|Stanley W. Finch|
The practice had a number of flaws. It was costly and inefficient. The quality and technique of a private investigator could not be controlled. Secret Service agents were primarily loyal to their full-time bosses in the U.S. Treasury Department. The inter-department renting of operatives also could be cut off at any moment through Congressional budgeting measures.
Finch reportedly argued for some time for the creation of an investigative unit within the DOJ. U.S. Attorney General Charles Bonaparte of the Theodore Roosevelt Administration was convinced to give the idea a try. He hired a group of former Secret Service men in the summer of 1908. On July 26, Bonaparte placed the group under the command of Finch.
Finch remained at the helm until 1912, when he was appointed special commissioner for the suppression of white slave traffic. His successor at the Bureau of Investigation was Alexander Bruce Bielaski, who continued as chief through the Great War and into the early stages of America's first "Red Scare."