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About The Sunday Oregonian. (Portland, Ore.) 1881-current | View Entire Issue (Dec. 31, 1922)
THE SUNDAY OREGONIAX. PORTLAND, DECEMBER 31. 1922 SEVER Willi FRAUD , INDICTMENTS Awarding of Contracts for Personal Profit Alleged. Sl-A-YEAR MEN INVOLVED Jobs Amounting to Hundreds of Millions Said to Have Been Parceled Among Friends. WASHINGTON. T. C, Dec. 30. Benedict Crowell, formerly assistant secretary of war, and six dollar-a-year war-time officials of the war department, were charged today in an indictment returned by special federal grand jury here with con spiracy to defraud the government and with delaying and defeating the administration of law. The seven defendants were said by the jury to have participated un lawfully in the award of contracts let by the government during the war and after the armistice involv ing expenditures totaling hundreds of millions of dollars and in which eome of their number had a pecu niary Interest. Those named as consiprators with Mr. Crowell were: William A. Star- rett of New York, engineer and ar-' chitect, said to have been a mem ber of the firms of Starrett & Van Vleck and Thompson-Starrett com pany, Inc., and later associated with George A. Fuller company, general contractors. He was chairman of; the war department's committee on I emergency construction, connected . with the council of national defense, i Bonton Man Involved. Morton C. Tuttle of Boston, Mass, said to be general manager of the Aberthaw Construction company, and formerly a member of the emer gency construction committee. Clemens W Lundorf of Cleve land, O., saia to be vice-president and general manager of the Crow-ell-Lundorff-Little company, and general manager of the Cleveland Construction company. He also was a merrber of the emergency con struction committee. Clair Foster, reported to live in Canada and formerly associated with the Thompson-Sarre and the George A. Fuller companies, -and also with the emergency construc tion committee. John H. McGibbons of Baltimore and Chicago, said to have represen ted a bonding company issuing bonds for contractors and associ ated during the war with the con struction committee. James A. Mean Included. James A. Mears of Boston and Springfield, Mass., formerly general manager of Fred T. Ley & Co., Inc., general contractors to whom the ! first contract for construction of a national army cantonment was awarded. He was secretary to the construction committee in the war department dunner the war. The indictment was the first of Us mvestiKttuuns ol war zraud cases iHiiittiBu uy Ai-iorney-uenerai Daugherty. Others are expected to follow completion of the presenta tion of evidence by department of justice agents, which is said to be rapidly approaching the stage re quired for jury examination. After identifying the defendants, the indictment recited at length the emergency situation brought about by the war and stress under which the government labored, particu larly emphasizing the importance to the construction programme out of which grew the army contonments, huge terminals, warehouses and hospitals. Each of the seven defendants, the indictment asserted, "conceived the fraudulent scheme and plan of get ting control, for their own gain, profit and benefit, and for the gain, profit and benefit of their past and future clients and employers and their friends, of the administration of the immense emergency con struction programme of the United States during the war, including the determination of the policy to be followed, the form of contract grossly, unconscionably and fraudu lently favorable to the contractors and in a like manner and to the same extent unfavorable to the United States . . . " It was next charged that the de fendants, "each knowing well all the premises aforesaid, did unlaw fully and feloniously conspire, com bine, confederate and agree to gether and with divers other per sons to the said grand jurors un known, to defraud the United States by unlawfully and corruptly delay ing, Impeding , obstructing, per verting, prejudicing, contravening and defeating the administration of its laws and lawful regulations. . . Federal Statutes Invoked. "Violation of federal statutes re lating to the procurement of serv ices of contractors for the building construction programme of the war department was charged in one count. In this reference the in dictment said the defendants caused all competitive bidding to be done away with in connection with the administration of substantially all building construction, which in volved expenditure of hundreds of millions of dollars and included among other things, 16 national army cantonments, 16 national guard camps, huge port terminals, many warehouses, hospitals, avia tion fields, ordnance plants and fortifications, comprising more than BOO separate contracts. The defendants, it was charged, administered laws and regulations of the war department