The Washington herald., 1922-04-27
Royal Johnson Says He
Gave Proof to Justice
Department.
RAPS DISMISSAL
OF SPECIAL AGENT
Fraud Reaches Hundreds
Of Millions, He Ayers.
Scores Daugherty.

Inc bureau OF engraving anu
Printing again has become a storm
center as the result of sensational
charges made yesterday on the
floor of the HOUSE by Representa-
tive Royal johnson, of South Da-
kota, that hundreds of millions of
dollars worth of spurious govern
ment bonds have been circulated
in the country.
These duplicate bonds. johnson
charged. were printed at the Bu-
reau OF Engraving and Printing
and passed through the ONCE Of the
Retiste- OF the Treasury. Johnson
said information bearing on the
fraudulent issues had been pre-
sented to the Wilson administration
and suppressed. and that he per-
sonally last year conveyed proof
to the Department of Justice.
Reseats Agents Dismissal.
Johnson's accusations were made
yesterday in connection with his
discussion of the summary disnis-
sal Of W. o. Watts, a special agent
of the Department Of Justice. for
"disloyalty to the department"
Watts was discharged on orders
from Attorney General Daugherty
for having supplied Johnson with
information which the latter used
in making an attack on the depart
ment for alleged laxity in p-osecut-
ing war claims. Johnson was Bit
ter in his denunciation of Daugh-
erty.
A government employe, Johnson
insisted. should be privileged to
communicate knowledge of fraud
to members of Congress.
Johnson's speech in the House
followed a conference among Sec
rotary Weeks. Attorney General
Daugherty, Chairman Campbell Of
the Rules Committee and Repre-
sentative Woodwork and johnson
himself.
would Ignore Resolution.
This conference considered what
would be done with the resolution
offered Jointly by woodruff and
Johnson. demanding a thorough in
vestigation OF all matters relating
20 war contracts, war claims and
the disposal of surplus government
materials. Chairman Campbell in
dicated the disposition was to ig-
more the Johnson Woodruff resolu-
ton
However, in light Of subsequent
disclosures, il now seems more than
likely members Of Congress will in
sist that his charges be suestan-
tiated or disproved.
The BJre u of Engraving and
Printing recently came into the lime
light when twenty-seven executives
were dismissed summarily without
explanation. The action OF the ad
ministration created a furore In Con-
gress and among government EN-
ployes. but reasons for the action
were never given other than that 1t
was for the good Of the service.
Ordered to Keep Silent.
A check-u, In the bureau ordered
aftsr the change showed no irregu-
Iarities, according to Treasury ON
cials.
told, ]. ]. M-Carter. who came to
washington to become Assistant
Register Of the Treasury, obtained
information in 1919 that there had
been an emo: nous duplication of gov
ernment bonds. McCarter informed
higher oficials of mis- discoveries. ac-
CO, ding to johnson. and was told
that there would be no investiea-
tic and that he should keep his
mouth shut or lose his position"
Subsequently McCarter was dis
che rged for informing members of
Congress Of his alleged discoveries
according to Johnson.
Gives Numbers of Duplicates.
Johnson said that in 1921 he per-
sonally took the data furnished by
McCarter to the Department OF Jus
tice. after all efforts had failed to
obtain action from the Wilson ad-
ministration. No one knows. accord
ing to Johnson. the amount of the
duplicate bonds. He said he had
seven typewritten sheets SINGLE
spaced. containing the numbers Of
duplicate bonds, some OF which ran
100000 higher than bonds which
were legally issued.
AT one time II was shown con-
clusIvely that a coloredI taxicab b
driver was discovered in front of
the New Willard Hotel with thirty
one $1,000 duplicate bonds" said
. Johnson He was discharged from
custody in four days"
wfaEo Asks Probe,
In response to questions, johnson
said he did not know what the check
up ordered by Secretary Mellon at
the Bureau o. Engraving and Print
ing had revealed. His own inves-
tigation, Johnson said, was Of an
independent character" and produced
facts which no one denied.
Il took personally all Of this data
down to the Department Of Justice
myself. early In 1891, after we had
tried in every way to get action
from the former administration" {"
Johnson said. Letters that were
written through Mr.. Lefhngven, at
thst time an Assistant Secretary of
he Treasury. are easily procurable %
Representative wingo. Democrat
Of Arkansas, demanded that the
charges be Investigated.
Appeals to Country.
Il think we owe II to the people
who own bonds to investigate this
matter and set II at rest once for
ALL" said wingo. IF the charges
are not true let Us brand them as
false" ...... -..- .-.,.----
johnson declared Congress and
the country should resent the dis
charge Of watts
I'VE are getting to a peculiar
situation In our affairs he said
II an employe of an executive de-
partment cannot come to a chair
man of q committee of Congress
and give information concerning