Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1885-08-30
THE STATES LOST MONEY.
REPORTIN ". r. SMITHS CASE

REPORT IN ". r. SMITHS CASE
| Resuim or the Invsstigntlon Made In th'
Auditor. once By the Special Committee o
the House.
Hon. John y. Moon, Of Albemarle
chairman of the House special commit
tee, yesterday placed in the hands o.
the Superintendent Of Public Printing
the report as to the investigation made
in the Office Of the Auditor Of Public
Accounts.
After reciting the circumstances un-
der which the committee was called into
| existence, the report says:
As shown by the testimony returned
with one Of the former reports Of the
committee, William r. Smith was clerk
in the Auditors Office from the year
1903 until this Investigation com
! menCed.
Your committee have found no re-
ceipt issued by any one else for money
paid in and not credited, nor have they
discovered any circumstances pointing
to any one else as implicated in these
Irregularities.
The usages Of the office ard the Gus
tom which prevailed Of paying IN
money there have already been dis
cpssed. These, with the fact already
alluded to that no proper accounts
were kept, will explain how these If
rcgularities came TO exist so long unde-
tected. There are some other matters,
however, that need some additional eI-
PLANTATION.
TIE SYSTEM.
Remittances were in large measure
made to the Auditors Office by check.
1t was known to the State repositories,
and in a general way to other banks in
Richmond city. that NJ one had a
right to draw the money on these
checks, but that they should 50 into
bank TO the States credit and indeed
in many cases the Auditor, to whom
they were handed for endorsement.
would endorse them "Credit the Com
monvealth Of Virginia" or make some
other such limited endorsement as
would prevent their going to the credit
Of any one other than the Common
wealth. And yet, in spite of such en-
dorsement, and in spite OF this general
knowledge on the part o( the banks.
Smith would get the money on the
checks or use them for his own benefit
in this way: In the absence Of the
first clerk, or for some other cause.
such as pressure Of business, h3 would
settle with a county treasurer. who
would pay him, say. 81, l,ooJ in currency.
lie would pocket the currency; but in-
asmuch a. the trcasurcr's account
would be balanced aui the shortage
then detected, he would take Sl,O0O OF
checks paid in by some clerk Of court
and deposit them to the creii; Of the
Commonwealth for the account Of the
county treasurer. but not for the ac-
count Of the clerk who had sent them.
Or in case the exact amount Of 3L0J0
could not be found in checks in his
possession. he would deposit checks for
some part OF the amount ,9s. say. 5000
and make up the balance in currency.
This ueryersion OF checks would not
appear on the Auditors or Treasurer's
books, W here everything vas entered AZ
cash. but could only be discovered by
reference 10 the scratchcr or deposit
tickets Of the bank in which the check
was deposited. As an illustration Of
this the clerk Of Elizabeth City county,
in December, 1853, sen. a check for
$j0j.03 on the Home >avinss Bank at
Norfolk to cover his dues. Subse-
quently the treasurer Of King and
Queen paid to smith about 500 il cur
rency on account Of the revenues of
that county. An amsunt of this cur
rency equal to the check was deducted,
and the check endorsed by the Auditor
" Credit Commonwealth of Virginia 81
substituted in It's place and deposited in
the Planters National Bank. upon de-
posit-ticket made out by Smith. along
with other funds for the credit Of said
treasurer, but no credit was given to
the clerk.
PCHIIC-WAREUoTSE CASE.
Another case il point is the rent Of
the Public warehouse. For The two
and one half wear, ending September /.
1851, Smith hal received 5>.7j0
Of such rent through the checks
Of the lessees. PAYABLE to bearer, upon
which be had Improperly collected the
morey st the end Of every three months
during the term When a settlement
was called for Of his rent he deposited
in the Planters National Bank checks
Of different clerks Of courts aggre-
catirg $S,74GIS, sui 80 which ne
ont Of his own funds IN cur
rcncy, making in Ill >..750 in fall OF /
this rent. ON tn books Of the Audit |
tor and Treasurer this deposit Of checks |
to have been ca.h-l. No. |
where bat from the sc4atcher or de- |
poslt-tickctS Of the bank coul the true /
nature of The transaction be discovered. |
by way Of explanation 10 should per- |
hals be stated tha. it va, In. habit Of |
the Auditor 10 endorse the checks re- |
ceiyed in his otlic. and hand them to |
his first or second clerk to be deposited |
to the credit Of the proper parties
THE HELD-HAgK ClICK~.
This misuse OF perUersion Of |
checks will in 4 measure account |
for so many Of them remaining in |
Smiths possession so lon. uncollccted. |
Afraid to attempt directly the collec-
ton Of money on one of them. he |
wosld hold it. awaiting some opportu-
lity Of realizing on it upon the plan
already stated until the check got so |
Did that the presentation Of it to the
bank officials, even for the credit Of the
proper party, would have attracted at
ention to his neglect. if to nothing
Use. While the failure to present il at
al would leave the money to the credit
If the party remitting, whom lie trusted.
or that reason would say nothing Of
t. or at least make no complaint. This
your committee believe.
hows motive for what would other
wise appear to be only negligence.
THE WNTHEVILLE CASE.
Attention msv be called to another