The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1903-04-19
Special Treasury Com
mittee Discovers Lack
of System Which Might
Permit Theftof Millions
From Postal Funds.
Now Rests With
Secretary Shaw, Who
Is Expected to Order
Investigation Check
ing Accounts.

Secretary Shaw viii unexpectedly be
drawn into the upheaval caused BIZ the
postofice investigation The committee
which he named to suggest improvements
il systems OF bookkeeping employed in
various Treasury divisions seems TO have
done It's work TOO well. so far as the Of
fee Of the Auditor for the Postoffee De-
partnent is concerned.
The committee will soon report TO the
Secretary Of The Treasury, and viii
charge looseness which would permit the
stealing Of millions by dishonest en-
pIoyes-
IL VIII charge that in auditing the ac-
counts Of the chiefs OF such divisions as
salaries ana allowances. postoffice sup
plies, free delivery, and rural free de-
livery, against when charges OF ex-
tTaVagance have been freely made Il
was the auditors duty 10 act IN an ad-
visory capacity, and that II he has per
mitted abuses Of authority he IS equally
blame worthy with such chiefs
An attempt viii be made 10 show thaE
the method employed in maintaining 4
Bureau OF Engraving and Printing. as
compared with the number that are fur
nished on requisitions OF posJmasters- IS
at fault and that there is No effective
manner OF preventing frauds
TIE foregoing viii be a part OF ths
criticism which viii be made of he
Office of the Auditor. and which seere-
tsry shaw viii have TO investigate. as
The auditor for the Postoffiee Depart
ment, although be reports directly 10
the Postmaster General. is Yet a suber-
dinate Of the Treasury Department.
New Phase of Scandal.
The postofiee scandal has thus TAR
been confined TO divisions under the
First Assist ant Postmaster General
There has been no charge Of Iaxity in
the Office Of the auditor for the depart-
ment. and that there should even b
hint Of loose methods in auditing the
maze OF accounts which come under the
final decision OF Auditor Castle fur
nishes the incentive for thorough in-
vestigation-
The greatest clearing house IN the
world is controlled by Auditor Castle.
Though not generally known. the money
order system alone, which is checked
under the supervision OF Mr.. Castle, car
ries more than $500 600 600 year, sew
eraI million dollars more than that Il
the Bank Of England. 1t is accepted
that il there is any place where <hs
most exacting system should be used
in the auditing of accounts it IS in ths
Office OF the Auditor for the Postof1ics
Department.
Secretary Shaw's Investigating COM
mittee has made many discoveries in.
the four months it has been at work, but
none so startling as those which leaked
out late Yesterday afternoon. Thus Tar
NIr. Shaw has not learned OF the result
OF the work done by his committee,
which, by the way, was organized with
scrupulous care from men who have had
years of experience IN examining ac-
counts. The committee consists OF one
man each from the Offices OF the au-
dltors for all the departments and one
from the Office OF the Comptroller of
the Treasury Their work has been
performed with so little ostentation
that few people knew there was such
committee.
Discoveries Kept Secret.
Discoveries made By members Of the
have been maintained as Sc
crets. II has been only since the dis
in the Postoe1ce Department
thai anything has been learned OF the
committees efforts TO arrive at the
facts regarding systems OF checking ae-
counts The hrst thing TO invite ques-
tion was the method OF accounting for
stamps received from the Bureau of En-
craving and Printing and disbursed 10
post masters. No statement vas made
as 10 the exact manner in which such
check was made but s- member oE the
committee did say that l was so loose
that ii cannot BE told whether all the
stamps printed are sent 10 posJmasters
or not"
The system IS regarded as so bad. it
was said yesterday al the Office OF ore
OF the Assistant Secretaries OF the
Treasury, thar tie division OF Internal
reVenue OF the Treasury Department.
VIII De asked TO furnish a guide TO the
system eaapIoyed in checking re. emile
stamps IN er5er 10 install similar
plan AT the Foatodjce Department
Three checks are kept on internal
revenue stamps.
The paper on which they are printed
is manufactured by the New York and
Pennsylvania Company. aad Is used Ior