It is desired that I especially call your attention to the fact that a war charities bill enacted in 1916 by the British Parliament has successfully stopped war charity evils in England similar to those now existing in the United States. An investigation by the district attorney of New York County has developed the fact that war charity grafters, driven from England by this parliamentary act, have continued their nefarious practice in the United States. It is my opinion that State or municipal legislation would fail to meet the situation, and that the problem can be made only by a Federal law, such as that now before your committee. I desire also to point out that the need for the bill will be as great after the war as it is now, with the armies in the field. Following peace, war charities will continue and multiply for many years, soliciting public contributions for the welfare of returned soldiers, of their families and dependents, for the relatives of those who died for their country and for various other phases suggesting themselves for welfare work after the war. It has been established by grand jury investigations that, up to June last, war charity swindlers grafted $4,000,000 in the city of New York alone. These millions were collected from the public for our soldiers and sailors, and for the war stricken women and children in the name of the flag. For this reason, if for no other, we believe and feel that the bill should meet with the approval of your committee and be enacted by Congress. Yours very truly, FRANK W. SMITH, Chairman. DEPARTMENT OF THE INTERIOR, DEAR SENATOR: I am in receipt by reference from your committee, of S. 4972, a bill to regulate the collection and expenditure of money other than by the Government for the benefit of the military forces of the United States and its allies. Inasmuch as the measure proposes to intrust the administration of the act to the Department of Justice, I do not believe that I should make a report thereon, but suggest that if you have not already done so, same be referred to the Attorney General. I may say generally, that in my opinion it might be advisable to have some measure of regulation and control over organizations and individuals who voluntarily engage in the business of collecting money and other things from the public for the alleged benefit of the military forces of the United States and allied nations. Cordially yours, Hon. GEORGE E. CHAMBERLAIN, Chairman Military Affairs, United States Senate. FRANKLIN K. LANE, Secretary. THREE COMMUNICATIONS SETTING FORTH THAT THE AMERICAN RED CROSS POLICY IS NEITHER TO FAVOR OR OPPOSE LEGISLATION OF ANY KIND, AND THAT THIS IS THE POLICY ON UNITED STATES BILL 4972. THE AMERICAN RED CROSS, Washington, D. C., November 29, 1918. Mr. WILLIAM BULLOCK, American Victory Union, 150 Nassau Street, New York City. DEAR MR. BULLOCK: Your letter of November 25, 1918, to the secretary of the American Red Cross, has been handed me for attention. It has not been the policy of the Red Cross either to favor or oppose legislation of any kind. As a quasi governmental agency we have felt that it would not be proper for us to take any definite position in respect of acts coming before Congress for consideration. I trust that you will understand our position and appreciate same. Yours, very truly, RALPH VOE, Legal Adviser. Mr. HENRY P. DAVISON, DECEMBER 13, 1918. Chairman Red Cross Council, The American Red Cross, Washington, D. C. DEAR SIR: I inclose herewith copy of United States Senate bill No. 4972. which would place all private organizations engaged in war welfare work under Federal supervision. The bill originated with the American Victory Union. I also inclose copy of communication sent by me on November 25 last to the secretary of the American Red Cross, and also copy of reply sent to me under date of November 28. Without contesting the opinion of your legal adviser in any way, I believe the American Red Cross should stand first of all war welfare organizations in making known its position regarding this bill. May I not therefore respectively request that you give the matter your consideration? Very truly, Director General. Mr. WILLIAM BULLOCK, Director General Victory Union, THE AMERICAN RED CROSS, Washington, D. C., December 23, 1918. 150 Nassau Street, New York City. DEAR MR. BULLOCK: Your letter of the 13th of December, addressed to Mr. Davison, chairman of the Red Cross War Council, was not received until after Mr. Davison's departure for Europe on Red Cross work. We regret exceedingly that we are constrained to adhere to the policy which has been estab lished for the Red Cross that we should not undertake either to support or oppose any pending legislation. The Red Cross is a quasi-governmental institution, and as it is one of the governmental agencies, it does not seem consistent for it to attempt to usurp any of the functions of the legislative department of the Government. We do appreciate, however, your bringing the matter to our attention. Yours, very truly, Mr. WILLIAM BULLOCK, JOSEPH R. HANLEN, Assistant to the Acting Chairman. THE AMERICAN RED Cross, NATIONAL HEADQUARTERS, Washington, D. C., December 28, 1918. Director General American Victory Union, 150 Nassau Street, New York, N. Y. DEAR SIR: I have your letter of November 23, which has been sent to the secretary of the New York State headquarters, West Side branch, American Red Cross, in which you request indorsement by the Red Cross of Senate bill No. 4972, which is directed to the proper safeguarding of funds contributed by the American people to the various relief roganizations. The American Red Cross is a quasi-governmental agency, holding its charter direct from Congress, and because of this fact, it is not proper for us to advocate the passage of any special legislation which is pending before Congress. The fact that our expenditures are audited by the War Department and that we render an annual report of our work to Congress will assure you that we are observing the very precautions sought to be obtained by the Senate bill