The American Legion Weekly [Volume 4, No38 (September 22, 1922)] . more. Sev-enteen thousand contracts, closed andsettled, are reopened as if by chance,and $46,000,000 is found to be due theGovernment. Pick up almost any con-tract almost anywhere, shake it andmoney rolls out—the publics money. The findings of the contract auditsection, said Congressman Roy of Michigan in a speech inthe House, form a positive and tangiblebasis for action by the Department ofJustice. This statement has beenborne out by the subsequent indict-ments in the lumber and Old Hickorypowder plant sale cases on
The American Legion Weekly [Volume 4, No38 (September 22, 1922)] . more. Sev-enteen thousand contracts, closed andsettled, are reopened as if by chance,and $46,000,000 is found to be due theGovernment. Pick up almost any con-tract almost anywhere, shake it andmoney rolls out—the publics money. The findings of the contract auditsection, said Congressman Roy of Michigan in a speech inthe House, form a positive and tangiblebasis for action by the Department ofJustice. This statement has beenborne out by the subsequent indict-ments in the lumber and Old Hickorypowder plant sale cases on evidenceproduced by the contract audit Woodruff went on to predict thatthere ultimately would be recovered bythe army auditors $750,000,000 whichwas wrongfully and fraudulently takenfrom the Government by those war con-tractors whose operations have, inci-dent to the audit of their contracts,indicated unmistakable criminal dishon-esty. A few typical cases handled by thecontract audit section will disclose thenature of some of the revelations that. The dam at Muscle Shoals in the Tennessee River built to provide water powerfor the $70,000,000 nitrate plant on the Alabama side. Henry Ford has madethe Government an offer of $5,000,000 for the dam are being made almost daily. Namesof firms are not given because the col-lections have not been made. A manufacturer had two contractsfor the same product. In one contracthe was to use government material, inthe other contract his own used government material in bothcontracts, pocketing the difference of$700,000. The case is now a subjectfor correspondence between the auditsection and the contractor. A contractor purchasing supplies anddelivering them on his own contractswith the Government was reimbursedon the basis of certificates made by agovernment inspector at the point ofpurchase. The contractor substitutedforged certificates for the original onesfurnished by the inspector, thereby in-creasing the amount p
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Keywords: ., bookauthoramerican, bookcentury1900, bookdecade1920, bookyear1922
