Detroit evening times. (Detroit, Mich) 1921-1958, 1944-06-05
i. ). Indicts
Ex-Ford Aides
Continued from Page One)

ttOuttUueO IFUfU hkc OUtJ
cused on the defendants and theil
designing companies months ACC
when complaints began to increase
that numerous Detroit tool firms
were coerced into giving their de-
signing work to the Affiliated En-.
cheering Co. in order TO obtain
Ford contracts.
The evidence that resulted in
the indictment was presented "a
the jury by Asst. u. S. Atty.
Thomas p. Thornton and Stewart
Kerr, special assistant 10 the u. 5.
attorney general in charge OF the
war fraud offices in Detroit.
This case IL one Of the
worst war fraud violation situa-
lions we have ever had In this
district" declared Kerr. And
u was the greed Of these men
that actually brought about
their downfall"
Coincident with the indictments
Assistant u. s. District Attorney
Arnold Lungerhuasep filed in fed
eral court two civil suits, one
seeking TO recover $4,000 from
those named and one seeking S.
600 recovery from Andrew Kali
man.
HINT NEW CHECKUP
II was learned in Washington
that Attorney Gen. Tom C..
Clark has indicated that there
might be a complete checkup on
the designing services of the Ford
Company. particularly with re-
spect TO transactions in the Ford
purchasing department.
The in d ictmen [ specifically
charges that Crysler. who was in
charge of all tool designing that
went into the work on the bomb
ers turned out Al the Willow Run
plant, and Joseph Kalman. his
FIRST assistant. with the aid OF
Pierce, who was an official in the
Ford purchasing department al
that time, did by suggestion,
intimidation and coercion per-
susde intermediate shops 10 give
their tool designing work to the
affiliated company
The indictment also sets forth
that Crysler had accepted numer-
Gus expensive gifts and had been
furnished heavy expense advances
during the time he was handling
accounts for Affiliated.
THEY ALL RESIGNED
Kerr revealed that Crysler.
kalman and Pierce all resigned
from the Ford Motor Co. Al the
time the Truman committee was
investigating war frauds in the
Detroit area
"At the time the Willow Run
production was getting under
way" Kerr said in explaining
the alleged method Of opera
ton OF the accused men. "the
Ford company was letting nu-
merous contracts for the design
and manufacture Of the machine
tools needed In the bomber
plant
THE method ~ operation
was simple" continued Kerr.
"In each instance when an in
ternediate shop complained that
~ could not design the needed
tools, II was suggested that the
work he taken To affiliated. If
the Job didn't 20 to Affiliated
the Ford contract WAS moi
forthcoming.
The pay roll and time slip vio-
lations were uncovered. ~ is
charged in The Indictment. when
IL was found that draughtsnen IN
the employ Of the Ford company
were told by CrySler and Kalman
TO use part Of their time for Affili-
ated work.
BILL PAID BY FORD
Their time AZ tho Ford plan,
waf paid for in fun by Ford and
in addition. timeslips were made
out by the affiliated and again
charged to Ford, which paid the
bill.
The Indictment also charges
thst srs0ghtSmen were secretly
recruited 10 do work for the affili.
sted A. home. Time slips for
these Jobs were made out by Tho
affiliated and presented ~ ihs
Ford company for payment, which
vas collected.