Evening star., 1952-06-07
By George Beveridqe

House investigators today be-
gan evaluating a maze of testi-
mony-including a false implica-
ton of high political interven-
tion-about the Justice Depart
ment's handling Of war contract
fraud cases.
What started out as a mild
sensation fell flat on its face yes
terday. as a former Detroit As
Isistant United States Attorney
told House subcommittee he
falsely linked former Attorney
General McGrath and former
Democratic National Chairman
William M. Boyle to one of the
fraud cases.
The one-day hearing revolved
around General Accounting Office
allegations of fraud in the settle
ment of war contracts. 1t CEN
tered on these. two Detroit cases:
l. A 1916 GAO request for JUS
tice to recover more than $4,000
from the Advance Plating Co.
Officials of the firm earlier were
acquitted of criminal charges. The
case in still open.
2. A GAO fraud claim of ST.
313,358.53 against the Michigan
School of Trades, Inc. which was
settled last year for $125, 900. Tes-
timony brought out that the law
firm of Clark Clifford. former
legal aide to President Truman,
received a $25, 1000 fee in the case.
GAO Auditor Testifies.
The names of Mr.. McGrath and
Mr.. Boyle cropped up when WAL
ter Sprague, a GAO auditor sta
toned at Detroit, discussed a trip
here in April, 1851, with George
F. PETER, then an Assistant
United States Attorney. On
April S, Mr.. Sprague testified,
Mr.. PETER wrote him note say
ing he had attended a party,
visited by Mr.. McGrath and Mr..
Boyle, in the Hotel Statler suite
of B. M. Baur, president of the
Advance Plating Co.
The note also said Mr.. PETER
was to confer the following
morning with Mr.. McGrath, the
auditor said.
A few minutes later, however,
Mr.. Baur took the witness chair
land swore he had not talked with
either of the Democratic leaders
during his visit here.
Then the subcommittee called
Mr.. PETER, a slight man, now
lpracticing law in Detroit. who
shielded his face from photogra-
lphers.
Portion Called False.
Under questioning by Assistant
Counsel D. G. Kennedy, Mr..
PETER admitted he wrote the note
But he said the portion about Mr..
McGrath and Mr.. Boyle was en-
tirely false.
"Are you telling the truth now?"
he was asked.
II am" the lawyer replied.
Mr.. Kennedy did not ask the
witness his reason for writing the
false note and the question never
was settled. Mr.. PETER admitted
he may have decided in his own
mind against validity of the civil
suit against Advance Plating at
the time of his visit to the hotel.
But he stressed he did not tell Mr..
Baur about any such decision.
Assistant Attorney General
Holmes Baldridge, head of the
Justice Departments Claims Divi-
sion, told the subcommittee the
Advance Plating case still is open
largely because of GAO efforts to
have it pushed. He said two in
lquirieS about the case have been
made to the United States Attor-
Iney in Detroit since last Novem-
ber. but no replies have come in.
Mr.. Baldridge, however, de-
Tended as "a very good settle
Iment" the $125,000 compromise
on the $1.3 million claim against
the Michigan School of Trades.
The Justice Department Official
said GAO quite properly" includ-
led every item which might be
questioned in arriving at the $1.3I
million claim. But Veterans Ad-
ministration officials differed with
the audits. They decided the
Government could not recover
more than $141.0 900 if the case
went to court, he said.
"And in such q case we must
s~,l- l. -