Show I INSIDE INSIDE I 1 STUFF B By GEORGE DURNO WASHINGTON Dec 29 A 29 A shock shock- JIng Ing trail o of corruption n and collusion in connection with war department purchase of supplies has been l tr fred red d by th the thc hou house c military affairs committee at al a series of secret hear hear- 1 is s. s k W Word rd comes that members will wil t fJ 1 sweeping chan changes cs in the thc system of army procure J I ment Probe Two assistant U Graft Grift Collusion 5 S. S attorneys s 's sat at In Purchases with the committee commit commit- 7 tee tee tee-or or subcommittee tee e of eight to be exact during during the executive sessions ses Unquestionably they will present the evidence of of of- corruption the they there heard to the grand rand jury lucy Indictments were bearl obtained last spring on the theof is of preliminary findings I of the he Evidence adduced during th the r past month makes criminal ac ac- ti io i much more probable in the cp opinion of legal lecal aut authorities 11 The c committee report has has n not t ben b n fully publicized but it is learned that at al te least two war depart depart- meet p Officials accepted loans or gifts m uta of cash cah from lobbyists or budness bud bud- ness fles arents interested in procuring 5 Entertainment nt of officials 18 wu ivas lavish Pd in certain instances the act actually aly invited them them- r to be wined and dined n a devio devious trail that led hn hotel ro rooms ms a and d the private of ot both i lobbyists and govern govern govern- officers 5 the committee learned that o ne high r look tOOK certain h home with him and burn burned them In la the presence presence of a 3 business age agent n t. t Officer The effect of the COlts des tr u c t i n theol ol of l lons the these specifications dealer from comp competition A AM was vas to eliminate a A n arm army officer while still on Ch c duty in the thc war department hired fre out Ut as a lawyer in int a t claim case care and settled it 1 so lO Continued oo on Pact Two r INSIDE SIDE STUFF Continued from PUt One Ont successfully the government paid out more than necessary An amazed committee was WM told how one official borrowed 2500 on a six month note payable to bearer from a notorious lobbyist At a time when this lobbyist was bein being sought by the department of ot justice 01 the official of of- contacted him lm in New York and tried unsuccessfully to get possession of the note without note without repaying the 2500 The official Ignored ignore the fact tact that his benefactor was a fugitive from justice at the time and made no effort to turn him over to 10 the authorities authorities authorities au au- au- au or to advise the military committee of his whereabouts I Inspection officers It was le learned were were influenced in their decisions through the granting of very special discounts and highly highl favorable trade trade- ins on new autos for their personal persona use e. e Reputable concerns cOncern which had failed to engage any of a special ring of ot lobbyists were written out o of specifications thus effectively destroying de do- legitimate competition as provided by law 9 Seeking to keep all of ot the ju juicy cy business busine between them a group of lobbyists or business agents got together together together to to- gether and agreed Lobbyists Agree Arree on which should Among Selves Sel have which con conOn conOn con On Army Arm Bids tracts If proven in court this will wil constitute conspiracy to destroy competition competition com corn petition which is 5 expressly provided for tor in tho the law A humorous touch was wa added to the star chamber proceedings when one lobbyist ruefully was forced to admit he had gypped his company on the expense account He had claimed to have expensively entertained several several several sev sev- sev- sev eral reputable officials of the war department with whom he actually had had no contact Less humorous the committee found that this same agent in some fashion had obtained advance information information information mation from the committees committee's own files as to the course the investigation was to pursue Thereafter this agent went vent in advance of ot committee investigators investigators investigators in in- and made it most d difficult for tor them to obtain vitally Important I evidence ft One method of ot freezing certain concerns ou out of ot competition for war department business was to delay issuing Issuing issuing is is- suing invitations to bid until the last minute and then telegraph them Presumably a favored company armed with advance information as asto asto asto to necessary specifications was the only one able to get a comprehensive bid in under the wire Until the military committee started its investigation only one company was eligible under army spec specifications to bid on the lighter types of ot motor vehicles This has hils since been changed but until it was the government t paid high prices Other bad practices also have been eliminated by the war department as the committee uncovered them but rectifying legislation still is needed Inthe in inthe inthe the opinion of members Those who waded through the huge mass of evidence over a period of almost a year were Representatives William N. N of New Rogers Hampshire Hampshire Hampshire Hamp Hamp- shire subcommittee chairman Lister ListerHill ListerHill ListerHill Hill of Alabama Numa F F. Montet of Louisiana and Dow H H. H Harter Harler of Ohio all Democrats Paul J J. Kvale of Minnesota Laborite Farmer and Charles A. A Plumley of Vermont W. W Frank James of ot Michigan and Edward Edward Edward Ed Ed- ward W W. Goss of ot Connecticut all Re Republicans Re-I Re publicans James and Goss were defeater for lor reelection last November but adhering adhering ad ad- hering boring to a win or lose agreement returned to Washington for the final and most spectacular stage of ot the inquiry Copyright 1934 for The Telegram |