Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1884-08-28
REYNOLDS STATEMENT.
FALSIFYING THE ACCOUNTS TO
PLEASE HIS SUPERIOR.
The Books of Ex-Secretary of State
Burns $4,000 Short-His Dep
uty TO be Arrested.

| A-e-NN DNNA-
discovered in the books and accounts of the
| late Secretary of State, D. NJ. Burns. The
| clerks in the State Controllers office have
been working at the books and accounts
for many weeks and still have not COM
pIeted their labors. Burns left here some
weeks ago for Mexico, where he has some
| mining interests. He frequently talked
with his friends regarding the matter, and
! said if there was one cent wrong in his
accounts he was not aware of it. He said
he had not handled any of the cash that
| came in during his term of office, as that
| was a duty that had been performed en-
tirely by his first deputy, Thomas Reynolds
He desired a full and complete eXamina-
ton should be made, claiming that such
| an Investigation could not fail to clear his
skirts of any criminality or dishonesty.
Thomas H. Reynolds, who was chief
| deputy under Burns, and now is the pro-
prietol of hotel in Fresno, came to the
city a few days ago, having heard these
rumors, and was DESTROYS of
HAVING AN INTERVIEW
With the State Controller regarding the
his deputies in the Controllers office on
Monday evening. District Attorney J. T.
Carey and Assistant Acknowledgement Mar
shall were present by invitation of. the Con
troller, and Mr.. Reynolds was accompanied
by his attorney, Judge S. C. benson. Fred.
r. Danforth and George Gale a brother-in-
law of d. NJ. Burns, who were deputies
under Burns, were also present at the con-
sultation.
Danforth said that he was the recording
clerk in the office, and attended to the
filing of articles of incorporation, trade
marks, etc, and the preparation of c. o. ID.
packages. In the absence of Reynolds he
also receipted for money. Every transac-
ton he made, and every cent of money he
| received, he copied on daily journal, and
upon Reynolds return the money was
turned over to him, and he entered it into
a cash book
Mr.. Reynolds corroborated this fact, and
stated that upon the receipt of the money
he would enter it in a cash book, private
cash book of his own. From the daily
journal he would post the fee book, enter
ing every transaction and every fee appear
ing on the journal. At the end Of the
month, when about to makeup the monthly
report, Mr.. Burns would appear, and, tax
ing his pencil, would cross out the items on
Reynolds private cash book that he
DID NOT DESIRE To BE PAID OVER
TO the State. The items unchecked by
Burns would be copied by Reynolds into
the cash book of the Office, and from this
the monthly reports would be made up
Mr.. Reynolds explanation of his acqui-
| eScence to this curious mode of procedure
was that Burns was his superior that his
bread and butter depended on his position
as Deputy, and also that Burns was in
debted to him in a large amount, and he
did not wish to ieopardiZe his chance of
getting it back, although he subsequently,
stated that he and Burns were connected
in a mining enterprise. When shown re-
CeiptS signed by him, and asked why they
did not appear in the fee or cash book, Rey-
nOlds stated that Burns must have directed
him not to enter them. From his state
ment he evidently desired TO make those
present believe that Burns had stolen the
entire $4,000, and that he reynolds,
through fear of losing his position, kept on
making false entries on the books in some
instances, and in others did not make any
at all The astonishing fact was also deyel-
oped that it was customary for the attaches
at the office and others employed about the
| building TO borrow money from the fees of
the State, placing in lieu tag representing
at the end Of the month. Reynolds under
stood that it was Mr.. Burns intention to
make up the deficiency in one lump in
fact, he had often spoken to an ex-State
official in regard to the matter, and there
was an understanding between them to
| that effect. When asked for an explana-
ton in regard to money received in one
month and appearing in the cash book two
! or three months afterward, Reynolds stated
that it was caused as follows:
HIS PRIVATE CAsH-BooK
In October would show $500 received in the
safe there would only be 5000, the differ
ence represented by tags for money bor-
rowed by Burns or others. Burns would
take the private cash-book and add up suf-
| ficient items to make the 5000. This
amount would be obtained by items up to
the Dist of the month. On the 1st of No
vember Reynolds, under the direction of
| Burns, would start the cash account with
the items received between the Dist of Oc-
! tobcr and the end of the month. This
| course was kept up until Reynolds re-
| signed his position. And the money for
which he made his report in June, 1882
was received in the latter part of January
and up 10 the 10th of February, so the
money received between the 10Th of Febru-
airy and June 30th was never turned over to
| the State, for George Gale, who succeeded
| Reynolds as Deputy. made up his report
| for July with the money received that
month. The Textbook and cash-book were
made up by Reynolds personally, and all
the monthly reports Of the Office, while he
was connected with it, were made by him.
| HOW IT WAS DONE.
As an illustration of the difficulties 10
be overcome in hunting out the exact
amount Of the detalcatiOn, few examples
are given. The Secretary of State had the
selling of ballot paper. He sold over So
600 worth, and failed to account for
| 81, 515 a. He sold to Bancroft & Co. Codes
| to the amount of S3,047 -, and only ac-
I counted for 1902 80. From a statement
rendered few days ago by Bancroft & Co.,
ii appears that the payments extended over
period of two years and that the 1902 50
was the first payment. They hold receipts
! for the other seven remittances. one of
which amounted to 81 80. 1t also appears
! that during Burns term of Office fees o.
! land business amounting to 81, $50 was re
ceived, $685. paid over leaving deficiency
| of s.. 464. over 500 worth of coustitu-
| tional debates were sold, for which there
| was no accounting at all. Certified copies
were issued, for which 81 800 was received,
| but not dollar of which ever reached the
State Treasury They do not know how
much larger this amount is from the fact
that no entries of such transactions are
made in the books and the experts have
TO rely solely upon letters for their
information. Incorporation papers filed
! show deficiency of $40S4, NotarieS
commissions filed $1,000, appointments
issued to members of Boards of Agriculture
etc, $500; trade marks filed, $500; Commits
sioners of Deeds certificates, $500: sales OF
Codes $1,000. They think there is a def
cheney of several thousand dollars in the
stationary account. They have invcstiga-
ted sufficiently to ascertain the fact that
there Is deficiency of at least $4,000
! which may possibly be increased to $40, 900
1t is understood that Reynolds shoulders
all the blame upon Burns, and says that
reports were made up and entries made in
the books with instructions from the Sec
| rotary of State
Controller Dunn has sworn out warrants
for Reynolds arrest on four charges, as fol
| lows
First-That Reynolds, while acting as
Deputy Secretary Of State in November p
1881, received Sll9 as fees for land patents
from Ham J. Harrison, and that no entry
was made thereof
Second-That in the same month he re
ceived So % from c. f. Hanlon for certi
fed copies of articles of incorporation Of
mining companies and entered the same OF
the books as $40 30.
Third-That on February IS, 1892 he re