contrary to true intent and in a manner not in the best interests of the United States, but in great part in the in terests and for the unconscionable gain, profit and benefit primarily of certain favored contractors se lected by defendants. Army Officers Deceived. The indictment recited the names of numerous army officers who, it said, were deceived, misled and ovveridden by the defendants, causing great waste of money ap propriated by congress and unjusti fiable profits to the defendants and their associates. . Officers regularly responsible for the administration of construction work found themselves out of har mony with the plans of the conspir ators, the indictment continued, and were replaced by others, as a part of the programme of the defendants to "procure control of the deter mination of the policy and plan to be used in the administration of said construction programme of the United States by and for themselves and the other conspirators." In this manner, the indictment continued, the conspirators were "thus to be in a position to delay, impede, obstruct, contravene, preju dice and defeat, and were to procure and cause to be delayed, impeded. obstructed, perverted, contravened, prejudiced and defeated the true purpose and Intent of said laws and regulations aforementioned." 47 Acta Enumerated. Forty-seven overt acts were enu merated and others without number were charged in the general ac cusation. One count declared that the al leged conspirators refused during the years 1917 and 1918 to consider various offers made by reliable con tractors to do any required con struction work for the United States at less than the ' scale of fee and compensation procured by the de fendants to be written into the vari ous editions of the cost-plus plan contract. Another said that the alleged con spirators, regardless of the interests of the United States, continued to award and cause to be awarded con tracts for construction without of fering any opportunity for competi tive bidding. The defendants also were said to have procured persons directly in terested in furnishing certain phases of materials to the govern ment to inspect and pass upon such materials, particularly lumber. Qurrying Favor Charged. While acting in the government service, another count said, the defendants "mal-administered the laws and regulations of the United States as to curry., favor with the persons and concerns with , whom they were dealing, 'as contractors doing work for the United States and particularly with certain per sons and concerns, among which were contractors wo were promi nent in the construction and engi neering industries, to the end that each of said conspirators would and should, and most of them did, pro- CAUTION Wrappers of the New Year's Edition of The Morn - ing Oregonian issued MONDAY, JAN. 1, will bear this label: New Year's Edition Price will be 5 cents a copy: postage, 6 cents' in the United States and possessions. All other foreign postage will be 12 cents. cure in return for such prejudicial and favorable administration lucra tive positions in said industries from and at the hands of such favored persons and concerns." From August 10. 1917, to March 22, 1919, it was said, the defendants "participated in the awarding of contracts and the giving of orders for the furnishing ... of work, labor, services, materials, supplies and other property. In some of which contracts and orders some of said defendants had a pecuniary interest and in others of which con tracts and ordeVs some of said con spirators had a direct or indirect interest in the pecuniary profits as stockholders of corporations or members of firms." Daugherty Makes Statement. ' It was specifically charged that the defendants, acting between armistice day, 1HS, to July 1, 1919, "procured the . ited States to be obligated for extensive new war and military construction, the exact amount of which is to tfi grand jurors unknown, but which they charge was in excess of $80,000,000; of which amount in excess of $11, 000,000 was to contractors selected oy said conspirators and given such work under the cost plus form of contract . . ." In a formal statement issued to night by Attorney-General Daugh erty, it was said the indictments spoke for themselves and the re sponsibility of future action now I est fid upon the courts. "1 feel that it would be highly Improper for me to comment upon a grand jury action," Mr. Daugherty said. "It also would be manifestly improper for me to discuss what further similar steps may be taken or ure in contemplation by the de partment of justice." CROWELL DENIES CHARGES Army and Council of Defense-Said to Have Approved Contracts. CLEVELAND, O., Dec. 30. Cate gorical denial that there was any conspiracy or collusion in the awarding of war construction con tracts which he had any knowledge of or connection with was made by Benedict Crowell, former assistant secretary of war, when informed of the return of