St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-02-25
THE HYDE DEFALCATNN.
Official Investigation Under Direction Of
the Territorial Examiner.
THE SHORTAGE 3,47e.4s.
This Will Be Reduced by Property
Turned Over. to About $4,000 by
MIR. James.

Special Letter to the Globe. p.
HIGHMORE, Feb. "A. = The deputy
special examiner, A. c. McAllister, of
Aberdeen, and his assistant, Simon
FritZsOn, member of the board of COM
missiOners of Hyde county, have just
concluded their work of examination of
the Homer James treasury deficiency.
When Mr.. McAllister first started in on
his work he began with the books Of the
county treasurer, OF rather of the three
treasurers enjoyed by the county under
its double organization, each organiza-
ton having treasurer that finally re-
solved unde compromise into Joint
treasurer at the dissolution of the
dOuble-header, and the combina-
ton of single board of county
commissioners. in the appoint
ment OF John F. GOudy as treasurer.
But the queer manner of making entries
and of the keeping of the books gener-
ally by the three treaSurerS, were be-
yond the depth of the expert and his
assistant; so taking the amount of cash
turned over to Homer James Nov. 26,
1884. by Mr.. Cloudy, they commenced
their investigation with the new books
of Mr.. James, and under a system care
fully went through the full set, their
sitting lasting over three weeks. The
incomplete method in bookkeeping of
the eX-treasurer compelled slow ad-
vance. Omissions were numerous on
both debit and credit sides, irregulari-
ties easily committed by all incompetent
accountant were discovered, and all
through were the undoubted signs of
-: TOTAL INCOMPETENCY.
The errors resulted in increasing the
amount of the deficiency found by the
committee appointed by the board of
commissioners, nearly 81, 900, and if GER
tain receipts not accounted for only by
declarations of their existence are not
produced, the amount will be increased
about 5000 more. A proceeding to re-
cover the amount of the deficiency will
include the treaSurer'S commission for
his three years of service and besides2O
per cent of the amount of the deficit.
L his will aggregate $4,000. However, the
actual sum defaulted, by the report
of the special examiner, Mr.. McAllister.
is S12. S76.43, to which will be added, in
all probability, the 5000 already men
toned. This sum is against the ST. 600
found short by the commissioners com
mittee, as reported to you some time
since. Mr.. McAllster did not subpoena
any witnesses, because he had no in
formation that any one knew how the
shortage was made or where any of it
is. This part OF the subject is blind, all
being cOnjectures and nothing positive
asserted as to the correct avenues Of the
escape OF the money.
Mr.. MeAlliSteF found the balances of
the report OF the treasurer taken from
the books to be previously erroneous
by mistakes and omissions, as his re-
port shows by a comparison with the
oil
report of the commissioners committee.
With this shortage in Hyde county's
funds, the county cannot lose more than
$4,000 if Mr.. James should not pay back
any of it. The about $4,000 worth of
property he turned over to save his
bOndSmen and to reduce the sum of the
defalcation will cut down the finding
OF the eSpecialt examiner to balance
OF about $4,000.
Your correspondent quotes from the
report filed by Mr.. McAllister as fol-
lows:
I'LL Acting under the instructions and
aminer of First district, I have made a
thorough examination of the books,
vouchers and accounts of Homer James,
former treasurer OF this county, from
the time he came into possession of the
office OF the county treasurer, viz, the
Goth day of November, 1884, until he
gave up said Office, viz, on the 24th day
OF January, 1888.
''After correcting the errors In the
ledgerS of 1884, 1885 and 1886, both
debtor and credit, 1 carried all the bal
anceS from the above named ledgers to
the ledger of 1887, and the balances in
the ledger of 1887 correctly represent
the amount due each fund, and also the
amount of each account Overdrawn."
Here Mi. McAlliSter refers to- Lex