Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-11-02
SENATE PROBE OF
VETERANS BUREAU
REACHES TREASURY

Washington, Nov. 1.-The trail of
the senate investigation of the Vet
erans' Bureau led again today into
the Treasury, the general accounting
office and the public health service.
Also it doubled back over part of the
route of the trip of Charles r. For
bes, former director of the bureau,
to the Pacific coast in the summer of
1922. on which he was accompanied
by Mr.. and Mrs. Elias II. Mortimer.
Witnesses included w. L. Gordon,
an attorney in the office of Comp
troller General McCarl. who settled
the claim of Matthew O'Brien. San
francisco architect, for $4,000 after
it's disapproval by Director Hines. of
the bureau; Ewing Laporte, of Pitts
burSh. former assistant secretary of
the Treasury, who approved the
lease agreement for L. l.. Morse's
homestead at Excelsior Springs, Mo-:
Surgeon General Cumming, of the
public health service, who took issue
with part of Laporte's testimony, and
John d. Milliken, q former employee
of the Veterans Bureau, who ac-
companied Forbes TO the Pacific
Goa ST.
Then tense moments OF the five
hours hearing came during the ex-
animation of Gordon. He frankly
told the committee he had settled
O'Briens claim for the re -drafting of
plans for a hospital at Livermore.
Calf. on the basis of brief filed
by the architects attorneys. Lyon
and Lyon. Of this city, a letter from
director Hines disappearing the pay
ment. and the contract between the
bureau and O'Brien.
| Cross questioned by members OF
| the committee, Gordon said he had
not referred the matter to either hi
| superiors or to the Veterans Bureau
ard it was developed that approval
| of the claim was made within a few
! days after the filing of the brief for
| the claimants. The witness told the
committee, however. that under the
! terms of the contract, which he char
| acterized as "improvident," there
was left no course for the govern
ment except to make the payment.
| Pointing TO provision in the con-
! tract that in case of dispute the
! president would be authorized to ar
| bitrate, Gordon said President Cool
| idge should have acted. He testified
| that he called this clause to the at
| tention of O'Brien's counsel and that
1
what purported to be a copy of a
-, letter from Secretary Slemp, saying
| the chief executive DECLINED to ar
| bitrate as he had been informed by
| Mr.. Hines that the matter had been
referred to the general accounting
| Office for adjustment. Gordon said
| he did not see the letter which
| O'Brien'S attorneys wrote to the
| president.
Senator Walsh. Democratic, Mass
achusetts, questioned Gordon about
I some memoranda which the senator
produced from the file of case in
the general accounting office. He
| noted that on one of the sheets were
| the figures ":3300 multiplied by IL"
| The witness said some figuring prob
ably had been done on the sheet be-
! fore the memorandum had been
written on it.
Senator Reed. Republican, Penn
| Sylvania, chairman of the committee,
returned later to this subject, obser-
| wing that 1900 was ten percent of the
amount of O'Brien's claim and that
somebody had figured on forty per-
cent of that"
THAT had no reference to this
| matter" Gordon replied. ut never
| was mentioned to me. nor was that
memorandum shown to me. 1 don't
think it means anything"
II hope it doesn't" remarked SEN
ator Reed.
Gordon. who testified that his SAL
airy was $1,000 year. said the men,
| oranda, which it appeared were
written by a Mr.. Naylor. of the gen.
| eral accounting office, probably had
been prepared after the settlement
was made. He called attention that
they contained some of the details
of the details of the matter.