New-York tribune., 1919-05-19
Director Blames Glass for
Throttling Bureau With
Red Tape and 1rnpairing
of Service Mems Rights
Says Policy Is Intolerable
One Assistant Resigns
With Chief and Other
Four Expected to Follow
By Theodore M. Knappen


surance, rendered his resignation to
Carter Glass, Secretary of the Treas
uvy, yesterday, and will walk out Of
the cffice tomorrow. Dudley Gates, Of
San Francisco, one of Colonel 'Linds-
lcy's five executive assistants, has al
ready followed his chiefs example, and
the others are expected to follow suit
| tomorrow.
According to Colonel Lindsley's
statement and corresp spondence made
public to-day this denouement is the
outcome of months Of fruitless strug-
gle against red tape and the paralyzing
tendencies of bureaucracy.
Fearful that delay and inaction in
vital matters in the Treasury Depart
ment threatened the very life of the
bureau, Colonel Lindsey on April s
in which he bluntly said that the sue
cess Of the bureau was up to the Sec
was not a condition complained of
which it was not within the Secre-
.arys power to remedy. This letter
finally resulted in a request from the
Secretary, dated May Is, for Colonel
Lindsley's resignation. The latter con-
sidered his letter of April 8 as in ef-
Ii. TO
were mmediately granted.
On Verge of Breakdown
Here are some Of the salient points
in that letter:
The Bureau Of War Risk Insur-
ance is on the verge of breakdown
and failure because of lack Of CO.
operation from the Treasury De-
partment and "intolerable condi-
tions in that department"
The director is without the au-
thority necessary to carry through
reforms or continue efficient admin
istration. The bureau is "volcano,"
which Mr.. Glass inherited from his
predecessor.
There are ,nterminable delays in
passing on the most trivial subjects
by the Treasury Department.
The bureau is not in good repute
with soldiers and their families.
There are millions of soldiers ac-
counts with the bureau still to be
adjusted and settled, leach malad-
justment source of antagonism on
the part Of the soldier to his gov
ernment," but this work can not be
done unless the bureau "is given
relief from the system that exists
in the Treasury Department."
"In view of the vast social and po-
litical Importance Of this work, the
Treasury's policy, as applied to this
bureau, is intolerable."
Lindsley Explains Position
Colonel Lindsley's statement an
nouncing his resignation is as follows
"That I no longer enjoy the conf.
dence Of the Secretary Of the Treasury
is a matter Of little concern to me per.
sonally, especially in view Of the bu.
reau's record during the five months
since became its director, which
shows growing confidence on the part
Of the public in its work.
"Considering the terms on which
accepted this appointment, my resig-
nation has in effect been always in the
Secretary's hands, for made it an ex
press condition to my undertaking the
task that l should have the authority
commensurate with the responsibility
that was placed upon me. When it be.
came apparent that the Secretary was
not living up to his undertaking anc
that delay and inaction in vital matters
IN the Treasury Department threat
ened the very life of the bureau.
deemed it my duty to point out to hin
fully and frankly the conditions which
were Gripping the work and to Offer
suggestions for immediate improve.
ment.
My letter to the Secretary, Of Apri,
8, expressed in terms that I desired
should be unmistakable, could only be
contrasted as fiat tender Of my resig.
nation unless the conditions I com.
planned Of were corrected.
Wouldn't Modify Letter
1T was suggested to me by Assistant
Secretary Shouse, when the letter
reached his hands and before if
reached the Secretary's, that it might
be taken as personal affront. but
lnasmuch as had prepared the letter
only after the most mature consider
alton and in very earnest effort to be
helpful to the situation, / advised Mr.
Shouse that neither the Secretarv's
personal feelings nor my continued
connection with the bureau had anv
weight compared with the vital i'm
portance of the real issue presented
namely, whether the bureau was to
succeed through the cooperation Of the
treasury Department or fail for lack
of it.
Having been unable to make the
Secretary understand in any other way
the gravity of the situation, deemed
1t my obvious duty to the service to
speak plainly. This determination !
confirmed in my letter to Mr.. Shouse
OF April 8, since when the entire mat
ter has been held in abeyance, accord
ing to the Secrctary's letter of April 10
For the sake of the millions Of sol-
diers and sailors and their dependents
am greatly concerned lest the Treas
ury policy toward the bureau 80 GRIN
pie Its work as to impair their rights
under tho war risk insurance act and
thus cause untold hardship and suf
fering."
Glass Asks Resignation
In asking for Co1opal Y,zI.,.-,