MISUSE OF FUNDS

Evening Star, Issue 21628, 25 January 1934, Page 9

MISUSE OF FUNDS

GRAFT IN AMERICA ALLEGATIONS AGAINST OFFICIALS Press Association—By Telegraph—Copyright. WASHINGTON, January 23. Revelations of graft, nepotism, political favouritism, and other forms of corruption among minor officials of the Civil Works administration created grave concern in official circles to-day. President Roosevelt granted Mr H. L. lekes (Secretary for the Interior) “ blanket ” authority to take whatever steps were necessary' to end the scandalous manipulation of public funds. The Civil Works Administrator (Mr Hopkins), in revealing that he had already discovered the misapplication of IOO.OOOdoI, asked the Department of Justice to undertake a searching investigation, and said: “ While the Department of Justice is taking care of politicians and contractors we will clean our house ourselves with our organisation.” Several complaints have been placed in the hands of the special assistant to the Attorney-General (Mr Keenan) for the purpose of possible criminal prosecution. One of the Civil Works administration supervisors has already been arrested and charged with extorting bribes from employees. Meanwhile Representative Gifford alleged on the floor of the House that municipalities which were not in need of funds had been receiving assistance. Administration officials explained that irregularities were inevitable due to the rapid establishment of Civil Works administration without the necessary legal safeguards. Mr Green, president of the American Federation of Labour, announced that after a conference at White House, President Roosevelt promised to continue the Civil Works administration through April, and probably May. It is expected that after then the President, who is desirous of staying within the Budget, will leave the matter of further continuance to Congress.