Evening star., 1947-01-23
House Bank Reopens
with Plenty Of Cash;
Run Fails 10 Develop

The House bank" reopened today
after an enforced 17-day holiday as
Justice Department officials went
ahead with their investigation OF a
$l25 ,563.72 shortage in It's accounts.
The bank" is operated by the ser
geant at arms.
Several large bags of greenbacks
had been delivered late yesterday in
preparation for a possible run, but
members of Congress apparently
were in no hurry to get their money.
AS Representative Stockman, Re-
publican, of Oregon put it, There's
no point in getting excited when a
bank opens-only when it closes.
First to do business with the
cashier was Lyle Snader, secretary
to Representative Allen, Republican,
of Illinois, who wanted change for
500 bill so he could buy breakfast.
D'Alesandr0 First Customer.
| Representative D'Alesandro. DEM
ocrat, of Maryland was the first
member of Congress to ask for some
of his money. He was told he could
drew out up to rs per cent of what
he had on deposit January 6, when
the bank closed.
Mr.. DAlesandro told reporters
Indignantly that a number of checks
he had sent out had come back
when the payees were notified that
due to the shortage in the sergeant
at arms Office, we are withholding
payment"
Its embarrassing, that's what it
is" said Mr.. D'Alesandro I'VE ought
to have real bank up here.
think they ought to close this one
and open a commercial bank"
The Maryland legislator grew
even more indignant when he dis
covered, after getting on the eleva-
tor, that he had been overpaid.
Closed Due to Shortage.
The bank, where members can
leave their pay and draw checks
against it, was closed when William
F. Russell took over as sergeant at
arms. Bulk of the shortages dis
covered during a General Account
ing Office audit, occurred while
Kenneth Romney, Montana Demo-
crat, was sergeant at arms.
Mr.. Romney'S successor said to-
day he was confident there would
be no run on the bank and that
Eventually there will be no losses"
| Meanwhile Mr.. Russell made plans
| to have the books audited regularly.
"As long as I'm running the Of
fce," he told reporters, there will
be an audit of the accounts every
three months.
He said he doesn't plan to carry
any more cash on hand than is
necessary.
Pay Funds Are Deposited.
To start with, he explained, there
will be the balances members have
on hand from their pay, which they
receive monthly through the office
of the sergeant at arms. The Treas
ury Department deposits the salary
funds with that office, and members
can leave it on deposit or draw 1t
out as they desire.
Mr.. Russell will continue to cash
regular Treasury checks issued to
House employees. These checks are
issued by the House disbursing Office
and the employees usually cash them
with the Sergeant at Arms, who in
turn cashes them with local banks.
The Justice Department was max
ing q study of the official audit OF
the House bank to determine what
action, If any, should be taken. A
decision may be reached soon, 1t
was indicated early today.
Officials in charge of the audit are
Assistant Attorney General T. La
mar. Caudle, head of the criminal
division, and Assistant Attorney
General John F. Sonnet, head OF
the claims division.
s1,204, ,166 on Deposit.
The audit made by GAO experts
showed that there was 81 ,204, 1855. "a
on deposit during the last Congress,
but shortage of SIPS, 5,563.73 had
been discovered.
Three-quarters Of an hour before
the banks doors were reopened,
runners from half a dozen Wash
ington banks were lined up to get
reimbursement on stacks of checks
cashed throughout the country by
members of Congress.
The runners explained the banks