Evening star., 1939-04-01
Probers Pursue
Suspicious
Job Changes
OId-Aee Insurance
Bureaus Ex-Chiefs
To Be Called
BY GARNETT d. HORNER.


vestigating charges of favoritism in
the Government service today
sought the testimony of two former
directors of the Social Security
Boards Old-Age Insurance Bureau
to throw light on assertedly "suspi-
cious" personnel changes in the
bureau since their regime.
Declaring that abolition of posi-
tions and transfer of functions
might be used as weapon to get
rid of some employees and favor
others, Committee Chairman Ell
lender said numerous complaints
arising from such moves in the
Old-Age Insurance Bureau indicated
something suspicious"
Advised at a public hearing on
several of the complaints late yes
terday that Leroy Hodges. who pre-
ceded John j. Corson, present
director of the bureau, and H. B.
Seidemann. who preceded Mr..
Hodges, should be able to give Ill
Eliminating" testimony, Senator
Ellender said he would request them
to appear at the next hearing Mon
day afternoon.
Questions Lamatte.
Mr.. Hodges now is controller of
the State of Virginia and Mr..
Seidemann is treasurer of the
Brookings Institute. Their names
were brought up when Senator
Ellender asked Walter Lamatte,
former section chief in the Old-Age
Insurance Bureau who resigned to
take job with the Civil Aero
nautics Authority when his Social
Security position was abolished and
he was offered a transfer, if there
was anything back of these Job
abolitions."
Il believe that if you carry this
investigation far enough, you will
get to the answer to that question"
Mr.. Lamatte replied. He then sug-
gested the two former bureau di-
rectors be called.
Mr.. Corson insisted the reorgani-
cations involving abolition of some
jobs were designed only for eff
cheney and economy.
This development came after Mr..
Corson branded as "falsehood' q
statement by former employe.
Maj. H. j. Odenthal. that Benjamin
Beecher, chief of the field super
vision section of the bureau, got
has job through personal favoritism
by Social Security Board Chairman
Arthur j. Altmeyer.
Declaring he had "very serious
doubts that Maj. Odenthal him
self believed the statements he
made, Mr.. Corson requested that
all the witnesses be required 10
testify under oath. Senator Ellen
der said he did not believe this was
necessary. however.
Says Merit Ideals Prevail.
Mr.. Corson asserted there never
was any personal favorltism in the
bureaus personnel actions, declaring
that I'VE have developed a per-
sonnel system which will equal or
excel that of any other Federal
agency in insuring that persons are
selected, promoted, denoted and
terminated on the basis of merit
and merit alone"
Mr.. Beecher denied he ever had
said civil service employees gen.
orally were mot worth a DAMN as
had been charged by G. E. Luebben,
veteran employe with CAF-l1
rating who was denoted to CAF-lO
IN a reclassification of jobs after
Mr.. Beecher became his section
| chief.
Mi Corson pointed out that despite
Mr. Luebben's demotion in grade he
had been given an administrative
promotion that raised his salary
from $1,000 to $4,000 a year. Mr..
Luebben said, however, that his pres
ent salary was near the top of his
grade. cutting off his chance for fu-
ture increases unless he should get
a position classified higher.
Denying any discrimination against
Mr.. Luebben, Mr.. Corson said the
bureau had attempted unsuccessfully
to have his position kept at CAF-11
in a reclassification by the Civil
Service Commission. and had pro-
NOTED two field men above him to
CAF-12 positions only because they
were considered better qualified.
Denies Worth Questioned Generally.
In denying that he ever had ques-
toned the worth of civil service em-
ployes generally, Mr.. Beecher said
another employe had told him some
Of the veteran workers resented me
being put in charge of the section in
an expert status in preference to
civil service people, and made 1t
clear that the particular persons who
were expressing resentment were
rendering definitely inferior service.
Mr.. Luebben was one of these"
Senator Ellender commented that
In some cases there seemed to be
special effort to give professional
men, newcomers in the service. ad-
vantages over those who have worked
their way up" and he didn't think
this was right.
Grover A. Sheppard. a $3,300-a-
year employe in the field supervi-
sion section. charged that Mr.
Beecher had "penalized" him and
boosted other men in transferring
his work to them when he was at
tempting to have his job classified
for higher salary.
Mr.. Sheppard said he transferred
to Mr.. Beecher's section when his
position in another section was abol-
ished, and continued doing much
of the same type of work. Mr..
Beecher countered that much Of
this was made work" which Mr..
Sheppard had undertaken without
instructions, and that much of it
had been discontinued as unneces-
sary.
Declined to Approve Raise.
Mr.. Sheppard also charged dis
elimination against him because he
was not promoted to higher-paid
jobs filled by outsiders" and trans
fers from other agencies, and be-
cause Mr. CorSnn hod doc1,roa =.