Probe of Gl Loans Asked by Murphy WASHINGTON (ffl — A congressional congressional investigation of "outrageous kickbacks and subterfuge" in connection connection with housing loans under the "GI Bill of Rights" was de- maded yesterday by an Arkansas delegation. Dr. Garland Murphy, El Dorado physician named a member of, the American Legion's National Ex- exutive Committee, headed the group, which met with the state's congressional delegation and Chairman Teague (D-Tex) o£ the House Veterans Affairs Committee. Committee. Murphy said veterans ars forced by the use of "gimmicks" to pay 6 to 10 per cent interest on home loans, despite a legal interest limit of 4V 2 per cent. "The key gimmick in thb unsavory unsavory operation is the practice of discounts on government-backed home mortgages by mortgage bankers up to 11 per cent, with discounts of 5 per cent most <.om- mon." he said. "This means the home owner has from $600 to $1,100 added to the cost of a typical $10,000 home in addition to regular interest charges." The delegation also urged that 1he Army-Navy Hospital at Hot Springs be turned over to the Veterans Veterans Administration for operation as an arthritic treatment center The Defense Department has tried twice, to close the hospital. The last attempt was halted by Sen. McClellan and Rep. Norroll, Arkansas Arkansas Democrats, who won congressional congressional approval of an order forcing the department to keep op- crating the institution, members of tjve delegation includ In addition to Murphy, other ed Truman Baker of Searcy, Dr. John Henry Pinson Jr., of El Dorado, Harry G. Miller of El Do rado, and Clivls Copc'land of Little Little Rock.