Morningside
Success Story
A “careful review” of the federal
income tax returns of the Sanitar
ium Company, which operates Mor
ningside Hospital at Portland, to
which Alaska’s mental cases are
sent, as well as an investigation of
its president, Wayne W. Coe, has
been suggested by Joseph Camp
bell, Comptroller General of the
United States.
Campbell submitted a report on
an audit and investigation of the
Company from January I. 1936.
through December 31, 1954. to Clair
Engle of the House Interior and
Insular Affairs committee.
The General Accounting Office
audit report finds that personal ex
penses of Wayne W. Coe amounting
to $183,194 were improperly charged
to the Company's operating expen- |
ses, and further personal expenses
of Coe in the amount of $46,284
were improperly charged to the
Company’s general and administra
tive expenses.
Some of the personal expense
items charged to Company expense
were travel expenses of Mr. and
Mrs. Coe to South Africa and Mex
ico; expense of operating Company
car used exclusively by the Coe
family; premiums on Coe’s personal
life insurance policies; wages of
domestic help at the Coe residence
located ten miles from the hospi
tal; household expenses, such as
food, clothing, dry cleaning, utili
ties, and repairs at the Coe resi
dence, as well as the Coe beach
property some 100 miles from the
hospital; insurance on the Coe res
idence, the Coe beach property, and
the Coe ranch in eastern Oregon;
architect fees and construction costs
of a flower room and plant room at
the Coe residence.
The audit disclosed that $24,925
was paid domestic help and garden
ers at the Coe residence and
charged to the Company's business
expense and asset accounts. Grocer
ies, clothing, gifts, gasoline and oth
er items totalled $18,791. Payments
aggregating $36,763 were paid by
the Company of life insurance pol
icies covering Coe where the Com
pany was not a beneficiary. Travel
expenses in the same category were
$8,525.
The report stated the difficulty
in making an audit as follows:
“The extent of our examination
of financial transactions was re
stricted by the absence of cash
books and journals for the period
prior to 1946, the absence of paid
checks and bank statements prior
to 1950, absence of invoices prior
to 1955, except for invoices for pro
fessional services for 1954 and part
of the repair, maintenance, and
Presbyterian ladies Hold
Picnic At Bickels' Thursday 1
The Ladies Aid of the First Pres
byterian Church gave a picnic last
Thursday at the Bickel homestead.
The ladies and their families en
joyed a pot luck picnic lunch high
lighted by salads and hot dishes.
Coffee and ice cream were provided
by the group.
construction invoices for 1950 thru
1954.”
The report goes on to state the
“Morningside Hospital staff does
not include or has an inadequate
number of employees in several im
portant professional positions rec
ommended by authorities on mental
health. These include a phychiatric
social worker, a dietician, addition
al register nurses, and hydrother
ipists."
The report further states that it
was the conclusion of the General
Accounting Office investigations
that contract provisions between
the Interior Department and the
Sanitarium Company providing, that
a deceased patient be buried at gov
ernment expense under standards
of decency similar to those of the
U. S. Public Health Service have
not been met by the Company.
When asked to appear before the
House Interior and Insular Affairs
committee, Coe replied that he
could not see how an appearance
before the committee would serve
any useful purpose.
■V-'S.
House Revamps
FWS Structure
A bill to reorganize the present
administration of the Fish and Wild
life Service in the Department of
the Interior passed the House of
Representatives last week. The
Senate must still act on the mea
sure.
The bill would provide for a new
position of Assistant Secretary of
Fisheries and Wildlife, and create
| a U. S. Fish and Wildlife Service
! under the immediate direction of
; a commissioner. The service would
have a Bureau of Commercial Fish
eries and a Bureau of Wildlife, each
under a director.
It is hoped that this new reorgan
ization will help to solve the many
pressing problems that now con
front the fishing industry through
out the nation.
The measure would also make I
loans available to fishermen and !
extend funds for fishery research :
and marketing techniques.
The House substituted the above
; organization for a previous revamp
ing of the department outlined and
1 passed recently by the Senate.
VV. W. Tuttle, cashier at the Min
ers and Merchants Bank in Nome,
passed through Fairbanks last
Thursday en route home. Tuttle
had spent the past 10 days in the
States on business.
Welcome to Alaska!
Get Acquainted Soon at the
International Coffee Shop
Breakfast Lunch
Dinner
Terminal Building
Skyline Lounge
International Airport
Dial 4460
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Welcome... 2nd Division
Drop in soon to browse, to buy or just to talk. We
carry a complete line of records including
• Popular • Classical • Jazz
• Children's • Western • Rock 'n Roll
Musical Instruments of any kind may be ordered —
Delivery in 2 Weeks.
THE HOUSE OF MUSIC
(MARY WOODS)
OPEN SEVEN DAYS A WEEK — 10:90 AJVL to 9:00 P.M.
ALL MAIL ORDERS — $10.00 OR MORE — PREPAID
Dial 3335 502 2nd Ave.
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