No. 4972. Aside from the audit of our accounts made by the War Department and the annual report of activities given to Congress, the War Council of the American Red Cross from time to time publishes statements of our receipts and disbursements and an itemized list of the activities supported by these expenditures, thereby assuring to the American public a proper detailed report of the use of the funds contributed to our organization. Yours, very truly, G. E. Scort, Assistant General Manager. [Editorial favoring United States Senate Bill 4792, printed in the New York Herald, Oct. 12, 1918.] District Attorney Swann's investigations revealed that more than four million dollars contributed by patriotic citizens in New York city to private war organizations had been misappropriated or diverted to the enrichment of private individuals instead of going for the war-welfare work for which the money was solicited. Since then and the resulting activity of the grand jury many organizations have been obliged to discontinue on account of irregularities and the convictions obtained. The district attorney now advocates the passage of an ordinance by the board of aldermen bringing the "war charities" in this city under municipal control. This, however, would be local in effect and would not reach even the collections in the State outside this city. Assistant District Attorney Edwin P. Kiroe, who was the official directly in charge of the investigation which revealed the wholesale fraud and swindling, is convinced that the only proper way of controlling the evil is for Congress to enact a law "with teeth in it" which will land these meanest of all swindlers in jail for long terms. Such is the purpose of a bill introduced by Senator Ashurst, of Arizona, and referred to the Committee on Military Affairs. The bill originated with the American Victory Union and was framed by William Bullock, the director general of that organization, after interviews in Washington with representatives of the administration. It would put an end to the collection of money by selfconstituted collecting agencies with patriotic titles and bring all the war charities throughout the country under Government control. "It is a consummation devoutly to be wished." [Editorial favoring United States Senate Bill 4792, printed in the New York Herald, Oct. 24, 1918.] In a letter to Senator Chamberlain, chairman of the Senate Committee on Military Affairs, the passage of the Ashurst bill now before the committee is strongly urged by Frank W. Smith, chairman of the War Committee of the New York Chapter, Knights of Columbus. Enactinent of this measure would place all war charities throughout the United States under Federal supervision. The irregularities and scandals in connection with collection of funds by new, transient, and irresponsible persons has been exposed through the investigations of the grand jury, District Attorney Swann and other officials, indicating that the collections in this city alone amounted to millions of dollars for which there was no accounting. Mr. Smith expresses his belief that the need of the proposed legislation is pressing to restore public confidence in worthy and deserving charities, the contributions to which have been decreasing as a result of the scandals. The reputable organizations engaged in welfare work in the battle areas of Europe and Asia are a unit in pressing for the passage of this bill, which was introduced by Senator Henry F. Ashurst, of Arizona. Apparently there is no honest opposition and the measure should at once be passed. [Editorial favoring United States Senate bill 4792, printed in the New York American, Oct. 11, 1918.] THE SENATE SHOULD STAMP OUT THE WAR CHARITIES FRAUD NOW. All over the country unofficial and irresponsible persons and organizations are collecting money for the alleged benefit of sailors and soldiers, or for some alleged charitable use in Belgium or France or Serbia, or anywhere else where there is suffering to excite public sentiment. A bill has been introduced in Congress providing for the control and drastic regulation of these unofficial charity mongers. We think the bill should be enacted with all possible speed. The fact is that a very large per cent of these organizations engaged in soliciting money for war charities are mean frauds. The men running them manage to let the greater part of the money collected from a patriotic public stick to their own fingers. The evidence of crookedness and graft in such organizations has been very clearly brought to light by the investigation of some 300 of these so-called "war charities" conducted here in New York under the direction of District Attorney Swann. District Attorney Swann found by his investigation that upward of $4,000,000 contributed by patriotic citizens in New York City to private war organizations has been misappropriated or diverted to the enrichment of private individuals instead of going for the war welfare work for which the maney was solicited. In the case of the American Defense Society, one of the foremost of the private patriotic organizations operating throughout the country, and of which former President Theodore Roosevelt is honorary president, commissions reaching 75 per cent of the total collected were paid out to solicitors, leaving only 25 per cent for the patriotic purposes for which the money was requested and received. 