indictments against himself and six "dollar-a-year men." "There was a great amount of con struction work to be awarded dur ing the war," Mr. Crowell said, ex plaining the method of operation. "As assistant secretary of war I had the duty of finally approving these contracts. "A construction division of the army was set up, and as each job came up the division investigated all the large contractors applying for the job and picked out the men they thought most capable of han dling that particular contract. "Their recommendation was sent to the council of national defense, who had to pass on it and send the report to me. "I made it an invariable rule to approve the contract when the two bodies, the council of national de fense and the army construction di vision, agreed on the firm most capable of handling it." HAZARD SURVEY BEGUN Deputy Fire Marshals to Inspect . Statehouse and Institutions. SALEM, Or., Dec. 30. (Specials- Horace Sykes and James S. Gleason, deputy state fire marshals, have be-e-un the task of inspecting the State- house and all state institutions, with a view of eliminating any fire haz ards that may exist at the present time. The report of the deputies will be filed with the governor within the next week, together with any legis lative recommendations that they mav deem desirable. Such recom mendations, if there be any, will be submitted to the legislature during its next session, which opens Janu ary1 8. Basin Survey Cost Up Soon. THE OREGONIAN NEWS BUREAU, Washington, D.- C, Dec. 30. The house irrigation committee has been called to meet next Wednesday morning to consider the bill for an appropriation of $190,000 for a sur vey of the Columbia basin irrigation project. Representative Addison T. Smith of Idaho, chairman of the com mittee, said today that a favorable report was expected from the com mtitee. Only two members of the committee are known to oppose the bill, these being Baker of California and Loatherwood of Utah, BATTERED LINERS ID BACK TO SEA Storm One of Worst in His tory, Say Mariners. HUGE WAVES BATTLED Steward on One Craft Falls Three Times While Attempting to Carry Soup to Captain. BT JACK HATES. (Copvright. 1A22. by The OreRonian.) NEW YORK, Dec. 30. -(Special.) With twisted stanchions straight ened and smashed bulkheads re paired, sofie ofthe ocean liners that crawled into port this week, days late and caked .with salt and ice after battling through the most stu pendous tempests that have swept the Atlantic in 20 years, went out again today to defy King Neptune and all his works. It is reiatrng the commonplace of ocean peril to say that the in coming liners reported waves 100 feet high, that the hurricane blew at 100 miles an hour, that one wom an's hair turned gray during the trip, that captains spent days on the bridge without more than a few minutes' sleep. When these big. general statements are made there are still the little human things to record, the things which throw, into relief the immensity of the danger through which the vessels passed and incidentally the height of cour age Which those dangers evoked. Steward Takes Tumble. There was, for example, the little matter of Captain Henri Bolshon's pail of soup. One of the French line stewards started for the bridge three times with a plate of hot broth intended to refresh the ship's commander after some 48 -hours on watch without sleep or change of clothing. On his first trip the steward was half-way up a stair when La Savoie put her nose into a wave and sent both soup and steward 20 feet down a corridor. Upon a second attempt the stew ard took a short cut, which led him on deck for a moment. La Savoie chose that moment to roll. She rolled until her funnels were almost parallel, with the sea, till every thing not fastened down fell with an appalling clatter to deck floor. The steward slid toward the rail, a flip of a comber washed him back toward the, bridge ladder, which he clutched, and when, half drowned, he opened his eyes, the pail of soup had vanished. His third attempt was made during the arrival of that sea which lifted the salon piano from its fastenings, bore it almost celling high and threw it against the end of the music room. When the tons of water had lashed through the vessel and off again, the steward found himself and an empty soup pall on top of a table outside the salon, with no very clear idea of how he got there. Bruised and dazed, he was relieved by a companion, who managed to carry the soup to its destination. Odd Things Come to Mind. The things a captain thinks about at such a time are odd and not necessarily related. The captain thought of a hot bath. He thought of Sandy Hook, which he earnestly desired to behold. He thought of a certain Christmas festival, but he thought chiefly of how to keen up the morale of the passengers and crew. . Thus It happened that he thought of music, and of music La Ssavoie had plenty, even after the piano had gone on its involuntary rampage, even after some of the instruments were smashed by being aasned aoout the music room. The orchestra played jazz and such of the passengers as were able to leave their rooms smiled bravely at the syncopation, trying to forget that they were "battered down" and virtually imprisoned in a boat which seemed -likely , to turn over any moment.