Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-09-18
INSISTS. CONGRESS
CAN RULE BUREAUS
SteagaII, at Bond Probe, De-
CIares Control Over Execu-
tives Is Proper.

The question of the authority OF
Congress over departments in the ex-
ecutive branch of the Government
flared up today in controversy of
some heat at the hearing by a House
Investigating committee into alleged
irregularities in Government bonds.
Representative Steagall, Democrat,
Of Alabama, charging that the Treas
ury Department resented" the fact
that Congress could demand its rec
ord, declared that he was ready to
institute proceedings in Congress ito
test out the power OF Congress to
see whether We have free Govern
ment or are ruled by boards and bu-
reaus and Will allow departments to.
set aside the will of Congress"
The matter arose when James F
Macoughtry, manager of the securi-
ties section of loans and currency of
the Treasury Department. appeared
before the committee by special or
der of Secretary Mellon upon request
of the committee because, as explain
ed by the committee chairman, Repre-
tative McF'adden, Macoughtry had
refused the committees investigator
access to the books at the Treasury
Department.
Will Lock Books in yauIt.
After a dispute between committee
members and representative of the
treasury concerning the custody of
the books. it was agreed they should
be presented daily before the commit
tee for investigation and be locked up
al night in the Treasury vaults.
Replying to charges by members of
the committee that the Treasury has
attempted to block the investigation
f. u. Await of the Treasury's war
loan staff, explained that the investi-
gators under Charles B. Brewer after
about three years had completed an
investigation. had reported to the
Treasury and that Secretary Mellon
had made his final report on the
whole matter before the President.
When this committee was ap-
pointed to investigate the charges"
said Mr.. Await, 1T was thought there
would be an impartial investigation.
When Brewer appeared again to
investigate his own charges, the under
secretary. Mr.. Winston, wanted to
know what Brewer was doing again
IN the department." 1t was this. Mr..
Await explained, which prompted Mr..
Winston to notify Mr.. Macoughtry to
withhold the books until Brewer
should submit more specific and writ
ten authority as to what he wanted
Probe May Last Weeks.
Rising to rebut the Treasury state
ments, Brewer charged that he had
been repeatedly blocked in his in
vestigation by the Treasury Depart
ment. From one-half to two thirds
of my time was taken in overcoming
obstacles of the Treasury Depart
ment.' Brewer charged, "otherwise I
would have proceeded rurther"
W. S. Broughton, commissioner of
the public debt, explained that the
books in question were valuab Bile, basic
records of the department, but that it
would be agreeable to leave them
with the committee during the day
in the presence of a Treasury rep
resentative and have them locked up
at night. The books in question
showed a shipment of government
bonds with details of dates and con-
Signees.
The committe then launched into
questioning of Commissioner Brough-
ton, who outlined the proceeding of
shipping and redemption and destruc-
ton of Government bonds.
Indications today that the hearing
might last several weeks. with the
proba bility that the committee might
find it necessary to travel to out-of-
town points to investigate records at
Federal Reserve banks.