Evening star., 1923-10-31
U. S. LOST $4,000
ON HOSPITAL NEVER
BUILT, HINES SAYS
Continued from First Page.)

|
Continued from First Page.)
counsel Of the Veterans Bureau. tes-
t1hed that OBrien's claim was sent to
the controller generals office on Sep
tember 10. 1923. and allowed nineteen
days later --
within our experience" he added.
that Is a short time to obtain the ac-
tfon of the general accounting office
even in case where there is no pro-
test against the claim"
The witness also said this was the
only case within his knowledge in
which claim had been allowed after
disapprovai by the director Of the bu-
reau.
The certificate of allowance was
signed. 'E. Richards for the con-
troller general. by +. L. H." The
warrant for payment was signed. "E.
by D. G. NJ"
Lucien B. Johnson of San Fran
cisco. who sold the Livermore Hos
pital site to the government FOR
1000, testified that he bought the
Blanca Wine Company for $19,257,
anu before the sale to the govern
ment put on 1t improvements cost
ing $26,674, including residence,
garage and other buildings.
II at no time tried to sell this prop
said, adding that he first was ap-
preached about the sale by Thomas
O'Dea. a real estate dealer, In Sep
tember. 1921. The month following
given to Frank Tynon. an employe of
O'Dea
ORer Wus Reduced.
The evidence was that after IDEAS
option expired, Johnson wanted $112,-
600 for the property sought by the
government, which included seven
acres owned by the wine company
running through the general tract.
which Johnson owned Forbes coun-
tered with an offer of $l05.000. which
was accepted. -..--.-
Immediately after the , sale had
been consupmated. Forbes reported
to President Harding in letter
dated February 13. 1922.
I'm accordance with the under
standing reached at our conference
on Thursday afternoon, january I2,"
the letter said. Il have secured for
a consideration of S105,O0O three
parcels Of land, including all of the
property originally offered to the
bureau at s15O.000 and also two other
valuable tracts facing the country
road. so that the hospital site will
be bounded on the east entirely. by
the county road and will include all
of the creek known as Arroyo Del
original offer on account OF VARIABLE
water rights which the owner wish
ed to retain" -.-.-, -
You never offered to sell tn the
government for s15o.0oo. did your
asked Gen. O'Ryan.
No" replied Johnson.
A deed to ODea was made out but
he did not buy the land before the op-
tion expired. On the day after the
expiration. Johnson said, the govern
for the 22l acres in the site, and the
sale was made on that basis
John. f. O'Ryan. general counsel
for the committee. read into the rec
ord a telegram from Charles F.
Forbes: former director of the vet
| Grams bureau. to l.. T. Grant. then
district manager for the bureau at
San Francisco. The telegram was
dated dated at Washington. January IA,
Offer sI050o fer Livermore site.
Wire your opinion price. quoted"
-Cramer Visited Site.
Charles F. Cramer. then general
| counsel for the bureau, who COM
! mitted suicide last March, visited the
A report on his visit which Gen.
Organ read into the record. said
Cramer was seeking the assistance
of OBrien in obtaining an option.
Cramer report continued. O'Brien sue
ceeded in getting fifty day option at
a price OF s150.000, but Johnson said
he knew nothing of this option, and
insisted that ne couldn't have given
! an option, as he already had given one
to O'Dea
A letter from Cramer to Forbes. un-
der date of November 20, 1891, said
the s150,ooo price for. the property
| was very reasonable" and that IL
I rnte
tension probably could not be had.
"I cannot urge too strongly the pur-
chase OF this property" Cram ct wrote.
adding that the hospital would be the
finest in the country.
Tells OF Pressure.
Congressional influence wasbrough,
to bear to block plan of the
jected tuberculosis hospital at Excel
sior Springs. Mo, the Senate investi-
eating committee was told yesterday
by E. L. Morse, prominent in re.
publican politics in Missouri. and
| manager in that state OF the Lowder
campaign for the republican presi-
Dental nomination In 1920. Morse
subsequently sold the plant to the
government for s116,1o0
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 fifteen senators and that one OF
them, Senator Bursum, republican
New Mexico, took the matter to the
White House. Later the sale was
consummated.
Throughout his examination Morse in
sisted on answering questions in his
own way and going into detailed ex-
plantations. After Senator Reed and
Senator Walsh. democrat. Massachu-
setts. had taken turns at question
ing him, he was permitted to tell his
story In his own way
When Morse concluded, Gen. O'Ryon
made this statement for the record:
II told Mr.. Morse, who was agitat-
ed this morning, that the purpose of
the lengthy examination Of him and
the questions asked by members of
the committee. was not for the pur-
pose of rejecting upon his integrity.
but because all concerned in the in
vestigation were alert to bring out
the manner In which trusted repre-
sentatives of the. government were
transacting the important matters
that were intrusted to them in this
work OF aiding the disabled soldiers
and that we had not intended by this
cross-examination to reflect upon his
right to obtain for his property any
price within reason, SO long as there
was not involved on his part any
corrupt bargain"
49,