- When, the " piano banged across the salon, where many men and women were seated Purser Picard managed to laugh. Inward Quaking Admitted. . He admits that he quaked in wardly, for a 10,000-pound piano is not a sate thing to have sliding around a heaving room, but the laugh and the few jesting words quieted what might have become a panic. The chefs on the battered liner, by the way, will tell you that the captain's job was a sinecure com pared with their own. But naturally le commandants was not obliged to dodge hot dishes and stove lids, ket tles full of boilinfc water, nor the red-hot angle of a stove when the ship threw everyone helter skel ter. Nor was it necessary for the captain to pursue a griddle or a kitchen spoon half the length of La Savoie every time the ocean turned itself inside out. The truly difficult job, as every steward is willing to admit. Is trying to carry a cup of coffee to a-passenger at a table at the far end of a dining room afflicted with St. Vitus' dance. One and all, however, were smiling and urbane as they started back to day unperturbed. "It cannot be worse," they say. GROCER HELD FOR ARSON Arrest Follows Burning of Store and Alleged Kidnaping. SEATTLE, Wash., Dec. 30. Charges of second degree arson were filed today against George C. Clements, grocer, who yesterday told police he had been kidnaped, robbed, beaten and branded by un identified assailants. He was re moved from the city hospital to the city jail in default of $2500 bail. Thursday afternoon Clements re ported that unidentified enemies, who he said had pursued him for months, had set fire to his grocery: store in Ballard, a suburb. The complaint formally charges, Cle ments with burning his own store and alleges that the stock carried was over-insured. Clements recited to officers a list of misfortunes which he said had followed him for the last two years, including the burning of his home on the Des Moines highway during the summer of 1921, thefts of Iwo automobiles belonging to him and his beating by two thugs who at tacked -him in his store Novem ber 14. Clements was found unconscious yesterday on a doorstep near his homeswits strange letters cut into his arm with a knife. The wounds are not serious, according to physi cians who attended him. FARM; ITEMS GUflTAILED CLACKAMAS MOVES TO CUT OFFICIALS' SALARIES. Budget Meeting? Favors Tax In crease to Legal Limit for Highway Construction. OREGON CITT, Dec. 30. (Spe cial.) Practically every farm Item on the 1923 budget was curtailed today at the annual budget meeting, attended by 700 persons. The ma jority were farmers, who desired to cut the tax burden. Reductions totaling $7270 were made during the stormy discussions, which ter minated with the adoption of a mo tion to increase the entire budget to the legal limit of 6 per cent and apply the added revenoe. in road construction. The Items cut from the list were the county agent, $2300; assistant club leader, $1750, and state and county fairs, $1000. The salary of the health officer was cut from $800 to $300, but $100 was, allowed for his expenses. One clerk was cut from the tax department, with a salary of $1020 and the overtime al lowanca of $600 cut off. The salary of the chief deputy in the recorder's office was cut from $1200 to $1000. The total levy for the county will amount to about $500,000. The $30, 000 Increase voted will be applied only on roads. When the budget was drafted, no increase was provided and the budget meeting was to oe requested to vote the 6 per cent and apply it to reduce outstanding in debtedness. The placing of the funds on the roads, however, filled out the entire amount of receipts and no fund to cut down the $350,- 000in unpaid warrants is provided. The employment of a county health nurse was defeated. A resolution demanding that Clackamas county legislators intro duce at the next session a bill cut ting the salary of all county of ficials from 15 .to 20 per cent In this county was approved. It was in troduced by B.. E. Castro, who de clared, that the value of farm pro ducts had depreciated 75 per cent and wages had dropped 30 per cent. FRUIT POOL PRICES HIGH Lane County Product Tops Mar ket in Many Lines. EUGENE, Or., Dec. 30. (Special.) Fruit pools recently closed by the tugene "rult Growers' association indicate that the Lane county prod uct topped the market in many lines, according to J. O, Holt, man ager of the association, who today give figures on some of the pools closed. Royal Anne cherries, sold by many growers for 7 cents, brought 8 cents a pound here. Sour cherries closed at 7 cents a pound, Blng cher ries at 6 