Evening star., 1924-05-21
SENATOR ATTACKS
FARM LOAN BOARD
Howell Charges inadequate Ae-
counts Were Kept of
Transactions.
N0HINEES ARE OPPOSED
Senator Glass Defends Confirmation
by Committee.

CHARGES against the Feoeral farHl
Loan Board and strong opposition TO
confirmation of the nominations OF
four members of the board were voiced
in the Senate yesterday afternoon by
Senator Howell of Nebraska, Repub-
lican.
crat, a member of the banking and
currency committee. declared that the
nominations had been approved by
that committee after complete
hearing.
Given Recess Appointment.
The nominees-Lewis j. Pettijohn
of Kansas, Elmer S. Landes of Ohio,
Merton L. Corey of Nebraska and Ed
ward F.. Jones of Pennsylvania
were given recess appointments a
year ago by President Harding and
their names were sent to the Senate
last December by President Coolidge.
Senator Howell charged that there
had been "a violation o. cardinal
principle of public policy. which
should be assessed against the b"ard
in the matter of the 8?no ntment OF
charles T.. Lobdell. its former chair
man. to the post Of fiscal asent: at a
salary of $4,000 per year. This ac-
tion ne declared to be unlawful pro-
cedure in the creation of new
official
Other charges included: "Looseness
and gross misconduct OF affairs in the
board. indicating incompetence, and
evidenced by the lack of books OF ac-
count.
Unlawful withdrawal and expendi-
ture of public funds to the extent OF
sS5.00o to $4,000"
'Looseness and neglect in disburse-
M
vouchers beink kept
"Misapplication of pubic funds. in
Guiding presents to employees and ad-
vances.
Opened Account Here.
The Nebraska senator said Commits
eioner Lobdell opened an account in a
local bank in December. 1922 with
$1,000 drawn from the Treasury, and
this account was supplemented from
time to time until February l6. 1924,
when a total of $4,000 had been de-
posted. This amount was drawn or
from time to time, the senator declared
without voucher or receipt
"One of the nominees" he continued
drew $4,000 on account of salary. but
was called upon to replace it.
Senator Howell said he had asked
at the boards offices for the books
records were kept by the Treasury.
Holds Records Incomplete.
AT the Treasury" he continued
IT was told they only kept an ac'
count Of receipts and expenditures
The amazing conclusion was thai
there have been no complete records
of the operation of this board, which
handled 1881, 100000 of public money
Senator Howell said his charges in
part were based on testimony taken
by the Senate banking committee in
the course of hearings CT the nom
nations.
The remarkable position was
taken by one commissioner" he
added, that he didn't see why any
books were necessary beyond checks
and correspondence as long as the
twelve banks were satisfied with
what they were getting"
Senator Glass declared the commit
tee had been entirely satisfied there
had been no carelessn ess in the
handling OF public funds" and pro.
tested against the matter beine
brought into the open Senate.
This is a subject for executive
session he declared. Members OF
the committee are prepared to con.
vince the Senate there that their an.
proval of the nominations was JUS
titled