New-York tribune., 1922-04-06
Bureau Custer
Renews Liberty
Bond Charges
New Director Admits There
NAV Be Something in Ac-
eusation That Millions of
Implications We're Made
Senate Takes Up Dispute
King Would Air Dover-Blair
Wrangle: Mellon Denies
Internal Revenue Sweep

,-.o,, ~. TrlbuHes Washington Bureau
WASHINGTON. April 5.-Charges
.h.+ Government securities were dupli
Gated as far back as September, 19Zo,
bv EMPLOYEES Of the United States Bu-
,eau Of Engraving and Printing were
revived to-day in connection with Pres
dent Harding's sweeping discharge OF
the director of the bureau and twenty
,jcht executives last week. While Sen
ators and Representatives attacked and
defended the Administration for It's ac-
ton in summarily dismissing veteran
employees, the President conferred
with the new director, Louis A. Hill, on
the work of the bureau.
Other Developments in the contro-
yersy included the issuance OF denial
by Secretary of the Treasury Mellon
that q general reorganization in the
Bureau Of Internal Revenue was to be
made, and the introduction of reso-
luton in the Senate by Senator King,
OF Ctah. calling for an investigation
INTO the so-called abuses in the Bureau
Of Internal Revenue. In his denial
secretary Mellon said:
MY attention has been called to the
reports which have been appearing in
tbe press predicting general reor-
aanization of the Bureau of Internal
Revenue and the removal of certain Of
fcers and heads of divisions.
Demands Efficient staff
These reports do not emanate from
any official source and are absolutely
without foundation. No such reorgani-
zation is now or has at any time been
contemplated. 1t is my desire that the
Efficiency of the bureau should be
maintained at the highest possible
standard, and with that end in view ]
shall expect every employee of the bu-
rcau to give the Commissioner and his
deputies their loyal support and COM
piete cooperation"
After his talk with the President
Director Hill indicated that there
m ght possibly be something" in the
charges made in September, 1920, by
tne Assistant Register Of the Treasury
a that time, J. ". McCarter. Secre-
irrs Of the Treasury Houston soon
a',-r issued denial of the charges.
Mr. Hill was uncommuuicative in re-
egl To his conference with the Presi-
dent and the subjects actually under
assigned zoe men at the bureau to
assist agents Of the Department Of
j0stc cc engaged in making complete
avei. o. the bureau. This is always
dci re when the headship Of the bureau
oaeaaes hands md before the new
UeetoI .igns Tor the amount of money
I'D securities ON hand. He dismissed
AcCarteys 1929 Charge with d sbrus
aa5 the admission that there might be-
N' fouodation for the complaints.
The White House has kept silent in
regard to Tho s'orm created here by
2 wholesale ii. charges. 1t was in
ed by . Cabinet l0eet,no' to-day
az The President 3a have som cthirg
- ay ~ 1oeard to ;hc matter later
Ire week.
Liberty Bonds involved
i7 Charge made in McCarter's
.ettor Of i92D we're To tho effect that
many miiious of dollars in duplicate
numbered Liberty Gords are IN cir
collation. i'm the United States. He
Charged also that millions of dollars
woith of other Liberty bonds, which
were redeemed by the Treasury, but
never cancelled We're again in circula-
Ton. Many such bonds have been
stolen, McCarter charged further.
IN his letter he gave long list of
bouds with tteir 0umbcrs and denomi-
nations, amounting TO millions of dol
lar which, he declared, were redeemed
snd reached the paid security vault
just rs they were originally issued.
without icing Cancelled or marked
paid"
NcCarter asked an explanation why
billions of dollars worth of such Ger
tidcatcs. payable to bearer not can
ccled and not bearing the mark of
paid or surrendered" but which we're
ready for circulation, had been per-
mtted to pass through the hands CT
numerous unbonded officials and
clerks of the Treasury until they
reached the division of paid securities
ior delivery to destruction committees.
McCarter asserted further that on
July Il, 1919 $4,000 in Liberty bonds
vas stolen from one Of the division
chiefs of the Treasury.
senator Kings resolution calls for