cents, red raspberries at 6 cents and plums at 2 cents. Last year Royal Anne cherries closed out at a cents In the top grades. . Raspberries sold this year at practically the same price as last, as did also strawberries. DYING MAN IS FOUND Farm Laborer, 111 24 Hours Un der Harvester, Succumbs. OREGON CITY, Or., Dec. 30. (Special.) Nels-Anderson, who was stricken Tuesday with paralysis at the home of J. Coleman Mark, of Mark's prairie, died in the Oregon City hospital today. This was the first stroke suffered by Anderson. After lying for 24 hours beneath a harvester in the Mark barn, unknown to the owner, the man was discovered by Mark and Otto Pelletz, after search had been made. He was immediately brought to the Oregon City hospital. He was 67 years of age. He had made his home in the Mark's prairie country for more than 20 years, working as a farm hand, and for 10 years had occupied a home on the Mark farm, where he was employed. Teacher to Take Special Work OREGON AGRICULTURAL COL LEGE, Corvallis, Dec. 30. (Special.) Miss Abby Andrews, 1920 gradu ate in home economics and graduate student at the college this fall, has departed for Greeley, Col., where she will take special work at the state teachers' college for the remainder of the year. Miss Andrews, a daugh ter of Mr. and Mrs. A. Andrews of Corvallis, has taught in southern Oregon and California the last two years. Co-Ed Will Seek Health. , . ' OREGON AGRICULTURAL COL LEGE, Corvallis,. De.c. 30. (Special.) Miss Dorothy Stover of Corvallis, junior in home economics, who was obliged to give up her college work this term on account of ill health, has gone to Tecumseh, Ok la., for the winter. Miss Stover will stop at Duncan, Okla., to spend several weeks with a brother, Guy C. Stover. Teacher Snes for Damages. VANCOUVER; Wash., Dee. 30 (Special.) Belle Le Clair, a high school teacher here, today began suit against the North Coast Power com pany of this city for $20,000 damages as the result of a fall from a street car operated by the company. The accident occurred January 3, 1920, Miss Le Clair avers. The Oregonian publishes practi cally all of the want ads printed in the other three Portland papers, in addition to thousands of exclusive advertisements not printed In any other local paper. New Year's Eve DANCE TONIGHT BROADWAY HALL Entertainment 10 to 12 Dancing 12 to 2:30 Fleming's 10-Piece Orchestra Ml. AT DANCING PARTY FUTURE BELLES AXD BEAUX OF PORTLAND PARTICIPATE. Mrs. Carrie Christensen and Vic tor Christensen Are Hosts at Annual Affair. From 2 until 4 o'clock yesterday afternoon Mrs. Carrie Christensen and Victor Christensen were hosts at a beautiful dancing party at Christensen's hall, the occasion be ing an annual event of the Christ mas' season. More than 200 future belles and beaux of Portland parti cipated in pretty dances and a big audience of invited guests and par ents of the children was In attend ance. ' The big dance hall was handsome in its holiday decorations. Christ mas trees stood in each corner and at the sides of the room,, and huge holly wreaths were placed at inter vals festooned together with green ery along the walls. From the chan deliers long ribbons of crimson floated and a profusion of cut flow ers and greens in big vases added a colorful note. Tneorchestra was ensconced in a nook of holly and red poinsettias and fern All of the young dancers, pupils from the children's classes, were garbed in their -party attire and the soft pretty frocks of the little maids made a most effective picture. Besides the various interesting class dances, exhibiting the work of the pupils there was a charming exhibition number, "The Messenger and the Maid," interpreted cleverly by Katherine Cole and Florence Nelson in costume. At the conclusion of the festivities a big Santa appeared from some where with a great pack of candies and favors for the young guests. A Christmas party of similar na ture was held on Friday evening for me nign scnool dancing classes and another party earlier in the week for the members of the adult classes. BUREAU CHIEF RETAINED Linn County Farm Organization Re-elects President. ALBANY, Or., Dec. 30. (Special.) Clarence H. Brown of Shedd was re-elected president of the Linn county farm bureau for the coming year at the annual meeting held here today. Other officers named were: W. R. Daugherty of Lebanon, vice president, and T. J. Jackson of Har risburg, L. E. Gilkey of Scio and L. E. Arnold of Lebanon, executive committeemen. A secretary-treasurer will be appointed at the first meeting of the executive committee. The business transacted included the reduction of annual membership dues from $10 to $5; approval of better and more Btrict enforcement of the Canada thistle law and adop tion of a compulsory tuberculosis testing law for Linn county. A committee will call on the next ses sion of the Btate legislature to sub mit a new thistle and tuberculin test law. BRIDGE FUND IS UPHELD Douglas . Court