The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1902-11-27
FINAL REPORT BY
THE GRAND JURY
Criticism of the Audit Office and Advice to
Senate to Take Up Investigation of
Treasurer Wright's Escape.

The grand jury made a final report
to Judge De Bolt yesterday of the re-
suits of its three weeks investigation
of Territorial affairs The report dealt
with a number of interesting subjects,
chief of which were of course, the in
vestigation into department bureaus.
The report is rather peculiar, in that
though it mentions number of alleged
offenses or Irregularities, there is an
entire omission of specific reference to
the alleged guilty parties.
The system of auditing is criticised,
as is the method in vogue in the Public
Works Department, while suggestions
are made to the Senate to investigate
further into the escape of Treasurer
Wright.
Criticism is made also of the publica-
ton of newspaper reports of the grand
jury proceedings.
The report in full is as follows:
Honorable John T. De Bolt, First Judge
Circuit Court First Judicial Circuit.
THE Grand Jury duly empanelled and
sworn and charged before you on the
third day of November, 1902, having
ended its duties, beg to submit the fol-
lowing general report:
THE Deputy Attorney General has
brought to the attention of the Grand
Jury 81 cases, all of which have been
carefully considered and in SO cases
true bills of indictment have been found
and in the remaining thirteen cases
no bills have been returned, the evil
dence presented not being considered
sufficient to warrant conviction on the
respective charges preferred.
The Grand Jury, under the general
Instructions contained in your charge,
has felt constrained to investigate the
following matters and to submit it's re-
port on the same:
Treasury Department.: 1t has in
vestigated the alleged embeZzlement in
the Treasury Department and true
bill has been found against the Treas
urer. In this connection the Grand
Jury would call attention to the fact
that the Chinese fund from which the
money was distracted had been with
drawn from deposit in bank and
under bonds and without sufficient
guarantee for its safe keeping.
I'm the matter of the escape of the
Treasurer, all available evidence has
been obtained, and it appears to the
not taken TO provide against the escape
of William H. Wright after he had adj
mitted a deficit in the funds under his
charge. However the action of the
government appears to have been
prompted by the desire to recover to
the Treasury the amount in default
rather than any wish to protect the
delinquent official. This Grand Jury
recommends that the Senate, now in
session, Immediately make a thorough
Investigation as to the responsibility of
any government official in allowing the
escape of the Treasurer
Public Works Department: In the
investigation of this department, the
Grand Jury have returned true bills
against the Superintendent of Public
Works and the chief clerk. a proper
system of checking accounts and au-
diting of the same and the regular
transfer of the cash to the treasury
according to law should have prevented
irregularities in this department.
Investigation indicates that great
latitude has been taken in the awards
for tenders on advertised bids, and that
the law has not been strictly followed
in such matters.
Auditors Department.: The Grand
Jury has examined very thoroughly the
system and practices of this department
and finds much to criticize.
The books of the different bureaux
have been audited infrequently and in
the case of public accounts cash has
not been counted to verify the balances
reported on hand. Cash has not been
turned into the treasury at the stated
periods required by law. Evidence
shows that the auditor has during the
present year absented himself from his
office an undue proportion of business
hours to the detriment of the public
service. There seems no system for re-
porting to the auditors department
either sales, transfers or exchanges of
land by reason of which moneys are due
to the government, and that statements
are not furnished the auditor of such
transactions, whereby he may be able
to verify collections due the govern
ment. The registrar of conveyances
should make statements at least once
a month to the auditor. of all sales and
transfers of government lands that may
be entered for record, so that a check
may be had on all departments that
have it in their power to dispose of
public lands, and all such departments
should make a statement to the auditor.
at least once a month, of all land trans
actions. the money consideration being
the principal data.
Had proper audit been made in the
public works department. defaleations
could have been reduced to minimum.
"A proper system of exchange Of re-
ceipts between employees of the govern
ment. receiving or disbursing cash
should be insisted upon.
Cash should always be counted at
the beginning Of audits and any dis
crepancy between the amount on hand
and the balance shown on the books in
vestigated It does not appear that the