Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1915-11-26
EXPECT ARRESTS SOON FOR LOO1|NC STATE FUNDS.
Investigation of Frauds in Industrial Insurance Department Will
Rushed Say Governor and OBSERVATION-DISCLOSURES
Police Ben Hall Charge of Accepting Bribes


mated anywhere from $4,000 $4,000 exposed this
week before the commission investigation completed
expected within the next few days. and further sensations result
this action. To date empoye commission
ies claim since early 1872 has been suspended nef
ntey without pay, while former employee discharged
spring for other reasons, is under surveillance
The publicity given the defalcaions industrial
fund.- coupled with the arrest last Saturday night of former Chief
of Police Ben Hall charge Of having accepted 500 brb
from the propress of alleged dsodery recently
closed by Prosecuting Attorney Geo Yantis
Olympia with sensational disclosures this
excitement throughout the state Allegations that the
tanned by these frauds used finance the operations opium
smuggling ring operating in this city, added the disclosures
Reports published Republican newspapers that neither the
etorny generals office Prosecuting Attorney Geo. F. Yant
have been consulted investigation giving that
dydalying with the probe and irving to hush
up something declared to be without foundation
generals Office has assigned Attorney General John NJ Wilson,
former prosecuting attorney in this
been consultation with the commissioners all this Being
state properly handled by the attorney generals Office
while the investigation being conducted by the
under the direction Of Governor
assistance of Burns operatives.
Twill Be Probed to the Bottom
Everything possible is being done ferret the guilty
parties Floyd L. Dagg chairman Of commission says
Naturally had eli our invs
legations completed but commits
sion that this thing will be probd the bottom and the guilty
ties brought to trial"
Governor Lister who keeping a with every feature Of
the investigation also announced ths would be left
TONS The commission composed of Chairman Daggett B.
Ernst and Clarence Parker
of the ootng of funds by
Posntelgencr last Monday premaurey before
missions investigation instituted about weeks previously
been completed Intense excitement instantly by
first story which declared the defacans would
and which named three saloons city,
Arthur Young 1911 Pacific Tacoma
First avenue Seattle the places warrants
cahd Later by the commission the loss
approximately $5000 though it admitted that the be
increased by the discovery Of other frauds the investigation
continued
The money all obtained through forged fraudulent
claims which put through the department by connvanc
sion as conderaes and which warrants regularly issued
by the auditor cashd
the of injured employee his reputed employer and the
attending physician the abactng of the claims from the
routine of the Office the withholding of the notices
oers always sent out before claim paid and forged ndose
of the warrants when cased and required number of
sons to put it through.
First Discovered November g.
The frauds discovered when the commissioners learned
November that claims missing files This
medaey suspicious
stenographe the Office told superior
had
precauon taken the employer time offer objection
to the commission action in approving the claim.
Further investigations developed 13 claims which have far
fraudulent and of these such notices
employers Neither had these claims the hands of
Dr. j. W. Novel; the commissions medical examiner. This nd
Gated the commissioners that the claims had been distracted from
regular routine Of the Office by employees for the
would have been discovered the notices had been
and likely the claims had been passed by the
Rumos that one of the commission employees was member
the opium smuggling ring first to the commissioners aen
ion early last July and Immediately taken with the federal
authorities who after investigation reported that they with
foundation Again. in September former Chief Hall informed
Dagge of these charges naming federal agent who he
sa would corroborae him. Immediately after consulting Prose-
cutting Attorney Yan the commission went direct to the federal
Hall and both he and his department branded the
rumors baseless.
Wednesday called Hall with
him. but neither made statement Hall still in JAIL held under
which been furnished and is stated that other
charges addition the upon which he arrested will be
placed against him. Ges the former claim agent who nde
ny suspended by the commission has employed Attorney Harry
L. Parr of this city to defend him.