1} - UNITED STATES GOVERNMENT I I . To DIRECTOR, FBI mm: May 31, .1956 gyms; (17-9142) (U -. I'l/ I 1 .. BLACK COLLEGE, Black Mountain, North Carolina VAM (00: Charlotte) On April 3, 1956, Mr. CECIL FATE, Chief Attorney, Veterans Administration Regional Office, Winston-Salem, N. 0., arranged a conference between himself, Mr. JAMES DRUMMOND of the Vocational and Rehabilitation Division of the Veterans Administration, and HA GARMON J. STUART. Mr. FATE advised that his office was in the procesn of conducting a Compliance Inspection of the subject college and that he felt that the information which had been developed might involve a matter of internal security and that for this reason he desired SA STUART to sit in on the conference. Mr. advised that a Summary of Compliance Survey Report was being compiled and that it would be submitted to Mr. FATE in the near future. Mr. DRUMMOND furnished no specific information . indicating subversive or disloyal activity on part of the studentu or instructors at the school. Mr. FATE advised that when the Summary Report became available he would examine it with respect to possible fraud violations and if any were apparent he would refer this information to the Charlotte Division of the RBI. On May 9,1956, Mr. mes made available a. copy 01' the Summry Compliance Survey Report, referred to above, and.c memorandum synopsis of this Survey. Mr. PATH advised that on the hnsis of the information set out in the Survey Report he felt that the facts of this case should be discussed with the united States Attorney at Ashevills, N, 0., and that he would arrange for a conference with the United States Attorney-and- requested that an Agent be present at the conference. He stated that he would make all necessary records of his office available at the proposed conference. - The Summary Compliance Survey nets out informstion indicating that false statements regarding attendance of students at subject college have been made by college officials and that the voter?ns do no attend classes in the nomad. sense. The college has been certifying that certain t; 'f 2 - Bureau a. A Charlotte . I . . :r-f?u - 5? Amuse .n .33 . it to!? 9.31% 1 ?23} Wt? .1 - .V Director, FBI May 31, 1956 BLACK MOUNTAIN COLIEGE VAN veterana have been regularly attending but keeps no record of such attendance. Veteran Administration officials have taken steps which have resulted in the school's approval by'the State Board of Education of North Carolina being withdrawn, thus cutting off auboistence or veterans. School officials have advised that they are conducting a very unusual type of school, for example, a student may do nothing all day and in the middle of-the night may decide he wants to paint or write, which he does, and he may call upon him teachers at this time for guidance. They advieod that everything is left to the deairca of the individual. The Survey Report indicates that there are 23 atudenta 'Iin the college, 9 of them are veterans. This Office will open individual canoe on each of the 9 students if the USA indicates that he contemplates provocation and requesth additional investigation. - - 2 - SAC, Charlotte (17-9H2) 1 June 8, 1956 Director, FBI (l7wNow) BLACK MOUNTAIN COLLEGE, BLACK MOUNTAIN, NORTH VAN y, . . to Rourlot 5~31~56. o$?3 .. . Individual cases on oath of tho studonts $5 inyolvod in this matter should not be opouod, but only one case regarding the school should be oponod. If prosecution relative to the students is considered by the United States Attorno you may mako appropriate additions to the title. he character of this case ohould include EPA or VRAA whichevor is applicable. Vi You should assure there is no misunderstanding in connection with the procedure of referral of thoao matters to your office by VA. The chief attorney of the VA Regional Office at Winston?Salem should refer