Monday, Feb. 11, 1924

Policy, not Fraud

The case of the Government against Benedict Crowell, of Cleveland, former Assistant Secretary of War (TIME, Oct. 15), was thrown bodily out of court. Mr. Crowell and six associates were indicted over a year ago on the charge of conspiracy to obtain profit for themselves and their friends from cost-plus contracts for building Army cantonments during the War period. The case came up in October and the defendants filed demurrers.

Last week Justice Adolph A. Hoehling of the Supreme Court of the District of Columbia sustained the demurrers and killed the indictments on the grounds:

1) that the cost-plus contract system has been approved and adopted as a policy by Secretary of War Newton D. Baker;

2) that the indictment made no charge that the defendants had deceived Mr. Baker or had anything to do with putting the cost-plus plan into effect.