Within Rights, Says Attorney-General. ROSEBURG, Or., Dec. 30. (Spe cial.) The Douglas county court was within tts rights when it in cluded in the budget the item of $10,000 for construction and main tenance of bridges, in addition to the regular road and bridge fund, according to an opinion received to day from Attorney-General Van Winkle, The Douglas county tax payers' league challenged the au thority of the county court to make separate levies for the road fund and for the county bridge fund. The attorney-general, in his opin ion, held that the various road laws governing these matters are cumu lative in effect and that the county court clearly has the right to spec ify the various items for which money is to be expended. JUDGES TO GIVE LIMIT Eugene Courts Decide to Deal Bootleggers Heavy Jolts. EUGENE, Or., Dec. 30. (Special.) As New Year's resolutions' both Judge Jesse G. Wells, of the Eugene justice court, and Judge Alta King, of the police court here, announced today that they had decided that throughout 1923 they would impose the limit penalty on all bootleggers In cases where the family of the man accused will not be made to suffer by reason of his paying a I Judge Wells today started to carry out his resolution when he fined Jack Fulton, who had pleaded guilty to unlawful possession of liquor, $,500 -and sentenced him to six 1 cial.) The Oregon Agricultural col monthg in jail. The city ordinance "lege contingent home for the holi covering bootlegging does not pro- days, together with resident alumni ' ' ' I I Norman Brothers f are tailors to men who ' v J seek correctness as well i ' j as distinction in formal I ' j and semi-formal evening S ,. wear. II J May the new year bring , a full measure of hap- ! ! piness and prosperity I to all. j . 103-108 Mezzanine tfe. Floor, Northwestern , SSg ; -gJ.JJ SSL.q " Bank Building vide a jail sentence but a fine of from $20 to $200. Judge King said he would see that the maximum fine is imposed as often as possible. FINE PAID BY WINBURN Ashland Man of Recent Political Fame Decides to Settle. ASHLAND, Or., ' Dec. 30. (Spe cial.) Jesse Winburn, who skyrock eted into fame during the political campaign, today paid a fine of $200 levied in the justice court on a charge of violating a city ordinance prohibiting picnicking in the Ash land watershed. The fine was assessed about two months ago, at which time Mr. Win burn announced he would appeal the decision of the lower court. Charges against Frank Farrell, Medford attorney, now acting as justice of the peace, and B, M. Pot ter, a local taxi man, were ordered dismissed by William M. Briggs, city attorney. STUDEIITSARE FETED Creswell Scholars Hear of Ad vantages of College. CRESWELL, Or., Dec. 30. (Spe- To all new owners of Victrolas Congratulations, and an invitation! ONGRATULATIONS to Victrola owners! A splendid possession is yours a joy that began with Christmas and will last for many a year. And now that the whole world of music is yours, with every dance floor, concert stage and opera house opening directly into your home, remember that the only limit to your enjoyment is the limit to your records. A splendid Victor record service is maintained by this store. Trained dem onstrators are always happy to play Victor records for you. Come in any time and hear your favorite records. Victrolas $25 to $1500; convenient terms. Sherman jpiay & Co. Sixth and Morrison Street! PORTLAND Opposite Poatofiice 8ATTT H - TACOMA - SPOKANE and ex-attendants, at the college, tendered a reception to the senior and junior classes of the high school Friday night at the high school. The arrangements were In charge of Miss Zella Steele, a member of the senior class at Oregon Agricultural college. The rooms were decorated with the high school colors, maroon and black, together with the college colors, orange and black. The guests were first taken to a moving pic ture show. Returning to the school, they were told of the advantages offered at Oregon Agricultural col 1 m : -i:u-J II a i : Transfer Gases at Attractive Prices Transfer cases that stacJNjs high as you like that remain rigid when loaded to capacity that are individual units, yet' interlock with others that are perma nent, sanitary and fire-resisting.1 That's "Allsteel". And the price is right See us be; fore you buy. . IRWIN -HODSON . Furniture Dept. 391 STARK ST. AT TENTH all new lege by William Sedgwick, a senior at the college. Major-General Wright Retires. WASHINGTON. D. C, Dec. 30. Retirement from active duty of Major-General William M. Wright on account of disability was an nounced today by the war depart ment. He has been in the service 40 years, during which time he com manded successively the ninth corps area with headquarters at San Francisco, the Philippine depart ment and, the 89th division In France. Angle Reinforcement Heavy Ckannei Reinforcement iiU Closed Sid J 111 Optional Hollers M "j '""Tin rtramm and Cast Trainfer Cms Nuatber2 -T.L.