Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-04-13
PHILIPPINE POSTAL SERVICE
RECENT ALLEGATIONS REGARDED
AS ERoUNDLEss.
Attention Called to the Report Of
Major MilIs-Statement by Ex-
Director General Vaiiie.

Raqard;np inttmations that Irregularities
have been committed in the Philippine pos
tai service Postmaster General Smith SAID
TODAY that the further he had investigated
the allegations the more convinced he was
that they are groundless. The POSTMASTER
General has called attention to a report
from Post Office Inspector Erwin, whom
he sent to Manila to make thorough IN
yestigation of the work. and who reported
81 find that the AFFAIRS Of the department
are in the most satisfactory condition. par
ticularly as regards finances He also
cited the report of Major Mills. the acting
inspector general, U. S. A., stating that
the accounts were in excellent condition
can error of IL cents is noted on the ex-
pense account" he says, but this arose
through errors in reducing Mexican to
American valuations"
Major Mills, report, which is dated Ma
Mia August 8, 1900 follows:
Il have the honor to submit the follow
ing report of an inspection of the disburse-
mt.nts and money accountability of the d1-
rector of posts, Philippine Islands, made
in accordance with letter from your office
dated July IA. 1900.
on the incloSed form ! made this eXam1-
nation for the period from May l, 1889
when the responsibility OF the director OF
posts began, to June 30, 1900, the close OF
outlying stations, is so slow that reports
from stations are lacking.
ITO have included in this inspection the
operations from July 1 to date OF begin
ming the inspection would have involved
data which could not have been properly
checked for a long period, since the state
ments, of stamps and stamp STOCK IN the
hands of the postmasters can only De
checked by their returns.
az find the accounts in excellent cond1-
ton An error Of u cents is noted on the
expense account This arose through er-
rors in reducing Mexican to American val
uations.
1.-The salary account shows no cases Of
unwarranted salary and the expense &C
count shows careful attention TO govern
mental interests. The question of post
Office building for Manila VIII soon REQUIRE
attention The rent of the building now
used has increased from $6ol65, Mexican
to $780, gold, per month.
'1The director Of posts may well be proud
Of the showing of his department.
Mr.. VaiIle's Statement.
r. w. VaiIle formerly director general OF
posts in the Philippines, and who resigned
a few weeks ago to re-enter the railway
nail service as an assistant superlntend-
emit, was called to Washington from Phiia-
delphia yesterday by the postmaster gen
erai to give his Views on statement con-
tanned in the report from Auditor Lawshe,
d,
tai service were very unsatisfactory" Mr..
Vaille established the service In the Philip
pines. He had interviews with postmaster
General Smith, the second assistant post
master general and Colonel Edwards of
the insular division Of the War Depart
ment and explained the methods OF &C
counting In the islands and the operations
generally during his administration. Under
his system, he explained, the post office rev.
enues were collected and held by the pos
tai service and the expenses paid from the
revenues the balance being transmitted to
the insular4 treasury. Last October or No
yember in order to make uniform the ac-
counting methods Of the various branches
of the government. service. tine Phiiippfne
commission directed that all the gross pos
tai revenues be turned into the insular
treasury and the expenses paid by check
or warrants from the treasury. Mr.. Vaille
pointed out Inconvenience In this system,
among others added risk incurred in car
rying moneys back and forth over danger
Gus highways in the Islands. and the COM
mission modified the directions so as to
permit the withholding of all money to pay
the necessary expenses. Meantime Mr..
Lawshe had been appointed auditor with
instructions to continue the postal account
ing system which, MIR. Vaille had instituted.
Mr.. Vaille said that possible confusion
arising from the change In accounting sys-
TENS in the interregnum between the be-
ginning of the War Department system and
the arrival of Mr. Lawshe might have led
to Mr.. Lawshe's statement. This. he said.
was the basis unless something recent had
been developed of which he knew nothing.
The details of the various systems of &C
counting Were explained in detail at both
the Post Office and War Departments.