mottors of these types directly to your office in order that appropriate preliminary inquiries may be made by your office and a discussion with tho United States Attorney may be had by your office. It is not nocossary for VA to arrange a conferonoo with the United Statos Attorney, but there is no objection to the United States Attorney inviting a VA representative to be present when you confer with the United States Attornoy_? regarding prosecution. The Bureau has solo Jurisdiction of the criminal aspocts and your office should control all action in connection with the criminal invostigation. . On the basis of irregularitios indicated by'. the VA report an investigation should be conduoted.in accordance with the Manual or Instruotions, Bootion 96, Paragraph at the top of Page h. Other instructions -in the Manual should be followed in this case. m. u'v Surop without doloytg17;? I, r/ ,Kl' t} '54 :1 . (r if?. . . - .M N, lumgu i; 1 A u/ in barman k/ Hickok?donut :n a? 3} I, .1 m. T-I- HarmHuh! . i, - Parson; Rmm. Sit" .MJH 5195b - . T616. 51-min . . I . 3.52? Hollows-1 I"e . (:3.de ~h . I 1Hwy:mqv I, . I 3. UJGVUVJ 0110(10 Una Oi} L10Equulaoju'y '10 put-1 Kammom: min, m: mum? [xx-mug 'luodeu Lluwuzrzg 01.15; LIT, peqacpcisnx {lxs?v1U1u?jQJU'l an: nun? 21%1 an ?mva 'Jm 3 QBQQ p?iuqs 1mm; 81.150311; du .im. 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W312. - - Jitma- 2&5 BLASK MOUNTAIN COLLEGE - - I . - -7:2 iz-? '7 . -2 . .Mr. HEMINGWAY stated-that this matter had . bans discussed with officials of th? College and that .sh??A complied in with the proviaions of but had indicated that thuy did nab comply.1n detail in that.their scheduling ,of'clasaes.wma on an irregular basis. Mr. HEMINGWAY a?viSed_that the Collage had been for Vete?a A?ministration Students?on a_limited basis by tha.N0rth roliha?. .ijjg?e- Department cf Education asga result of a cqnfebence. 5 ?jyf?, held an Jdnd??iVlQ?? between.officiala of the Colhag?. th? state, and the VeteranSJ. 2 - 'Admin;stvatibn;i'The approval Was limitsd to completiothy,therete ans praaen?ly gnvolledjofv V. ,~H%gwmg their counsen.f Mn. BALEYkstat?d that it was his; ppinionFthatqthis was gamntt wh1?hjcpuld any gyidamgg of intany to 55?5Q?i??b?lpf :wv?z 9 and bf ?hajiiw the?s,?rwfr 52* {ram stata? ?irT kn F205 ?b attahdan?e?naporaa being kept by 11:9 the ??hbul bat ckplal?gd that the total e?rollmenb' - 'haV?"b?ehm?p?ioed if bh?re'had been any* 'r "g7x7 treasuver of Black-.? b6 b7C . ?a?vised on Jun?g211f195?3ph$??h?ir?alizad that the day fovai ego? Qix?days?k? . ?pav week Wer? t6 b6 fdhnish?df?b the veterans . if? pdI?i?igcfatimefihk??a?if??f.u I: a "'Avgairm the . f8 It 17-119 b, -- gun? 36"19g6 w, 3? VAN 3? ,Hm Amid ha knew ghat thi? ingtyuction had not baa? giVun_on regulmv b?aln.0F five or,s per . dilS 'bl1t 531i la asst . pg? week Qf-inStr?thGnoz HQ orally pepvasgntatxveSJ '?t?thQ-O?bs?t of *h3 ?rom??m"th8t 30 h?upa bf What wgg?naquiredy?an? that I xn'?nbmitt1ng the d??al1MGht Gertific?tsb.he? him?'db?n five?or 31x. ha? r9133 ?1?favm9tinn kg 2.. . agv?ggd that h95_b?en ??ii ?nttan?mnoa 1? ??vj past? all, 5 gagiuyq I I?mLi's??ltie55b?5ta??fr?l??b?atg?n? - . . .- g?h?gf??t? d?Valcpaanh 5&9 an a?hn?indi?h?id?jtbatiTjQ . }4 a . Sausv s? A 1.1. - v? .. \1 2.4311?; . I. 2" 0.43.356 (.J K: a 3 Al?; . .291:mt? 3.12506 . -- . 03"um-ci' Rupert'i" . -. 3?55lit TEKV. 1w - FEDERAL BUREAU OF awasnemmu Officr qu Hum.?