Evening star., 1942-08-31
Two WPB Aides
Indicted in Deal
For War Tools
Three Businessmen
Also Named With
Dismissed Officials
By HORACE KNOWLES.

W. aioiiIlSoCd w di IlOouCblUIt
Board officials and three dealers
in used machine tools were in
dicted by the District grand jury
today on charge of conspiracy
to violate the War Powers Act by
preventing critically-needed ma
chine tools from being allocated
to war contractors.
The five defendants are:
Robert Blee Rhoads of Indian
apolis and Ralph Lamont Glaser of
New Haven, Conn, former chief and
assistant chief, respectively, of the
Available Used Tool Section of the
Tools Branch of the WPB. Both
were with the WPB six months at
annual salaries of $500 before their
dismissal August 4.
Louis E. Emerman. president Of
Louis E. Emerman & Co, a large
Chicago machine tool firm.
Clarence j. O'Brien and Frank L.
O'Brien, jr., of the O'Brien Ma
chinery Co. Philadelphia, a dealer
in used machine tools for the past 27
years.
Travel Claim Fraud Charged.
The two WPB men, Rhoads and
Chaser, also were indicted on
charges of making false claims for
travelling expenses, stating they
were travelling on Government busi-
ness when, 1T is maintained, they
were travelling in connection with
the deal in machine tools.
The prosecution was requested by
WPB chief Donald Nelson and John
Lord OBrian, WPB general counsel.
The true bill detailing the con-
spiracy charged that Rhoads and
Chaser were the go-betweens in the
disposition by Emerman to the two
OBriens of an option on II idle used
tools. Rhoads and Chaser got $4,000
each as their part in the deal, the
bill charged.
The two Government men, in
their official positions, had the re-
sponsibility of locating all available
used machine tools and channeling
them into the production of war
materials at the earliest possible
moment.
But it was agreed as part of the
conspiracy, according to the indict-
ment, that the two officials would
not report the IL tools as being
available for production. AS a re-
suit, the $150,000 worth of eouip-
ment lay idle six weeks during the
progress of the plot, the indict-
ment stated, adding that such
tools were of dire need in the pro-
duction of war materials"
Once Under Lease to British.
Tom G. Clark, chief of the War
Frauds Unit of the Justice Depart-
ment, said the alleged conspiracy
was entered into at dinner in
Emerman's suite in a downtown
hotel the night of May 10. Present
with Emerman, it was alleged. were
Rhoads and Chaser. The O'Briens
later joined the conspiracy by TAX
ing over an option held on the tools
by Rhoads and Chaser and by try-
ing to dispose of them, according
to the indictment.
Mr.. Clark and three of his crack
assistant prosecutors presented the
case to the grand jury after a
swift investigation. Mr.. Clark's
aldes were j. Frank Gaffney. Pat
Coon and George M. Fay.
In tracing the alleged conspiracy
from its inception, the indictment
stated that the II tools, owned by
Emerman, had at one time been
under lease to the British Purchas-
ing Commission. According to Mr..
Clarke, the II were part of $40 tools
that the commission had leased
from Emerman throughout 1941.
When that lease expired in Febru-
ary, l942, a majority of the 370 were
placed IN the hands of manufacturers
OF the Oerlikon 22-mm. anti-aircraft
gun.
Offer to Sell Tools Cited.
The indictment said Emerman
executed to Rhoads and Glaser an
option to purchase the II tools for
$4,000. 1t was this option that the
WPB men sold to the O'Briens the
next day for $4,000, the indictment
charged. None of the parties in
the deal, 1t was agreed, would report
the transaction either to the ONCE
of Price Administration or the WPB.
The two OBriens, according to
the indictment, telegraphed a man
ufacturer listing the major part Of
the II machines and asking whether
the firm would be interested in pllr-
chasing them. 1t was not stated
whether the manufacturer took the
equipment.
Another overt act charged was
the execution by Clarence j. O'Brien
of two checks for $500, payable to
of two checks for $500 each, pay-
able to Rhoads, and two checks for
$500 and $500, payable to Glaser.
Chaser was delivered $1,000 more in
cash, it was said.
Rhoads Headed Tile Firm.
The maximum possible sentence
for conviction on the conspiracy
charge is two years imprisonment
and fine OF $4,000. The maximum
Tor CONVICTION on the charge OF
false claims for travelling
expenses, placed against the WPB
men in separate indictments. is
10 years imprisonment and $4,000
fine.
Rhoads was president of marble
and tile firm in Indianapolis from
1926 to 194l. In Washington he
lived in the 2400 block of Sixteenth
street NV.
CHASER was employed by used
machine tool companies from 1915
to 1910, when he went with the
British Purchasing Commission as
a technical adviser. He joined the
WPB in January. 1912, as chief in
dustrial specialist and assistant to
Rhoads.