66 Within the last 17 months, or since the entry of the United States into the war, the number of these privately controlled collecting organizations, commonly known as war charities," has greatly increased. Not only have they grown more numerous with each month of the war, but they have operated and are continuing their activities without control or supervision by Federal, State, or city authorities. They have collected thus far sums estimated to exceed $100,000,000, exclusive of the sums rightly received by the Red Cross, the Knights of Columbus, the Young Men's Christian Association, the Salvation Army, the National Catholic War Council, the Jewish Welfare Board, the American Library Association, and the Young Women's Christian Association. Furthermore, with our growing part in the war, the moneys pouring in on these private societies increase from day to day. As the result of the investigation by the district attorney many of the private war collecting agencies were forced to discontinue on account of irregularities or diversion of funds. Among these were the following: The Army and Navy Bazaar. The American Ambulance in Italy. The American Ambulance in Russia. The National Woman's Army. The Cripples' Welfare Society. Good Samaritan Circle of the Fatherless Children of France. League of Loyal Americans. Italian Bazaar in the Grand Central Palace. American Convalescent Home Association. The Penny-a-Week Fund. The Godfathers' League of Our Allies. The American Ambulance in Russian showed on its books collections of approximately $250,000. It was testified that only about $60,000 went to the object for which the money was contributed. Evidence was submitted that fur coats and silk stockings had been purchased for members of the organization with the money received from patriotic citizens and firms. Among expense items appearing on the books of the Russian Ambulance were the following: Advertising for a lost watch. $1.20 On the same day to a man who claimed he got $5 for finding the watch 5.30 6.00 Strange explanations of these items were offered. The silk stockings, for example, it was stated, were bought for the papier maché legs of girl dummies exhibited at Coney Island. Young men were charged 10 cents a throw for trying to "ring" them with a small hoop; the man who succeeded was entitled to the stockings. Evelyn" testified that she furnished clothes for the girls to be worn at the booths. The sum of $60,000 was realized from an Italian bazaar held in New York City for the benefit of the Italian families left destitute by their heads becoming Italian soldiers. Of this amount $47,000 was spent in expenses and only $13,000 went to the sufferers. The League of Loyal Americans collected money with the object of promoting patriotism among the young men of the country. On the letterhead of the league were the names of Major-General Leonard Wood, Elihu Root, Robert Bacon, and Cornelius Vanderbilt. Milo Bogard, in the position of executive director, was collecting money for the league. According to record, Bogard was sentenced in 1880 to three years in the Chester penitentiary, Illinois, for larceny. When confronted with the picture No. 13,788 in the rogue's gallery at police headquarters, Bogard admitted that it strangely resembled him and stopped his connection with the league. 66 For several months young girls went about the streets of New York and in street cars and subway trains collecting money in toy savings banks for "The Cripples' Welfare Society," another of the mushroom war charities." It was brought out on investigation that they received 50 per cent of the money they brought in. Assistant District Attorney Edwin P. Kilroe was the official directly in charge of the "war charities" investigation in New York. He says: "I proved that certain of the war charity' collectors received checks as high as $1,000 each and cashed them in saloons and put the entire amount in their pockets. I am convinced the only proper means of controlling the 'war charity' fraud game is for Congress to enact a law with teeth in it, which will make these meanest of swindlers land in jail for long terms. It must not be forgotten that their stock in trade is pretense of patriotism, by which they extract money from real patriots for their own profit." Not only have numbers of these irresponsible organizations been used as instruments of graft, but another evil has developed. Other organizations which have not been charged with financial crookedness have fallen into the control of designing politicians, who have abused the confidence put in them by thousands of good and patriotic people, and have turned what was meant to be useful and unselfish organizations for the public good into mere instruments to forward selfish personal ambitions or to gratify equally selfish and personal dislikes and grudges. The National Security League is an example of the manner in which an organization composed of thousands of patriotic and well-meaning men and women has been converted into a political and person machine by such astute politicians and corporation lawyers as Alton B. Parker and Elihu Root. It is too bad that the men and women who have so patriotically joined the National Security League and contributed money in the fond belief that they were helping along the war should have thus been duped into becoming the unconscious tools of selfish and unscrupulous politicians. All the instances which we have cited, both of financial fraud and of political trickery in these so-called “war organizations," make it imperative that every one of them should be immediately brought under the control of the Department of Justice. The thief who steals under any guise from funds which American men and women have contributed for the benefit of their soldier and sailor lads or to relieve the terrible suffering in stricken Europe ought to deem himself lucky if he only goes to jail. So, too, it is an outrage that the patriotic and charitable impulses of tens of thousands of good American men and women should be manipulated to the advantage of astute and crafty politicians and servants of privilege. Let us have an end of this sort of thing. We urge the Congress to pass the bill. [Editorial favoring United States Senate bill 4792, printed in the New York Telegram, Nov. 15, 1918.] FINE BUT BELATED. William Bullock, director general of the American Victory Union, No. 150 Nassau street, New York city, in a statement just issued says that war charity grafters driven from England by a war charity bill enacted by the British Parliament two years ago came to this country and under pretense of patriotism have been collecting sums amounting to millions from the public and diverting them to their own pockets. |