Evening star., 1947-09-08
VFW
Continued From First Page.)

an open outbreak on the convention
floor before the sessions end tomor-
row.
Among them is Representative
Van Zandt, Republican, of Pennsyl-
vania, twice q VFW National COM
mander and probably its most in
fluential member.
Another year like this last one,
he told a reporter, land we'll be
bankrupt"
Despite heated charges and
counter -charges in reports between
Mr.. Starr and other national Of
flcers, however, there has been little
hint of the internal issue to the
more than 80 news representatives
covering the convention.
In one annual report, long time
VFW Quartermaster Gen. A. B.
Handy declared that this year will
close with unpaid obligations for
which there is no cash on hand u
without going into reserve funds
for next year.
He placed blame for the first
serious financial setback in more
than 40 years" on expenditures last
year that were based on revenue ex-
pected from an increased member
Ship-which failed to materialiZe.
Mr.. Handy's report said officials
last year expected to have q men,
bership og 2,700,0O0 by this month.
Exact present figures were not avail.
able, but the report said there was
a notable" decrease from the
1,553, 900 1916 membership.
Failure to obtain even so per
cent of the revenue from member
ship dues" the report said, Caused
the entire budget structure to COL
lapse"
Stars Annual Report.
However, in his own annual re-
port Mr.. Starr said that I'VE have
failed to renew for 1947 more than
685 600 of our 1916 members"
He attributed the loses to men,
bers who left their communities
during the year Fin search of homes,
jobs and educational facilities"
Auditors statements showed that
the VFW has assets of Sits, ,908-
with about 1896, 900 in clear Gov
eminent bonds and about $534,000
in land and buildings.
To offset the assets, however, &C
cordiAg to Mr.. Handy's report, the
group is faced with liabilities to-
falling $9O2, 2,381.31. The difference,
$871 .590.25, comprises balances in
various VFW funds.
Mr.. Handy charged in the report
that warnings early in the year to
Mr.. Starr about seriousness of the
situation were ignored.
Expenses were calculated" the
report said, without regard to in
come. And then, the estimated in
come was increased to q figure a
little more than the expense, that
allowed only q 4 per cent margin
for income shrinkage."
go Per Cent of Estimate.
The actual income, 1t said, was
only so per cent of the amount
estimated.
Mr.. Stars report said that near
ly all the cash on hand was used
up in 1945 for purchase of a $3.50, 900
building in Kansas City-instead
of paying debts that existed then.
Mr.. Handy maintains his office at
the Kansas City Building.
Mr.. Starr urged sale of the build
ing and suggested that all units
Of the VFW be moved under one
roof" in Washington.
His report declared that debts
outstanding when he took ONCE
forced the sale of about $700, 900
worth OF Government bonds held
by the group.
The National Commander also
said a large percentage of his funds
was eaten up by two monthly VFW
publications. magazine called
Foreign Service" and q tabloid
newspaper, the "VFW National
News" Mr.. Starr recommended
that the magazine be eliminated