Evening star., 1943-08-22
War Frauds Unit Hot on Trail
Of Defense Contract Chiselers
By Marqais ". ChHds.


charges brought by the Department of
Justice.
The Anaconda Wire e. Gable Co is in
volved in another charge through indict-
ment of William H. Morley, manager;
Jacob Eagleson, plant superintendent,
and three other officers of Anaconda's S
Pawtucket, r. l., plant
Two somewhat similar cases are being
handled not by the war fraud unit but
by the criminal division of the Justice
Department. The Bohn Aluminium e.
Brass Corp. and three of its officers we're
recently indicted on charges of sabotage
and conspiracy to detraud the Govern
ment. The indictment charges that nu-
merous defective castings" were taken
from the scrap pile to be welded or other
wise repaired and delivered for use in
airplane engines as meeting all specifi-
cations.
Such welded castings, particularly
when used in the supercharger of plane
engine, are very great hazard. Under
high temperatures the YIELDS give way
and an explosion is probable. Here, as in
the instance of Anaconda, profit was
definitely the motive since the rejected
castings were worthless while when
welded they brought the contract price.
Three months ago the president, the
plant manager and five other officers of
the National Bronze and Aluminium
Foundry Co. were indicted on similar
charges. This company is one of the
largest manufacturers of aluminium cast
ings in the United States The Justice
Department estimated that in one five
day period the company saved approx
mately $4,000 by welding castings which
would have been otherwise rejected.
In several cases trade union officials
have been indicted. -Four members of
the International Union of Operating
Engineers, AFL, were indicted on a
charge of conspiracy to violate and vio-
lating the Federal antikickback statute.
The Government charged that they
made workers on the Army Regulating
Station at Voorheesville, N. Y, obtain
daily permit cards'-$2 a day for oper-
ators and ST for oilers, helpers and
mechanics-before being allowed to work
This amounted to $4,000 during the
eight months covered by the indictment.
Accused of Food Fraud.
Often very small amounts are involved
At Abilene, Tex, Sergt M. r. Peterson
of Camp Barkeley, Tex and " R. Allen
and Robert F. Bean of Abilene were
charged with conspiring to defraud the
United States of approximately $4,000 by
submitting fictitious invoices and other
claims for food supplied the camp hos
pital Shortly after being served with
warrant, Allen committed suicide.
At Panama City, Fla, the Government
was charged $6,504 for sand clay which
WasFiever delivered. Two individuals and
a contracting company of Jacksonville
were indicted as a result of an FBI in
vestigation. At Shreveport, La, Federal
jury indicted Arthur j. Cote and his
wife on charges of defrauding the Gov
ernment of approximately $4,000 in the
rental of equipment used in the con-
struction of the Louisiana Ordnance
Plant at Minden, La.
One of the most complicated cases in
volved Triumph Explosives, Inc, of Elk
ton, Md Altogether Is indictments
have been returned charging conspiracy
to defraud and use of the mails to de-
fraud in connection with Army and
Navy munitions contracts held by the
company. Last october, on order of the
President, the Navy Department took
possession of the Triumph plant follow
ing Navy investigation which disclosed
numerous instances of bribery and other
Irregularities estimated to have cost the
Government more than $1,00o,00O.
With occasional exceptions, when
Army Or Navy act on their own initi-
ative, all the investigation is done by
the FBI. A constant stream of FBI re-
ports comes to the war frauds unit.
Tom c. Clark, chief of the unit, and
Darsey, his first assistant, decide which
cases are to be followed up with a COM
plete investigation.
The war frauds unit has % lawyers,
drawn from the criminal and antitrust
divisions here in Washington In addi-
ton, there are field offices in cities where
there is a concentration of war plants,
including one in both Kansas City and
st. Louis.
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