
day by Dennis Mahoney. New York
City policeman, who, McSwain as
serted, received a $3.50 check from
Silverman last March. Silverman,
when questioned about this check, said
the policeman frequently helped him
cash checks.
In Touch With Garnett.
The House committee has been in
close touch with United State Attor-
ney Leslie c. Garnett's offce during
the long investigation Of Army con-
tracts. As result of information un-
covered by the committee. Col. Joseph
I. McMullen, former chief of the
patents section Of the judge advocate
generals Office, was indicted recently
on a charge of receiving fees from
private business firms having rela-
tions with the War Department.
Speicher, who finally was located
by j. Edgar Hoover's agents in New
York City about six months ago, gave
testimony before the House committee
that led to the court martialing of
Col. Alexander E. Williams, formerly
a general officer and one-time acting
quartermaster general. Col. Williams
was convicted Of accepting a $2,500
loan from Speicher, who was endeav-
oring to sell the Army leak-proof
automobile tubes,
In his testimony yesterday, Ryan
said Speicher called him by telephone
three or four times and told him he
was "in trouble" and that he was
being hunted in connection with a
matter involving an Army officer.
Ryan declared he told Speicher each
time he was not interested in his
troubles and advised him to give
himself up" Pressed for the identity
of the Army officer mentioned by
Speicher, Ryan agreed with McSwain
that it was Col. Williams.
Tells of Meeting.
Ryan testified also that Speicher
and Col. williams held a meeting in
a New York hotel just prior to the
officers court martial. Further details
on this meeting were not revealed.
Speicher's testimony before the court
of generals prompted the court to
sentence Col. Williams to be dismissed
from the Army.
Nathan Silverman, q brother Of
Joseph, has been summoned for ques-
tioning by the committee next We'd
| uesday. He will be interrogated about
sums totaling nearly $500,000 aIleg-
edly spent by the Silvermans during
their efforts to obtain surplus Army
goods contracts from the War De-