New Britain herald., 1923-10-31
$4,000 PAID FOR
PLANS never USED
Hines Tells Of EIorbltant Fees
Paid 10 Architect
CLOSE PROBE OF BUREAU

Another Witness Tells OF Govt Buy-
ing Hospital Site for 100000
which Cost Owner sfe.ssT Pus
s2s.s7i In Improvements.
Washington, Oct, si.--rayment OF
an additional $4,000 20 Matthew
o'Brien. a San Francisco architect.
TOR a revision OF his plans for a gov
ernment hospital at Livermore. CAL.
10 make them accord TO the terms or
his original contract was disclosed be-
fore the senate veterans committee.
Director Frank T. Hines. OF the vet.
Grams bureau. testified that the pay
ment had been made by Comptroller
General Mccarl over his protest. This
sum brought TO approximately $97,-
600 the total O'Brien has received for
his plans. which never have been used.
The original contract with o'Brien.
Gen. Saids said, provided for plans for
hospital to cost not In excess Of $1,-
600. 900. Upon the completion OF
those plans bids were invited and the
lowest tender was $2,100.oo0. Be-
tween July 81, 1872. and January 2S.
1923, O'Brien was paid a total OF
s64,4lG. representing. General Hines
said, fee OF three percent on the
lowest bid received.
All Bids Rejected.
All bids were rejected, the direc-
tor testified, and O'Brien undertook
10 alter his plans as to bring the cost
within the original $1,600,000. For
this work he submitted a claim OF
$4,000, which General Hines disap-
proved. The matter was referred to
the comptroller generals office, ana
on October payment of the full
amount of the claim was authorized.
General Hines read into the record
a. letter which he subsequently wrote
Mr.. McCarl, protesting against the
payment and asking that steps be
taken to recover from O'Brien the
sum paid. He said he had received
no acknowledgement of receipt of this
letter.
Got Speedy Action
q. J. Boughton, associate general
counsel of the veterans bureau, testi-
fled that O'Brien's claim was sent to
the comptroller generals office on
September 10, 1928, and allowed ~
days later.
"within our experience" he added,
'that is a short time to obtain the ac-
tion of the general accounting office
even in case where there is no pro-
test against the claim"
The witness said also that this was
the only case within his knowledge IN |
which claim had been allowed after |
disapproval by the director Of the |
bureau.
The certificate of allowance was
signed "E. Richards for the comp |
troller general by Z. l.. H."
The warrant for payment was sign !
ed "E. Richards for the comptroller !
general by G. NJ"
Made Big Profit
Lucien b. johnson of San Francis |
co, who sold the Livermore hospital |
site to the government for $105,000
testified that he bought the land in
',SlOpOlB Law liOAh tAO SICoLd olduCd
Wine company for $19.257 and before
hes ale to the government, put on 1t
costing s26,674, includ-
ng residence, garage and other
buildings.
Il at no time tried to sell this
to the government" Mr..
Johnson said, adding that he first was
approached about sale by Thomas
o'Day, a real estate dealer, in Sep
ember, 1921.
month later 90-day option on
he tract was given to Frank Tynon,
IN employe of O'Day.
The price fixed in the option was
100000 but later two other options
we're written and the time extended
en- days. Provision also was made
hat johnson was to receive q net
price of s77,5oo and the witness ex-
planned that the remainder was to be
he agents commission.
A decd to O'Day was made out but
he did not buy the land before the
option expired. On the day after the
johnson said the govern
nent made hi man offer of $105,oo0
or the 221 acres in the site and the .
ale was made on that basis.
John r. Organ general counsel
or the committee read into the rec
'rd telegram from Charles r,
forbes former director of the Vet
rams bureau to l.. T. Grant, then
district manager for the bureau of
San Francisco dated Washington,
January "a, 1922, which said:
Offer sto5,ooo for Livermore site.
Wire your opinion price quoted"
In November 1922 Charles r.
'ramer then general counsel for the
'ureau who committed suicide last I
Iarch visited the site with O'Dsy,
ohnson said. A report on his visit |
which Gen. Organ read into the rec {
rd said O'Brien succeeded in getting {
5o-day option at price of $780, /
90 Johnson said he knew nothing {
4 this option III
A letter from Crsmer TO Forbes un- Z
er date of November 20, 1921 said r
he s1s0,000 price for the property :
Tas very reasonable" and urged its q
urchase. c