The Hartford republican. (Hartford, Ky.) 18??-1926, 1920-12-10
800 .... IA INSURANCE
employees CROOKED
Attaches Graft on Manned
Claim, 5000 Surplus
On Payroll.


lions have been wasted on at least
5000 surplus employees for whom no
work conld be found, according to an
Investigation of the Bureau of War
Risk Insurance now being conducted
by q congressional committee, 1t was
learned today.
"The revelations of graft, waste
and inefficiency in our report will
equal, if they do not surpass, the scam
DIAL barred in the United States Ship
ping Board operations" said Repre-
sentative ]. T. Begg, of Ohio, rank
ing member of the committee, to-day.
An idea of the stupendous business
done by the War Risk Insurance Blu
reau can be gained when it is real
ixsd that it has handled a total of
4.46a,p49 policies, covering insurance
60 the total amount of s40,331, 64O,-
0oe.
"Jt is difficult to speak calmly of
the cases of wholesale fraud discov-
cred in the bureau, when thousands of
OneIegged, One-armed and blinded
soldiers were kept waiting for weeks
in ante-rooms," continued Mr.. Begg,
FINALLY to be buttonholed with the
suggestion from one insurance ex-
aminer or another that his claim for
Snsnrance was worthless but he would
see what he could do for him, if the
insured would give him half of the
premium received.
Submit a Last Hope.
MANY q poor fellow submitted to
this Outrageous extortion rather than
lose all hope of collecting his insur-
arcn. Such practices are beneath the
dignity of a common thief, and it is to
be hoped that when the elevn men
wha were indicated in connection with
this fraud come before a jury they
viii receive punishment calculated to
discourage such practices"
Testimony given by R. G. Cholme-
Fey Jones, director of the bureau, and
hezIH of various departments before
1hE committee, revealed the fact that
at one time the bureau employed a
total of 1900 persons. At the same
sime- The head of one large branch of
1hs work admitted that there was on
7y isork enough to keep his employees
busy eleven days out of every twenty
six
I'll is impossible to estimate what
sbs 2Oss was on surplus employees,
but when it is remembered that they
were paid an average of $500 apiece
II Is clear that the loss runs into many
Mr.. Begg declared.
Millions in Overpayments.
~sIn addition to this the loss al
ready has been discovered of SILL
08e, 900 in overpayments of allot-
zDREts- This was due in large part !
90 The extremely bad cooperation |
between the War Department and the |
bursau. In some cases allotments |
cantinued to be paid many months |
AFTER a man had been discharged.
When the cases were finally discov-
cred attempts were made to collect
from poor families who had accepted
the checks in good faith but in most
instances without result. This policy
often worked untold hardships.
Representative Dale, of Vermont,
Is chairman of the committee investi-
Cutting the war risk scandal. He is
to arrive in Washington
and to call for resumption of
Discovery of frauds practiced on
soldiers in the Bureau of
Wax Risks Insurance was first made
IN July 20, last. On that date three
were arrested and held in
IId. 900 bail.
They are: William w. Salisbury,
Of Buffalo, N. Y, Patrick O'Brien, of !
Des Moines, Ia, and David Griswold,
Of Brooklyn, N. Y. Later George w.
Seitz. of Washington; Daniel O'Keefe,
an attorney of Washington and Alloys
lous Young, of Washington, were ar
rested on similar charges. These men
havs not yet been tried.
The frauds came to light when
soldier from Arizona appeal =
ed 10 Senator Ashurst of that state,
far protection against war risk en-
llnyes who were trying to rob him
os 2he greater part of his compensa-
sioE Senator Ashurst reported the
malltz 10 the government and de-
mnndeh an investigation. Scores of
derlare they had been made
10 divide "fifty-fifty" before they re-
eE5IEa a cent of their insurance COM
peElsa5 ion. When confronted with
ihese facts an official of the bureau
iIu I1Gt deny the validity of the charge
1nly replying:
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