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Show ARMY OFFICER IS WARGRAFTER Arrested for Accepting Money From Truefit Raincoat Company Com-pany for Promised Contract Con-tract WASHINGTON, June 18. The trial of the government's pursuit of illegal profiteers on war contracts today led to the arrest in New York of Lieutenant Lieu-tenant James C. Staley, a reserve army officer on a charge of accepting mone from the Truefit Raincoat company com-pany of New York, for a contract which he promised to procure. The arrest was made by department of justice agents who had followed the officer during his inspection of the plant of the raincoat company whose proprietors acted in co-operation with the government to detect the fraud. The secret agents arrested him im mediately after he was said to have received a sum of money from Joshua Rosenthal and Louis Weber, proprietors proprie-tors of the plant. It was charged that he had told them he would expect more money as soon as they got the contracts which they sought for 50,-000 50,-000 raincoats costing nearly $250,000. Will Arrest Others. This is the first arrest of an army I officer since the department of Jus-1 tice started its investigation into thej system by which contingent fee agents 1 have made millions by obtaining con-1 tracts for manufacturers who were charged a commission. Other arrests I may follow soon, as it is known that a number of contractors in New York and elsewhere are assisting the government gov-ernment in running down agents by whom they have been approached. Lieutenant Staley, is about fifty years old and came originally from Iowa. He entered a training camp in that state last summer and later was transferred to Fort Snelling, near SL Paul where he was commissioned in August. Subsequently he was trained at the quartermaster's school at Camp Dodge, Iowa, and last December Decem-ber lllh, was appointed an inspector! in the quartermaster's department for ( raincoats and other army rubber goods. He has been stationed in New York most of the time since. oo |