The Washington herald., 1919-05-19


Risk directors administration
Of his ONCE WINS impeded.
Col. Henry D. Lindsey, who was
recently elected chairman of the
American Legion at its convention in
St Louis. has resigned his position
as director of the Bureau of War
Risk Insurance. His resignation was
handed Secretary of the Treasury
Carter Glass Saturday and was Off
cially announced yesterday.
There are strong probabilities Of a
political sensation in Col. LlndsIey's
retirement Col Lindsey, in a state
ment which he issued last night,
charges he was unduly interfered with
in the administration of the War
Risk Bureau by the Treasury De-
partment. Secretary Glass held up a
great many appointments of men
whose services Col. LINDSEY asserts
were essential to his department.
There are intimations that there were
political reasons for this interference.
But the most serious allegation
being made by the friends of Col.
Lindsey in explaining the reason for
his getting out is that the War Risk
Insurance Bureau has been allowed
TO run so short of funds that it may
not be able to meet its obligations
unless Congress Immediately comes
to its relief with special legislation.
Because he realized the seriousness
of this financial situation and the
scandal there would be il there was
a failure to meet any of the govern
ment's insurance obligations to SOL
diers. Col. Lindsey practically forced
the calling of the extra session
His activity in this respect was re-
scnted. it is said. by both President
Wilson and Secretary Glass.
To Force Probe.
Col Lindsley's friends say that the
Republicans in Congress will force a
full investigation of the administra-
tion of the War Risk Insurance Bu-
reau and of the attitude of the Treas
ury Department toward that bureau.
Col. Lindsley's resignation will be
followed by the designations of his
five immediate aides. Dudley Gates,
of San Francisco, who Is head of the
allotment, allowance and accounting
division. handed in his resignation
last night. and that Of c. II. Rennick,
of New York City. who is head of the
administration and personnel division,
will be handed in this morning. The
designations OF Capt. ]. w. Barton,
of New York City, head of the COM
pensation division: Mai. N T. Dowl-
ing, New York City. a personal as
sistant to Col. Lindsey, and l. o.
Fisher, also Of New York City, head
of the insurance division, will, it is
said. be presented to the Secretary
within a few days.
The War Risk Insurance Bureau
has $59, ,OO0. 900. 900 Of insurance obli-
cations outstanding. This gives an
idea of the magnitude of the scandal
that will follow il there should be
any failure to make good on these
obligations when they are due. The
bureau eulpiOJS lt,OOV people, lar more
than the Treasury Department. Yet
Col. Lindsey alleges that he was not
permitted to make any appointments
without the Treasury passing upon
them and without encountering inter-
minable delay in confirmation, which
seriously hampered the work of his
bureau and made a successful admin
istration well nigh impossible.
Service Men Hurt.
The Treasury's delay, though, did
not only apply to matters of .ad-
ministration. 1t also applied to mat
tiers of policy, according to Col.
Lindsey. and in this respect it hit the
soldier. Every delay meant anxiety in
the homes of hundreds of the nations
fighters where aged parents or crippled
parents are dependent solely on the
governments remittances.
The statement issued by Col. Linds-
~ last night in explanation of his
action was as follows:
That I no longer enjoy the con-
fidence Of the Secretary of the Treas
ury Is a matter of little concern to me
personally. especially in view of the
bureaus record during the five months
since / became its director. which
CONTINUED ON PAGE TWO.