Evening star., 1898-01-12
ACCOUNTS OF PosTlIAsTERs,
Auditor Castle Has Been Pushing HIS
Investigations.

Since the discovery of the frauds in the
money order system by Auditor Castle, the
latter has been pushing an investigation
into all postmasters accounts since the
ilrst OF last July. There are in round num-
pers 1oooo,oOO money orders to examine
involving an expenditure of 500 600 600 Tn
to the present time over 800 mistakes have
been discovered, but whether they are
fraudulent can be determined only after
further investigation. Even upon the as
sumption that the mistakes discovered are
errors, the government has suffered con-
siderahiy therefrom, for in majority of
the cases it has been found the mistakes
were against the government.
All of the post office officials who are
familiar with the money order system de-
clare 1t Is not perfect, and mistakes under
1t are the rule rather than the exception
and that it should be changed And they
are satisfied the old system of audit was
improper
1t has been charged that there was no
warrant of law for the system of audit
which made the frauds possible. In the
report of the Dockery commission upon this
feature of the work the following occurs:
The distinctive feature of the form
called margin check is not unlike devices
now in use for similar and other pur-
poses, and which in this connection will
accomplish very important result that
definite check of the postmaSter's money
order accounts Immediately upon their re-
ceipt. The present system involves delay
until the orders issued have been paid re-
ceived at the department and checked
against the report of the office issuing be-
fore the debit of that office is fully de-
termined. 1t will be noticed under such a
plan, even if all orders were presented for
payment, that it would be several months
before the debt of the issuing office could
be determined; but the facts are that many
orders never have been and probably never
will be presented for payment
Tt,e
Department evidently thought the law man
datory and incorporated the dicect check
ing system as recommended above.
The following letter from Secretary Gage
to Representative Dockery explains itself:
referring to the subject matter of our
conversation today, l have to say that the
act of January %, 1894, enacted upon the
report of the 'Dockery commission does
rot limit the auditor for the Post Office
Department to the money order coupon ia
auditing post office accounts. but while re-
tanning ali the safeguards of the old sys-
tenn Of accounting in that office, simply fur
niskes the auditor this additional safeguard
to be used if he SO desires.
'The detail methods of auditing postmas-
terS' accounts of necessity must be left
largely to administrative discretion, and
are not and cannot be arbitrarily prescribed
by legislation.
with reference to the coupon form of
money order observe that the Joint COM
mission, In its report on the bill (act OF
January q, 1890, stated: 1T is proposed
that these orders shall be prepared in such
a small and neat form to give them an
attractive appearance and make them easy
to handle, and not more cumbersome to the
files, the coupon check included than is the
case with the present money order FORM
1T is, OF course, impossible entirely to
avoid errors under any system, but the
audit under the coupon system properly
made, would be amply safe and expeditions.
ITO make the safeguards relating to post
office auditing more effective the commu-
nication between the issuing office and the
auditing Office should be more frequent.
but this would involve increased expense
and an additional clerical force.
IT may add that the accounting system
Of the treasury. authorised by the act OF
July 81. 1894. commonly known as the
.Dockery act has been found to be expedi-
tiors. economical and hedged about with
good safegraI Ida"