The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1924-02-08
Bond
in Treasury
Are Alleged.
Probe of Bureau Of Engraving
Asked in House-Duplicate
Securities Issued, Is
Charge.
Loss Denied by Mello1

Washington, Feb. 7.-Smoldering
embers of the bureau of engraving
controversy. which first blazed up
two years ago with a wholesale dis
misaal of employees by President Hard
ing. has again been famed into
flames.
Charles B. Brewer, Department Of
Justice attorney who investigated
charges of duplication of government
securities, brought the case into the
open today with the filing of sensa-
and despite denials by Secretary Mel
lon and other officials that Brewers
allegations contained merit, Repre-
sentative La Guardia. republican.
New York, began steps by introduc-
ing a resolution of inquiry to force
a congressional investigation.
The charges of Brewer were con-
tained in copy of a report he had
sent previously to President Coolidge
and Attorney General Daugherty and
were made public when they were at
tached as exhibits to an injunction
suit filed here against government
officials whom Brewer said were in
terfering with his inquiry.
Hindered i'm Efforts.
They set forth that there had been
duplication of bonds; that the treas
ury had suppressed knowledge Of
them; that treasury officers had
thwarted Brewer In his attempts to
uncover the condition, and that du.
plicates of bonds had been destroyed
in the treasury.
Secretary Mellon, on learning that
Brewers charges had been made pub
lie, said that for every bond which
has been issued, its face value had
found its way into the treasury
vaults. He added that there had been
duplication of numbers, but there had
been no loss to either the public or
the government. He attributed the
duplication OF numbers To mechanical
errors, which Brewer had said was
not the case.
Brewers chargesS covered a wide
range. the main features of which
have been known to treasury officials
for many months and which they said
had been under investigation and dis
proved. They included the assertion
that a clique ewayed the actions of
the Treasury department and that ].
W. McCarter. former associate regis
ter of the treasury. had complained
of being discharged for bringing com.
plant to the notice of the treasury
l.. nit
regularities.
Bad Bonds Alleged.
Brewer also charged spurious Sc
curities nad been issued from the
treasury and that duplicate bonds
had been traced ITO treasury sources
from surrendered bonds stolen from
treasury vaults"
The report of Brewer disavowed
that he had caused the dismissal OF
bureau employees by President Hard.
ing and set forth that the president
had been informed of many irregu'
Iarties" at the bureau before Brewer
entered the case.
Treasury officials said today that
the department would make reply to
Brewers suit, which seeks to prevent
the treasury from recovering bonds
which the attorney has been using In
his inquiry. These bonds We're given
to Brewer on his receipt. They also
said that a detailed check had been
going forward on all OF the charges.
but that no alarming condition had
manifested itself.
Among the conclusions Brewer drew
from his investigation, the report said
were these:
Hundreds of Duplicates.
There are between about 5000
known pairs of duplicate bonds and
about 1000 known pairs of duplicate
coupons. Duplicates still coming in.
THAT duplicates are being held by
parties with guilty knowledge await
ing destruction of the bonds which
would prove their duplication.
THAT much that could be told has
been held back by employees who fear
the consequences.
THAT treasury officials from the
start have given no real effort to
officially determine the cause of dupli-
cation: that some impelling motive
has caused them to intlmidate EN-
ployes; to join other enemies of the
writer in other war fraud cases'who
are officially on record as seeking his
discharge for two years; and to them
selves attack him In the public press;
and TO falsely assail his honor In the
same medium; to defy President
Harding TO deceive Mr.. Mellon. and TO
temporarily deceive President Cool.