Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-03-05
Stir Created by Evidence in
Connection With Veterans
Bureau Case Rivals That Of
Recent Oil Disclosures
u. S. GRAND JURY TO GET
CHICAGO INQUIRY FACTS
Fraudulent Liquor Permits 1ssu-
ance and Misuse of U. S. Files
Indicated by Evidence-Presi.
dent Orders Prompt Prosecution
by Department Of Justice.

Not only the charges against two
members of Congress, but evidence
relating to other suggestions OF
wrongdoing by officials in Washing
ton as well, will be laid before a
federal grand jury here Immediately.
The subjects expected to come
under inquiry involve charges that
one or more high officials used Off
cial information for purposes of
speculation; that liquor permits
were wrongly procured through use
of money, and that official govern
ment files were turned over to per-
sons not entitled to them.
Creates Stir In Capital.
For the present, no official will dis
cuss details Of these charges nor
disclose in what direction the inquiry
may lead. The development has
created a stir in official circles, how
over, second only to that which fol-
lowed the Oil disclosures.
President Coolidge announced last
night that the charges against the
two members OF the House involving
acceptance OF money in connection
with the release of federal prisoners
would be thoroughly investigated by
4 grand jury. Prior to that the Sem
ate veterans committee had held two
sessions to consider the charges and
2 resolution for an Investigation had
been introduced in the House.
John w. H. Grim, who was in
charge of the Chicago investigation.
has conferred with members Of both
Senate and House, but has declined
TO furnish them the names Of those
involved or any details. taking the
position that the evidence requires
further development before any of II
can be divulged. 1t was developed
incidentally at Chicago. in connection
with the Veterans Bureau inquiry
that resulted in the indictment OF
Charles r. Forbes.
Reports to President.
Mr.. Grim also has reported the
facts to the White House, leaving to
President Coolidge the decision as to
what action should be taken. To-
days announcement was interpreted
as an indication that the executive
was prepared to demand a complete
who might be involved.
The investigation resolution intro
duced yesterday in the House by
ferred to the rules committee, but
Chairman Smell said today that no
action would be taken on 1t for the
present. He reached this decision
who told him no information could
be furnished a congressional COM
mittee without embarrassing the Justice
Department in It's presentation Of
the case to grand jury.
White House Statement.
The Presidents position in the mat
ter was revealed in a statement made
public at the White House last night
by c. Bascom Slemp, his secretary, as
follows:
Acted With Promptness.
THE President, Immediately on
noting the newspaper reports this
morning that evidence before tho
grand jury at Chicago implicated two
members of Congress. gave immedi-
ate instructions to Mr.. Seymour, act
ing attorney general, and reiterated
the instructions again this evening
to Mr.. Seymour that prompt and i'm
mediate steps be taken to place the
evidence before grand jury and
that he proceed with every diligence
in the prosecution Of the cases."
Mr.. Grim made public last night
q section Of the Chicago grand tury's
report relating to the alleged activ-
tiles Of the two members of Congress
as follows:
Details Withheld.
Incidental to the investigation Of
matters Of which this grand jury
had jurisdiction certain other facts
not directly pertaining to the Vet
Grams Bureau were developed by
counsel for the government, which
we regard. of great Importance.
There is no jurisdiction of them In
we are assured by Mr.. Grim that he
will lay them before the Attorney
General and President for considera-
ton. We do not feel that 1t would
subserve the best interests of the gov
eminent for this. jury to make public
at this time the details of these
transactions.
"This Jury feels it will suffice to
report to your honor that they in
yolve (1) speculation by one or more
it has been asserted that Official in
formation was used for purposes OF
speculation: (2) that certain sums
Of money were paid to two men,
beers of Congress-; G.. that posses
sion Of a file of one 9, the depart
rnents for about q moplh was had by
persons having no on .ial connection
with such departments; 90 that
money was accepted by certain indi-
viduals (not attorneys) for the pur-
pose Of obtaining clemency for pris-
Oners through their intimacy with
officials; 60 that money was col
1ected by certain individuals mot
attorneys) for obtaining through
euch intimacy permits FOR intoxf-
eating liquor" -.
Probe Requires Time.
Mr.. Grim also made public this
statement as to his attitude:
II am working on all Of these mat
tiers; can't finish them In q day.
It may require many days for me to