- Ut'tiwhm? urtgm - [II/Wooilgatlve ?1 7/19/50 d/g?ii ?1150?: CASE Report. Ind" 11y ,1 go typed Ev: b6 3h b7c? a mouwwlit COLLEGE, M.. a . nr, . CHARACTER OF CASE MOUNEALN, CunUthA r- VETERANS ADMINISTRATION VETERANS READJUSTMENT ASSISTANCE ggziljwm ACT or 1952 Synopsis: On 5/9/56 CECIL FATE, Chief.?ttorney, VAHO, Winston-Salem, N. furnished results of compliance survey conducted by VA under provisions of PL 550, 82nd Congress. Information developed? during surVey indicated possibility that false statements had been given to VA regarding attendance of veterans at Black ?oun~ tain College. On 6/6/36, USA JAMES H. BALEY, JR., Ville, N. C., after review of information in survey report and VA attendance requirements,advised that he felt VA Administra- tive action was best remedy, but requested limited investigation-2f before rendering an opinion regarding prosecution. Two veterans lb., furnished signed statements and one advised they ion equalling time indicated on certificate submitted to_VA, but ..3 u; not on regular basis. Treasurer, Black Mountain 'ggbe? College admitted'infOrmation furnie ed VA was indCurata butcleimedfzgi all 7 veterans in attendance received instruction equaling or oeeding clock hours reported to VA but not on a regular basig ea regorted tinA. USA BALEY on 6/21/56 advised he would decline -1 . .--. -. ft?. ?1317;275you L'jwv'?? {Linda/?31-" r? .hf:uv : 1 'l - ivif?? ?71Asp-?19} ,sfliiljhhnot into Spay" bola" .Faplof: ?5119Asheville? - - 1? Charlotte (17~9h25.1.. I :1 I: leaned {a loaned. you by {in ruzLaerm-xnm :1 mn- S?uu I i - 7 .r {:51 couquwmvin onto: 1:55 34515 Tiff; '17~9u2 .prosacution since VA abtanda?ba requiraments Hera ?and indefinite and that any effort to prove 0ould bs sucCessrully mot by the claim that substantial com445jg 'plianca was had_even though compliance was not Dara regular ~5 vba313.' . ?j4 a . This invastigatiOn was predicated updn i of furnished by GECIL BATE, Chiengv?higf Attorney, Veterans Office, Winstpanalem;.North Carolina, on May 9, 1956. 7 FATE furnishad this Office a copy of a ComplianCe.survby gbne ducted by the VeteranS'AdminiStrabibn under the rPublic?Law 550, 82nd Congress,-whioh refleCted;informationgina;?w?* dicating the possibility Of_falsa statements to the'Vetarans Administration regarding attesndanceoffvet'enans;W at Black Mountain College, - that g< *?Bl?ck Mountain College?had ?raining under the provisions of Public Law 550,;82nd160ngnagg;k gaffectiVB from June by the agency, It was indicated that the appjoppiate .di?atoaithe Ve?ara?sad? not att?nd i? the no:ma1p sens? and onl?Viegulan;basisI??Thalsurv f- indi?a?in'Vt who ?fr?miiuly.12i?l955 from_January 3,-19564 throuzh March 1% deuce $31 [which is . ?abaent theyvmad??tpgirx? .x i?if Th6 Qurjgy.indica?es that the modth i E?yt 3 ?cabea submitted in behalf df.thi? Veteran fgy?, 3f~? attendance during for ?h13. .axssizm 13"" 1 '13reqaon it is believed t?abgsomo 9f th?ue.cert1fioateS areM?AxJ erroneous; The survey iurther indicataa that no ghasncesy" vaterauniannollod at this institution have' been-reporte& on Certificates QXCe?t'dne . .v instance?duriug.wh10h bimo?the veteran waSch patient-in*a g~?i .hospmtal.' survey also indicates that bacause?0f7a'lack p_ of attendance recur mint the'inatitution it was impossible to - determine whothmriothor.absencas were-incurred and not-re? portqd., - 4 . . AT AmuvaLLm,.Non CAROLINA . yon June 6; vheld'with United_btatn? AttornQy ?Di?brict North Carolinu;.Asheville, North C?rolina. Mr; G. 5' Chief 6f EATE, h~w '~Offico} ware .FATE QXpLainqd4tqur. BALEY that :g?il had bean submitpOd .by the . haurghpef day 0Q?fiY619?%?i3 dgyaapaxgwaeka03tha . 9? Mr; in?bp?f _uu 3.3wrwf,< 7doubt as to thGiaQCuvacy and truthfulnasst?f the informatioh?furnimh?? In the twai?chmenbs(iesc?4b?d?$ above. - - 1 -. Mr. HEMINGWAY stated that this discussed with Q?ficluls of the collagu ?nd that they claim?dgj.. they had pnuvisiong of rlega, of the.stata, and the Vetaruna Adminis~,j- Mountaiu College the -Tua r?corda?PefleCt7the.f0110W1nR vaberaua;in?att?dd5n?65f?r?? Administrationon ?-199 "Th?f I on l7mgug 1.. doenmants but had indicated that ph?y did not comply ianetail??g,gsi in than their scheduling o?-classas was on'an irregular:bgais;g adVised on cumulati?n?of thd; Compliance ?urvay that the had been rerapPPOV?d?43