Evening star., 1924-09-17
BREWER RESUMES
ATTACK ON BUREAU
Inquiry Into Alleged Bond IT.
regularities Blocked at
Treasury, He Says.

| Charles B. Brewer today resumed
his attack upon the methods en-
ployed at the Bureau of Engraving
and Printing in a hearing before the
House committee investigating Brew
! er's charges of alleged duplication
Of Government securities.
In the course Of his statement to-
day in which he criticized many fea-
lures of Secretary of the Treasury
Melons report to President Coolidge,
on the production of bonds Mr..
Brewer charged that he had again
been interrupted in his EFFORTS TO
check up Mr.. Melons report. after
only two days of investigation.
Tells of Being Halted.
He had been given authority. Brew
er said. by Undersecretary of the
Treasury Winston to go through the
various records of the Treasury De-
pa rtment and looking deeper into
Mr.. Melons report. under authority
of the House Investigating commit
tee. After two days and a half of
such investigation. Mr.. Brewer said
he was "summarily" halted by J. F.
Macoughtry, head of the security
section of loans and currency. Mr..
Brewer said this action was taken in
spite of the fact that Winston had
given him a letter of authority, and
in spite of the fact that he repre-
sented a committee of Congress.
Renewing his general charges Of bond
duplication. Brewer declared there is
an open door somewhere along the line
where bonds are obtained. and such a
door is open in the process of destruc-
ton. l know some Of those lists are
wrong. and in some cases those bonds
have not been destroyed"
All on Genuine Paper.
He had never found. however. he ad-
mitted. any securities which were not
printed in the Bureau of Engraving and
on genuine Government paper. He
declared he thought many Of these
duplicates 'in error" and many OF
them "fraudulently issued"
Chairman McFadden Of the commit
tee aeked Harvey V Speelman, registrar
Of the Treasury, for further records re-
garding bonds which have been sent in
for redemption, as to the name Of the
bank from which they came and the
marks stamped upon them. Mr.. Speel-
man indicated there might be "a great
many instances in which there are no
marks but said he would be glad to
furnish any further records which the
committee requested.
Melons Report Criticized.
Criticizing the report of Secretary
Mellon. Mr.. Brewer presented the re-
suits of certain check-upS which had
been made by himself and Harold F.
Hanes, who is employed by the House
committee as an investigator. The
number of defective securities. Mr..
Brewer said as discovered by two
separate lists. one in the Bureau of
Engraving and Printing and the
other in loans and currency, totaled
about 100000.
In Secretary MELONS report, Mr.
Brewer said the Treasury admitted to
about 1876 duplicated numbers. which
the Treasury claimed had been made
by mechanical errors without loss to
the Government.
Of 1,7s6 errors against the 100000
defective bonds as listed in the other
two records. Mr.. Brewer said he and
Mr.. Hanes had been able to find only
six numbers which corresponded.
Thus" Mr.. Brewer told the COM
mittee. "the Treasury's theory OF all
these errors doesn't seem consistent.
Thinks Records Unrelated.
"I could find little agreement be-
tween records of various divisions OF
the Treasury Department-what the
reason is. l cannot see, except it be
carelessness."
Regarding the two lists. however.
at the Bureau of Engraving and
of defective bonds. many of which
were replaced by new ones called
makeup" bonds, Mr.. Brewer ad-
mitted that substantially those lists
agree, but in thousands of cases they
are different"
Mr.. Brewer criticized the policy of
initiating as an inadequate protection
and said that in his opinion the
Treasury placed too great confidence
upon the security of the Govern
ment's seal, which he declared might
have been forged.
Believes Some Fraudulent.
I'm this connection" Mr.. Brewer
said, II think many of these dupli-
Gates are in error and many of them
were fradulently issued"
The practice of the Treasury in
maintaining at Federal Reserve Banks
so-called revolving stock" of bonds
was sharply criticized by Brewer as
dangerous" He had warned Presi-
dent Harding of this. Brewer said,
and reported that shortly thereafter
on June so, 1922, this practice had
been stopped.
AS COnITONeTtIlS Tic dutHcHtIClLy
of Secretary Melons report regard
ing the shipment of bonds to Federal
Reserve Banks, Mr.. Brewer said, he
had found two cases in which bonds
had not been shipped as the Secretary
reported One of these he said he
found a record of at the Fidelity
Trust Co. of Baltimore.
Brewer appeared before the COM
mittee as it's special representative
assigned to the committee by the De-
partment of Justice. He is being as
sisted by Mr.. Hanes. At the hear
ings this morning were Chairman Nc
Fadden, Representative King of H.
linois, Representative Steagell of Ala
bama and Representative Stevenson
of South Carolina
N~ no,,A> A>ae. .nn%orkup q ale,