The New York herald., 1922-05-14
Adds Two Members to Com
mittee Which Conducted
Investigation.
HINT AT PAPER SCANDAL
Appointment Of Custodian as
One of Probers Suggests
New Charges.

special Dispatch to THE New YoRK HERALD.
New York Herald Bureau,
Washington. ID. g., May l3.
Score ary of the Treasury Mellon to-
day elected the report of a special
committee which investigated condi-
he Bureau Of Engraving and
Mellon is said to have been dis
pleased with the "whitewash" nature
of the report in the face of certain
serious complaints which constituted
the basis in part for the inquiry Mr..
Mellcn found IN the report itself seri-
Gus differences of opinion on the real
condition of the bureau, especially re-
lating to the paper supply.
The. report was sent back 10 the
committee with instructions that it be
considered jointly with f. G. Collins,
custodian of paper, and Louis A. Hill,
director of the bureau.
1t became known to-day that the re-
port submitted to Mr.. Mellon did not
agree with the findings OF other investi-
gators who were detailed by Attorney
General Daugherty to mai.s a special
inquiry.
| In rejecting the report or the com
mittee officials explained that the Secre-
tary Of the Treasury desired that the
bureau report in it's hnai form shall
bring out clearly any new discrepancies
which may have been discovered re-
Gently. distinguishing them from old
shortages which have. been carried on
the bureaus books for many years.
BY bringing the paper custodian into
the inquiry it was indicated tfat inves-
tiga.ofs have traced losses Of paper
issued for the printing of norey stamps
and certificates.
Removed for Inemciency.
President Harding pm March 81 issued
orders dismissing 'for t1s good of the
service" James l.. Wilmeth, director, and
thirty subordinate officials of the Bureau
of Engraving and Printing. Mr.. VIII
meth is a Democrat. Louis A. Hill,
appointed to succeed him. is Repub-
lican, who was assistant chief of the
bureau under Wilmeth. All the officials
removed were civil service employees
and had been in the Government service
/ in the bureau for many years.
Three days after the removal of Will
meth and the other officials Secretary
Mellon, in the first official explanation
made of the Presidents act. said they
were removed on the grounds of in
efficiency and that a reorganization of
the bureau would be undertaken. An
| investigation of the bureau lad been
/ conducted, Mr.. Mellon said, py A. Il.
! Barnes of Chicago. working under Gen.
| Charles G.. Dawes, Director of the
Budget. and BY Assistant Secretary of
the Treasury Wadsworth. Secretary
Mellon said 1t was disclosed that con-
ditions in the bureau warranted the
! changes that were made Waste was
I found. lie said and Anticipated methods
resulted in the heavy !osses to the
\ Government
Reasons for "shnkeup.''
I Mr.. wilmeth declared that the bu-
reau. which employs nearly 5000 per-
sons OF technical ability. had reached
the highest point Of efficiency during the
time he was director. lie insisted he
was not sure whether ne mad any politi-
cal affiliations or not, as he voted last
\ in 1895. and could not recall whether he
had voted for a Republican or Demo-
\ crat.
| Administration officials said that the
Presidents order was not in the nature
of political move. 1t was pointed out
that one of the reasons for the general
shake up was the existence OF dssen-
sion among the various division chiefs,
and that conditions called for drastic
action 10 restore harmony.
! Attorney-General Daugherty said
| there was ample legal authority for
I tho course taken by the President. In
4 spite OF Mr.. Daugherty's view. however.
I tho civil Service Commission called to
the attention of the President for his
Information those sections OF the civil
service law which make It mandatory
TO serve employees with charges be-
| fore they are removed.