The Washington herald., 1922-04-09
SECRETARY DENIES
GIGANTIC FRAUD In
ENGRAVING BUREAU
Rumors of millions in
Duplicate Bonds"
Branded False.
INVENTORY TODAY
Closing of Branches Adds to
Mystery and Places 1,5O0
On Furlough.

Statements that millions of dol
lars worth OF duplicate bonds and
securities haYe been issued from the
Bureau of EbFaving and Printing
were branded as false by Secretary
Of Treasury Mellon yesterday.
Despite this denial, the second
within the past week, the rumor of
Implications persists in many quar-
ters, and the investigation and in
ventory" by experts of the Treas
ury Department and Department of
Justice continue under a veil of Sc
crecy.
Meanwhile. President Harding,
whose Executive order reorganiz-
ing the bureau and summarily dis
missing twenty-seven of the divi-
sion executives uncovered the whole
matter. remains silent, while mem
bers of Congress- and union officials
are asking why"
Closing Adds Mystery.
The closing of the bureau, or
dered yesterday, has added new
mystery to the proceedings which
have grown out of the unexpected
reorganization.
Secretary Melons statement fol-
lows:
THE statements appearing in the
newspapers to the effect that a vast
volume of duplicate bonds and
other securities have been fraudu-
lently issued and are in circulation
are wholly without foundation.
There has been no evidence de-
veloped of any such situation either
in the Bureau of Engraving and
Printing or elsewhere in the Treas
ury Department"
1,5OO Employees on FurIough.
Last week Secretary Mellon de-
clared the stories concerning bond
Implications had been thoroughly
run down and found to be untrue.
However, the stories persisted.
finally leading to a second denial
yesterday.
approximately $500 employees of
the bureau-abCut one e-fourth of the
entire force-started on an indefi-
mite furlough, when the big printing
plant closed last night. During
their absence, treasury accountants
and Department of Justice men will
make a thorough inventory of the
stock in all paper handling" divi-
sions-those in which the furloughed
workers are employed.
Inventory Begins To-day.
Four days was set as the time
needed to complete the inventory
by one treasury official Director
of the Bureau Louis A. Hill be-
lieves that it will take longer.
u,
lose pay during their absence. In
stead their time off will be charged
against their annual leave o.
against the rotating furlough''
under which each employe is =
voluntarily idle three working days
a month.
The inventory OF the stock on
hand in the paper divisions of the
bureau begins this morning at 9
O'Clock. 1t will be conducted by .
joint committee of treasury. ac-
countants and Department of Just
ice Investigators. under the leader
ship Of Deputy Assistant Treasurer
TAFT. Assisting the committee will
be 61T workers attached to the dI.
visions closed down. The c"~rmit-
tee and the employees assist 4
VIII work daily from . to ) rntiI
the inventory is completef
VIII Go Back to Work In Groups.
The furlouShed employees will be
put back to work in groups. it was
stated at Director Hills office yes
terday. As the committee con-
cludes its auditing in the various
divisions the furloughed employees
of those divisions will be called
back.
Whether or not the Treasury rc-
partment will make pubic the re-
suit Of the bureau Inventory was a
moot question yesterday. Treasury
officials said S>At this had not yet
been decid1-