The Birmingham age-herald., 1924-01-08
VETERANS BUREAU.
 FRAUDS CHARGED.
Forbes And Number Of 0th- CTS Named In Report
 Of Probe

WASHINGTON, Jan. 7.--<By Asso-
 ciated Press.)-Fraud and corruption
 existed in the Veterans bureau under
 the dictatorship of Charles R. Forbes
 John F. o'Ryan of New York, general
 counsel for the Senate veterans com.
 mittee, asserts in a report filed with
 the committee.
 Moreover, ORyan charges that For
 bes himself twas a leading actor il an established conspiracy to defraud the government" in hospital con
 tracts, and he names as other parties ley, president of the Hurley -MasoI
 company of Tacoma, Wash, J. W
 Thompson, St. Louis contractor; the late James W. Black of Chicago and
 Elias H.. Mortimer of Philadelphia
 the chief witness in the committed
 public hearings.
 Ewing Laporte of Pittsburg. an as
 sistant secretary of the treasury ir
 the Wilson administration. and F. L
 Morse, prominent in Missouri repub
 lican politics, are assailed in connec. tion with the purchase of Morse's homestead at Excelsior Springs, Mo. for a hospital at $9o,000. O'Ryar charges that this project was forced tupon the public health service by tn ijoint action Of Laporte and Morse Characterizing Es edrimfnaf the sale of bureau supplies from tn KefIy Thompson company of Boston O'Ryan attacks Forbes and Luiet Com Charles R. .o'Leary, U. s. N, in connection with the sale. Commander O'Leary at the timew as in charg, of the supply, division of the tveter-
 ans bureau.
 Fraud In Sale of Site. O'Ryan charges that fraud was committed" in connection with the
 sale of the Livermore. Cal. hos pital site to the government by Lucien B. Johnson and asserts that Johnson's s sworn testimony as to the disposal of the profits was "brazen in it's ob- vious insincerity."
 AM the facts and circumstances, as we'll as the record" O'Ryan says 'indicate conclusively" that Mat hew O'Brien, San Francisco archl- tect, was appointed to draw the plans other purpose than to give him job at the expense of the government and without relation to the neces- sity of his employment or his ability to execute his mission"
 Under a subheading in his report
 dishonesty and neglect in manage
 ment ORyan declares this opens up
 "a very disagreeable chapter in the
 history of the veterans bureau"
 "No American can read it," he says
 "without a feeling of disgust for
 the manner in which the great work of aiding the disabled was prosti- tuted for lf-aggrandisement and greed. The testimony of witnesses, the exhibits, the records of the bu- reau, tell story of almost unparal- leled waste, recklessness and mis- conduct"
 Improvements Urged.
 Reciting the reforms in admins tration of the bureau under Director Hines. O'Ryan submits a number of recommendations for further in1- movements and points to matters that need correction. He declares the medical service is inefficient, bI ing over manned and lacking in nor ale: that there has been great waste
 and ineffective effort in vocational training and that political influ-
 ences has determined many appoint ments made to positions in the bu- reau Delay in adjustment of claims also is dealth with at length. Delay in hospital construction IS treated and Forbes is attacked se- yerely in connection. O'Ryan adds, however. that the progress now be- ing made in hospital construction gives assurance of adequte facilities in all parts of the country within short time.