Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-10-31
Tells OF CLASH
WITH FORBES over
HOSPITAL PROJECT

Washington, Oct. 30-Congression-
al influence was brought to bear to
block plan Of the Veterans Bureau
to abandon the projected tuberculosis
hospital at Excelsior Springs, Miss
ouri, the senate investigating COM
mittee was told today by E. l.. Morse,
prominent in Republican politics in
Missouri and manager in that state
of the Lowden campaign for the Re-
publican nomination in 1920. Morse
subsequently sold the plant to the
government for $116,100.
The property consisted of the
Morse homestead and ten additional
acres and was leased to the govern
ment under an agreement which it
has been charged before the commit
tee was rushed through by Erwin
Laporte. then assistant secretary of
the treasury, on the last day of the
Wilson administration despite rec
concentrations from the public health
service that the place was not suit
able for hospital. Further adverse
reports were made by medical men,
the evidence showed, and in June,
1922, the Veterans Bureau decided to
abandon the project.
Morse testified that when he was
notified of this decision, he came to
Washington to use his influence with
senators and representatives, who
protested to the bureau He said he
saw - senators and that one of them,
Senator Bursum, Republican, New
Mexico, took the matter to the White
House. Later, the sale was consum-
| mated.
OF I'D 20
more than two hours and near the
close of his testimony, he appeared
to be on the verge of a physical COL
lapse as result that the commission
! recessed for 10 minutes. At the time
he was being asked questions pre-
pared by counsel for Charles r.
| Forbes. former director of the bureau
| and relating to conferences with
| Forbes.
| The witness testified that Forbes
7 had appeared very belliGerent"
against the Excelsior Springs project,
but denied that he had any alterca-
| ton with the then director He den
| led also that he had been ordered out
! or Forbes office here. but said he fire.
| quently had been compelled to wait
( many hours outside of the Office
without ever getting opportunity to
see Forbes.
They kicked me around here like
! a ball. he added.
| When you saw Colonel Forbes
+, was there bitterness of feeling on his
i part and yours" he was asked but
/ the question never was answered. as
F, Morse appeared on the verge of col
+, lapse and the recess was ordered.
I Morse told the committee that ne
had informed Forbes that if he con-
: tinued to spend in new construction
! az the hospital the money required of
] nm under the lease contract and the
; government then failed him. he
! would be busted" He added that in
| an interview with the late Charles TT
/ Cramer, head of the legal division of
| the bureau in 1922. he had been told
tnat 1t had been decided to turn the
| property back To him and reimburse
MIN for his expenditures in addition
10 the rental already paid.
mat meant, as 1 figured it,.
Morse said. "a loss to the govern
ment of 100000 and a gain to me
I OF that amount. and 1 said then
do it, W
Morse asserted that he told era
iner that if the project were aban-
doned it would create a scandal in
Missouri because the people of Ex-
celsior Springs had assisted to f.
nance the project and he would be
! charged with having pulled off
some crooked dear.
Major General O'Ryan. general
(; counsel for the commission. read
INTO the record an affidavit of an
/ praisal of the value of the original
plant at only $4,000. Morse told
the committee he would be willing
TO have another appraisal made and
10 refund any difference there
might be between the sum fixed by
the appraisers and that paid b. the
government. lie proposed to APP
point one appraiser the government
one, and the two to select a third.
When Morse concluded General
Organ made this statement for
the record:
II told Mr. Morse. who was ayita :
! Ted this morning. that the purpose
J OF The lengthy examination of him
and the questions asked by the
members of the committee, was not
Tor the purpose of reflecting upon
his integrity. but because all con-
cerred in The investigation were
alert to bring out the manner in
which trusted representatives of the
government 'were transacting the
important matters that were en-
trusted to them in this work of aid
ing the disa bled soldiers and that
we had not intended by this cross
examination to reflect upon his
right 10 obtain for his property any
price within reason. so long as there
was not involved on his part any
corrupt bargain"