Evening star., 1933-12-19
Illinois Home Owners Man.
ager Resigns After Com
plants.
ENGINEER IN GEORGIA
DISMISSED BY P. w. A.
Slack Alleged to Have Promised
100000 for Bridges if Paid
fer Later Work.

Two Government departments were
called upon today by John H. Fahey,
chairman of the Home Owners Loan
Corporation, to investigate the activities
of various individuals who are alleged
to have attempted to secure commits
sions in connection with applications
for loans. Mr. Fahey asked that in
vestigations be made by the Depart
ment of Justice and the Post Office De-
partment.
This action followed the resignation
yesterday Of William J. Donne, man.
ager for the State of Illinois, whose ac-
tions as a corporation official had been
questioned by clients of the office and
by members of the Home Loan Bank
Board. It also follows the removal of
Searcy B. Slack of Atlanta, an engineer
for the P w. A Slack was charged
with attempting to collect a commits
sion on loan to the Georgia Highway
Board.
In making his announcement today,
Mr.. Fahey said that the Bureau Of In
vestigation Of the Department of JUS
tice has been asked to look into report
individuals to collect commissions on
loans. The Post Office Department was
asked to investigate possible use of the
gagees and mortgagors.
Complaints Received.
Eve are placing at the disposal Of
the Department of Justice such infor-
nation as we have obtained concerning
the activities of persons, who, claiming
special influence with this corporation.
have attempted to obtain commissions
from either mortgages or nortgagors,"
q mi NJ
sort are not limited to the State of Illi-
nois. We have information concerning
similar attempts in some of the other
States. Supplementing our own in
quirieS, which have been underway for
some weeks, We are asking the Depart
ment of Justice through the Bureau of
Investigation to carry the matter
through with a view to prosecution if
the evidence appears to be sufficient to
warrant that course.
Because we have every reason to be-
lieve that the mails have been used in
some of the cases of which we have
learned. We are also asking the Post
Once Department to make an invests
CATION" -...-,s Z ~ ?, So Z
At the same time, Mr.. Fahey an
nounced that Philip w. Kniskern, OF
New York, who has been assigned to
Illinois to advise relative TO the ap-
praisal conditions in that State, has Just
been retained by the Home Owners
Loan Corporation as consulting expert
on appraisal problems.
Solicitation "Intolerable."
Mr.. Kniskern is president Of the
American Institute Of Real Eestate Ap-
praisers. director of the National Asso-
citation Of Real Estate Boards and an
associate member Of the American So
ciety of Civil Engineers. and Is the
author Of various books and reports on
| appraisal questions which are regarded
as standard books of reference.
Slack, public works engineer-exam-
| iner at Atlanta, was removed by Sec
retary Ickes after he is alleged to have
| told Georgia officials he could procure
| S2,000,000 from Public Works for Stale
bridge construction if paid per cent
commission for work he would do after
resigning as P w. A. engineer
Donne submitted his resignation here
| yesterday following complaints against
alleged excessive appraiSals In Cock
County and against supposed brokers
and others who represented that they
could obtain prompt loans if paid a
commission.
In dismissing Slack, Mr. Ickes said:
ut is intolerable that any employe of
the Public Works Administration should
solicit fees on the false theory they can
deliver P. w. A. allotments-'
Ickes notified Slack: Following an
investigation you are hereby separated
with prejudice as engineer examiner
and your appointment as State en-
gineer inspector is Cancelled forthwith" !"
Governor Confirms Story.
The administrator said afhdavits were
obtained from Gov. Eugene Talmadge.
NJ. E. Cox, Georgia State highway en-
Board and from Slack himself, con
flrming this solicitation"
Slack, said the Public Works state.
ment, was reported to have called upon
Gov. Talmadge and in the presence of
| witnesses stated he could procure the
| s2,oO0,o 900 loan for the State Highway
Board provided he be paid the COM
mission for drawing plans and specifica-
| tions of the bridge construction. with
| the fee being adjusted to compensate
the Highway Department for surveys
already made.
The Public Works office said Its re.
port was that Slack offered to resign
| from P. w. A. if commissioned to pro-
cure the allotment.
1.-The deal was not made" said the
Public Works announcement, land
Slac,, said he made a gross error in
putting the proposition forward while
employed by the Public Works Admin
istration."
Direct Action Promised.
Ickes, in issuing the notification to
Slack, said. it was futile waste for an
applicant to pay fees to any volunteer
agents, representatives, lobbyists and
other false claimants to influence in
procuring loans and grants from the
fP w. A.
"A member of the P. w. A. staff who
seeks personal gain as in this instance
deserves no consideration and will re-
ceive none," said Ickes. when any
such instance comes to my attention
there will be direct action without
ceremony"
IckeS recently dismissed Harry
Berry. State p w. A. engineer for Ten
nessee, stating he had received informa-
ton that Berry informed persons public
Continued on Page 2, Column A.