The Washington herald., 1907-06-16
Halt Called on Those Who
SWindle Veterans.
ONE ATTORNEY IS DISBARRED
Warner Puts n Stop
10 Practice Going ON Thirty Years.
MuIcted Out of Bounty Land
Grants-A System of Fraud.

Warner. assisted by Secretary of the In
terror Garfield, has uncovered what they
claim is a long-standing scheme among
certain local pension lawyers to swindle
old soldiers their widows. and heirs of
thousands Of dollars.
According to Commissioner Warner. the
practice has been going on for about
thirty years, but it was executed with
such cleverness that unusual sagacity
was required TO detect IT, The Commits
siouer began his investigation some
months ago. but it was a process which
demanded time and care and which was
brought TO a climax only a month ago. As
result OF this investigation one law
yer has already been disbarred from prac-
tice while several other members Of the
profession are in serious trouble.
The disbarrcd attorney is W. +. Moses,
Of Washington and Denver. and the fol-
| lowing other firms have been asked 10
show cause why like punishment should
not be visited on them:
Harvey Spalding & Sons, Washington:
Milo b. stevens d Co, Washington,
Cleveland Detroit. and Chicago, and Ed
gar b. Gaddis Washington. All Of these
firms, with one exception, have complied
with the request of the commissioner
and forwarded their explanations. but one
firm has asked time TO collect its testi-
money, and has been granted until June %
TO do so. BY that date, it is thought,
the other cases will be settled
Veterans Entitled to Lands.
Under the old pension laws all veterans
OF wars occurring before March ., 100.
which include the war Of the Revolution.
the war OF 1872, the Mexican war; ami
the civil war are entitled to bounty land
grants Of 1GJ acres Of public lands. this
bounty passing 70 the widow or heirs in
the event Of the death Of the veteran.
When claims for these bOunties are nlei
the Pension Office. ON approving the
claim issues a warrant. the recipient of
which may locate anywhere on public
lands
Il is the contention of the Pension
Office authorities that some Of the pension
attorneys named have been making q
practice of looking up instances where
the warrant had not been issued, or. hav-
ing been issued. had not been located
When these were found the lawyers wrote
20 the veterans, it is said. and secured
the power OF attorney % prosecute the
claim. With the warrant obtained. the
attorney would attempt 20 purchase il at
any price the owner would name The
real value of the warrant was. in most
cases, concealed from the client and the
usual price paid was about &l-5 an acre.
The warrants were then sold for varying
prices, sometimes as much as s. an acre.
I'm one case which has come % the at
tention OF the Pension Commissioner. an
attorney paid So for 100 acres and sold
IL Immediately for S720
As soon as the commissioner found
that this system Of fraud was being prac-
tiCed he took steps to stop it and after
a careful investigation cited the attorneys
10 show cause why they should not be
disbarred. In each case the commits
Sioner made specific charges, naming the
sums made and the clients involved.
Question ns 10 Recovery.
There is some question whether the
clients who have been defrauded can re-
cover at law on their claims. Some OF
them have been advised that they can.
but it seems 20 Toe the opinion Of the
department officials that the courts viii
hold it merely "a business transaction be-
tween the client and his attorney. in
which the client is supposed 90 protect
himself ais in any other business matter
II absolute fraud can De proved, the re-
suit OF civil proceedings would be diff
ferent. The disbarment proceedings lie +
iu fHa hands of fIa Saprafarg- 1f tho
Interior. who has "a right to prevent any
lawyer from pTactiCinE. even though his
actions be not absolutely criminal.
Commissioner Warner said last night
that he was not anxious 20 indict uu-
necessary punishmen; ON any of the law
vers. but that if, after they had had
hearing. it was found that they were
guilty of the charges. they would be sum
marily dropped IT was his opinion that
such proceedings viii effectually stop any
such actions in future. AT present the
firms mentioned are the only ones under
suspicion.
This latest victory for the commissioner
is the third radical change which has
taken place in the Pension Office since
his installation two years ago. He was
mainly Instrumental iu having the 10 per
cent loan sharks driven from the govern
ment service, and it was his order that
prevented the duuung Of government
clerks through their supcriors i'm the
Pension Office
Reason for Moses Action.
In connection with the disbarment. Act
ing Secretary Of the Interior Woodruff
Aaid: "W. I. Moses was disbarred from
practice because while acting as an attor-