The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1923-11-03
|SaysBureau
Bills O.K.d
by McCarl
President Coolidge H ears
Complaint Of Head of Sem
ate Board Probing Vet
erans' Agency.
u. S. to Act on Graft

| Washington, Nov. 2.-Charges Of d.
legged graft and fraud in the veterans
bureau. now being aired before a sem
ate committee, were reviewed in full
for the first time today by the presi-
dent and his cabinet.
| 1t was decided, 1t Is learned, to put
every facility and energy OF the gov
ernment back Of prosecutions seek
ing to convict any person guilty Of
nisusing funds intended for the re-
lief Of disabled soldiers.
The prosecution will be both civil
and criminal. the first TO recover all
graft" possible and in the second
instance to put persons flagrantfy
guilty in Jail.
| McCarl's Powers Unlimited.
Senator Reed pennsylvania. who IS
directing the inquiry. said while at
the White House that one Of the most
amazing revelations Of the inquiry
into the expenditure of funds was the
unlimited powers given Controller
General McCarl of the Treasury de-
partment. 1t was on McCarl's ap-
proval that questioned sums were
paid to contractors. McCarl is a Ne
braskan.
McCari made the payment, he says,
without consulting any Of the govern
ment department concerned. and after
President Coolidge had expressed a
distaste to being called in TO act as
arbitrator. Senator Reed declared
that this power to authorize the pay
ment Of funds should be curbed just
as soon as congress meets. and Will
urge this action.
The Department Of Justice will i'm
mediately take over the work of Sc
curing evidence and preparing for in
dictments in cases of alleged graft.
II necessary. IL will establish a divi-
sion as comprehensive as the one
which is nov devoting it's energies
exclusively 10 the task OF prosecut-
ing persons guilty of defrauding the
government on contracts during the
lwar.
II was emphasized. however, that
the Department Of Justice will not
Interfere with the inquiry Of the
special congressional investigating
COMMITTEES. but will rely largely on
such evidence az developed by this
committee as a basis for action.
Coolidge Told Of Graft.
Just prior TO meeting with his cahi-
net the president held a long confer.
ence with Senator Reed. The sena-
tor Is understood 10 have gone over
with President Coolidge the evidence
already produced Of alleged graft in
the building Of hospitals and disposal
OF supplies. as well as evidence vet
TO be brought out.
The opinion Of Senator Reed vas
asked on the gravity Of the charges
and IL the evidence presented a sta.
alton as serious as indicated. He 10
said TO have told the president that
J the charges are such that they should
J De taken up at once by the legal de-
partulent Of the government and In.
oictments asked as early as possible.
Attorney General Daugherty was
able 10 tell the cabinet that the Da.
partrnent Of Justice already IN at
work on an inquiry and is receiving
from the senate committee such as
sistance and cooperation as it Is nos.
saele 10 obtain. He pointed out that
II would be more ADVANTAGEOUS TO
follow this course as the special com.
mittee has been working on the case
several months and would make ,t
, unnecessary for the Department Of
Justice 10 duplicate what already hs~
been done.