Evening star. [volume] (Washington, D.C.) 1854-1972, 1881-11-02
The Deficit In the Tax Collectors

The Deficit i" offsce. ths Tax Collectors
| SOME UNFoUNDED REPORTS ABOUT THE CASE
| WHAT Is SAID AT THE COLUMBIAN BUILDING
| REPORT OF AUDITOR vINsoN ON THE CASE.
| The announcement made In yesterdays STAR OF
| the discovery OF a discrepancy of between COO
and S. 900 in the audit of District Collector Cook IS
| accounts, and that the unaccounted deficit had
been traced directly to the door of his cashier Mr.
| SilaS Merchant, has created surprise and caused
many expressions OF regret by various citizens,
owing to the good standing OF Mr.. NJ in this COM
munity, where he has been well-knOwn for many
years. The announcement has had the effect,
as Is usual in such cases, to cause the circulation
OF many unfounded Pumors The work of inaugu-
rating an audit of the several accounts of officers
who have had charge of revenues was put into
force some two years since with the view of
simply settling accounts between these Offices and
the District, and not as rumor has it. OF discov-
| cries OF any wrong doing, or even suspicion of
wrong, and the discovery OF this deficiency is an
incident OF this audit, just as the discovery of
the late Water Register Lubey, and for which a
suit Is now pending in the District courts against
! his bOndsmen.
| HOW FAR Mr.. MERCHANTS ADMISSIONS WENT
The published statement that all the clerks In
the collectors Office have been entrusted with the
| receiving and handling of money is incorrect, as
| no one but the cashier, or, in his absence, Mr.
Cook, has ever been entrusted with this duty. An
other statement, that Mr.. Merchant had confessed
to distractions of mOney-is not strictly i'm accord
ance with the facts. When made acquainted With
| say, Mr. Merchants reply was that he had handled
All the funds, and II any errors had been discov-
| In none OF the details Oi these discrepancies or
! specifically would he admit his fault.
WHY THE ACCOUNTS HAvB NOT BEEN AUDITED
BEFORE.
The question is now frequently put, ''why has
there not been any audit OF these accounts before?
Commissioners hat 10
has never been provided by Congress to enable
them to carry on the labor, and .1nce the US.
Treasury department has assumed exclusive con-
troll OF the District finances, it properly the
duty ofthat department to audit the account.
THE DISTRICT GOVERNMENT NOT LOSER.
In this case the District is not the loser of one
cent, as the amount has already been made good
by Collector Cook, who is really the responsible
man, and it is not probable that Mr. Cook himself
Will be a loser, as he thinks hS has been amply
secured by the transfer by Mr.. Merchant to him
or his property, which is somewhat encountered,
yet there will be enough, he thinks, to save him
from loss.
THE MANNER OF OPERATION BY MERCHANT,
1t appears, has been to take advantage OF the mis-
takes OF Others AS, for instance, Merchants
duty was to receive all taxes from the taxpayers,
count the money, place it in the drawer and keep
separate amounts each tax received; the tax-bill
is next handed over to an entry clerk, always on
amount % Of tax T recorded Whenhe b IS psssed Ito to
the collector for receipt and then passed to the
taxpayer. 1t Is supposed that these accounts be-
tween the cashier and entry clerk should always
tally; but in the footlngs up, during the hurry of
business and the pressure OF crowds OF taxpayers,
would occur. When such errors were discovered
by MIR. NJ, it is thought, they were permitted to
pass without correction when in his favor, and
settlements were made in accordance with the
entry clerks fOOtingS ErrOrS against the cashier
were. OF course, corrected as he discovered them.
The uniform good reputation OF Mr.. NJ, his re-
children, all conspire to cause regret at the dis
covery, and none have regretted more than the
these transactions. Mr.. M. is engaged In going
over some of the books in Mr. DonOvan's room to-
audit.
Ensures were also discovered in the entry clerks
footingS, through which means he WAS enabled to
withhold sums without detection.
THE FOLLOWING REPORT
has been made by the auditor and controller Of the
District, John T. VinsOn, to the District Commits
| soners, dated October q, 1881:
81 have the honor to transmit herewith the re-
| has been engaged In the examination of the
counts OF John F. Cook, collector District OF Co
lumbia, from July 20, 1874, the date of his ap-
| 1881, together with abstracts and statements of
account, showing a balance of 1904 due the
District OF Columbia Of moneys collected by him
during said time and unaccounted for OF this
amount the sum OF $5,24.36 is acknowl-
edged by the e.. Collector to be correct, the re,
with the same degree of accuracy, on account
| of the imperfect manner in which the permit ac-
the investigation is believed to be as accurate as
| can be aScertained from data now Obtanable. The
discrepancy In the amount collected by the cOllec-
tor of the District and that deposited by him dur
ing said time, has arisen entirely from the failure
OF the cashier in the collectors Office to report to
the collector the difference between his the cash.
ler) actual cash collections as he knew them to
be, and the footings of the entry clerk of the
amounts collected, at the time the discrepancies
AN ABSURD CANARD.
The Washington correspondence Of the New
York Herald of to-day has paragraph in relation
to the deficiency of $1,000 in the accounts Of the
cashier of the collectors Office in which it is said
i s of Ths
Il to 3 sssm ez IF
ratons, street railway companies and other influential
and even openly eSade the tax
law The slight alleged deficiency Is supposed to be
f the is chs
IS co. oo6" 10 'A'D ~ 10 '''"''A s4''''' anu
The attention OF the District Commissioners was
called to this statement to-day, and they pro-
nOunced 1t an outrageous libel without particle Of
foundation. The taxes were never so closely COL
ected as now, they say, as shown by the compare
tive statemnnts Of different years. The railroad
companies are paying all their general taxes
Commissioners having sued the companies for the
dues In the case OF the $ 900 unaccounted for, in
seven years, there is no deficiency in the District
treasury. The District, as above stated, does not
lose cent. The Commissioners acted at once
on the auditors report (printed above,) sus-
pended pen the cashier, required him to make good
instead Of covering the thing up as is SO often
done, they made a prompt and explicit public
| statement OF the whole matter The statement
that they know Of shortage OF s40O 600 $500 OOO
or OF single dollar beyond the small amount
mad! made good by the collector, has not a word of
District Government A ffairs.
The Commissioners have appointed Mr. Jacob F.
Staub inspector OF flour for Georgetown.
| CLAIM RULED. OUT.
| The commissioners have declined to consider the