Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-02-03
VETERANS BUREAU SET
TO MEET BONUS CLAIMS
Completes Machinery Enabling 1t to
Meet Requests for Loans on
Certificates.

end of a certain period sends in the
certificate and the note to the Veterans
Bureau for reimbursement.
The Veterans Bureau, for its part,
pays the bank what the veteran owes
it, and then will deduct the money
loaned, plus the interest accrued on
that amount. from the face value of the
matured policy Thus veterans who
have borrowed and who have failed to
pay back what they have borrowed
will find anywhere from 500 to $500 or
$500 deducted from their check when
the time comes for the Government to
| pay the principal of the matured en-
dowment policy.
Frauds have arisen in this way.
400 Face Prosecution.
A veteran will either try to borrow
on his certificate before it has a loan
value or he will seek to change the
face value. Some frauds have occurred
where a dummy not entitled to the
certificate has tried to borrow on it by
using the signature of the owner. The
percentage of frauds is small, but the
total runs up into many hundreds.
Under the law the Secret Service of
the Treasury has the duty of running
down these irregularities and prosecut-.
ing those who violate the law. In the
fiscal year ended July l, 1928, the Sc
cret Service was called in on nearly 400
cases And hardly a day now passes
but what a new case is referred to it
for investigation.
veteran got a certificate on July !,
1926. Under the law this does not OBJ
tain loan until July l. 1928. What
ever the reason, the owner wants some
money. So he exercises his ingenuity
to change the date on the certificate
takes the document to the bank and
borroWS whatever the traffic at that
particular instant will stand.
Some banks detect the change and
refuse the loan. Others will be more
careless or the change will be made too
skillfully to be detected by a casual
inspection. Then the borrower fails
TO pay back the principal of the loan
ana the note and the certificate are.
sent to the Veterans Bureau.
Experts Detect Fraud.
Here the documents come into the
hands OF experts, men and women
trained in detecting fraud. The change
may De In the date, or it NAV be in
the Signature, or the total, of the uoI-
ICY. Whatever it is, the handwriting
experts in the Office of Director Hines
are pretty sure to find it.
quick examination of the facts
sumcient, usually, to show whether
Ine case Is one that warrants investi-
saClon py the Secret Service If it is a
case Tor investigation a Secret Service
operator is assigned to the lob to rim
down the culprit, and where necessary
10 protect the interests OF the real owner
OF the certificate.
The Secret Service makes a renort tn
the veterans Bureau, and where pros
ecutlon Is necessary the Department
OF Justice takes a hand. Under these
CONDITIONS 1t is not easy for those
guilty OF fraud on adjusted compen-
satlon certificates to escape,
veteran with sickness in his fam
lly may try to borrow on his certificate
before 1t has a loan value in order to
get money to pay a doctors or hos
pltal bill. The Secret Service will ascer-
taln the facts and tell the man he has
violated the law, but under such cir
cumstances the courts are not likely IN
deal severely with the offender.
More serious are those cases where a
man robS another veteran of his COM
penSatlon and seeks to borrow money
on certificate that does not belong to
MN. SUCH attempts have not been al
together rare, and if the facts show de-
nberate fraud the offender NAV 60 to
Jail.
Bureau Faces Big Task.
The Veterans Bureau faces TODAY
another big job. Congress last Spring
passed the emergency officers retire.
ment bill after legislative fight that
lasted for several years. Under this bill
emergency World War officers who are
50 per cent or more disabled as result
OF their military service are to be placed
on the retired list of the Army with the
pay and allowances given to the retired
Regular officers of the corresponding
grade and service.
The adjutant general of the Army
gives the Veterans Bureau a list of
emergency officers, with their. services,
their hospital and wound records, ETC.,
and the veterans Bureau must decide
whether IN each case an officer under
the requirements of the act is entitled
to compensation or not
The veterans Bureau Is utilizing it's
full machinery to speed up the claims
under the emergency officers act.
About 1000 former officers have made
application for retirement privileges.
and the Veterans Bureau has already
accepted about 1000 of these, who
Will go on the retired list of the Army
with pay and allowances.
1t is examining as rapidly as it can
the records of the other 5000 applicants
for the benefits of this legislation. and
before it completes its work, 1000 or
more other former officers should have
come under the benefits of this legis-
lation.
For the Veterans Bureau the war is
not yet over. With its 1000 or 5000
employees it is one of the busiest Of
fees in Washington, and its officers can
never tell when Congress, by change
! or an amendment to the law, or by new
legislation, will not give it additional
work to do.
Copyright, 1929