Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1898-01-13
ACCOUNTS OF POsTMAsTERs.
Auditor Castle Has Been Pushing
His Investigations.
(Wa shlngton Star-l2thO

washington Star-l2th)
Since the discovery Of the frauds in
the money-order system by Auditor Cas-
tie. the latter has been pushing an in
vestigation into all postmasters' accounts
since the first of last July. There are in
round numbers 100000 money-orders to
examine. involving an expenditure Of
500 000,coO Up TO the present time over
500 mistakes have been discovered, but
whether they are fraudulent can be de-
termlned only after further investigation
Even upon the assumption that the mis-
takes discovered are errors the govern
ment has suffered considerably therefrOm
for I'm a majority OF the cases it has
been found the mistakes were against the
government.
All of the post-ofiice officials who are
familiar with the money-order system de-
clare II is not perfect and mistakes under
it 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 de-
vices now in use for similar and other
purposes, and which in this connection
will accomplish a very important result
that is, it will enable the Auditor to
make a definite check of the postmasters
money order accounts Immediately upon
their receipt. The present system in
wolves delay until the orders issued have
s.f.fI
and checked against the report OF the Of
fec issuing before the debit Of that office
is fully determined. 1t will be noticed,
under such plan, even If all orders were
presented for payment, that 1t would be
several months before the debt of the is
suing office could be determined; but the
facts are that many orders never have
been and probably never will be presented
for payment"
The former Auditor for the Post-Office
Department evidently thought the law
and Incorporated the direct
checking system as recommended above
The following letter from Secretary
Gage to Representative Dockery, OK
plains itself:
Referring to the subject matter of our
conversation to-day, l have to say
that the act of January q, 1894, enacted |
upon the report of the DOckery Com |
MISSION does not limit the Auditor for /
the Post-Ofiice Department TO the money |
order coupon in auditing post-office ac- |
counts, but while retaining all the safe !
guards Of the old system Of accounting |
In that Office simply furnishes the Audi
tor this additional safeguard, to be used |
# he so desires.
THE detail methods Of auditing post
masters accounts of necessity must be
eft largely to administrative discretion
md are not ana cannot be, arbitrarily
prescribed by legislation
with reference 70 the coupon form OF
l observe that the joint
In its report on the bill (act
# January q. 1S9D, stated: 1t is pro-
POSED that these orders shall be prepared
n such a small and neat form as TO
i've them an attractive appearance and
make them easy TO handle, and not more
10 the files, the coupon
heck included. than is the case with
he present mOney-order form
1T is. of course impossible entirely TO
void errors under any system. but the
udit under the coupon system properly
made, would be amply safe and expedi-
ious.
"ro make the safeguards relating to
st-office auditing more effective the
between the issuing Office
nd the auditing Office should be more
but this would involve in
reased expense and an additional cleri-
al force.
Il may add that the accounting sys-
I'm Of the Treasury, authorized by the
CT of July 81, 1891 commonly known as
he 'Dockefy act has been found to be
xpeditious, economical and hedged about
=. T..