New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-11-01
DEFECTS IN AUDITING.
FRAUDS MADE EASf.
CaDtain Castle on Lac Methods IN
PostoHce Department.

Washington Oct 3.-Various recomfnenuatoiiS
to cure defects in accounting methods uhoer WiiC
abuses in the postal service have occuIieo ai'
mad, nv Henry A. Castle, auditor Tor the fost-
office Department in his annual report l" .he Sc.
Rotary Of the Treasury and the Postmaster ueiieiN
Captain Castle recently resigned he say lile y.
fects pointed out make infinitely great, pos 49,
,huses than those already disclosed not only Poes
hIe h,,+ safe The aggregate TRANSACTIONS Oh 'ne
ncstaI service in the fiscal year were sloz'''of, 90
follows: Revenues, s1S4 443; expenditures
4Ss: total amount Of money ORDERS iSou' 80 49,
So ga money orders paid. 1854 $685. Mr. Castle
says:
nentsf receipts and disbursements but
literally under existing laws anu an b9vs no
Examination iG the ~, PSs9se SSPa an
ment Less than sl50"o@o OF t the SiGbsSog Of a
double audit"
AZ 20 claims so- railway mail transportation
asrreSatng about s40OO00o0 year. the report says
the auditor must rely wholly on the bald state
ment of the departmental autho,,t'eS '''''
amounts certified are due and Pay@''. . 49,.
The report recommends an anienuiient " W
law nrohibting the payment Of any saiaries or ca
penditures pertaining to the business Va 'iie
office Department by order on a p0seuiao .
also recommends other safeguarding aHienNti
together with an increase of 1870 CLERKS 10 hanoIo
go. heir1ss and vitality important work neces-
cary, IN the safe audit of si,Oo,ooo"' a year. 1ne
auditor summarizes the recent inVesusd@ion VI 90
methods of his Office and depIeca" ' %.
that the auditor keeps no accounts lux
stamps stamped paper. envelopes e'o'' OCueI.
the Postofce Department from the manuia ctuieis
or contractors and urges a Ia" 10 ieiiiSHS ~
defect. ,d
The auditor recommends that congress -
the laws SO as provide, when any Old"oH u - =,
government desires to use patenleN ...,r
the public service, some just metlou u -. -
IN the value of that article, based on coSt
and that the same be fixed as the price 10 DC p ~
therefor The manufacturer would doupl'esS -
cases be willing to accept the price mus -
lshed. He would have no motFe ioI
Iribes to any official for approving tne Sale' o.
the government would secure the desired L.
rnent at a minimum cost If the maIuIactNi
sbo,,Id refuse the price thus established, provision
might be made for invalidating the patent aS ~
articles required for the public service
This recommendation is based on the dIesvu
,rIr,i,a1 practices for which trials are now PEND
ing which in almost every instance, the auulto'
saws have occurred in the purchase OF aru0i'S
covered bv patents and as TO which the general
principle prevailing in purchasing government sup
niles on competitive bids cannot be enforced
Tho renort saws that investigating committees
have found that the forms Of vouchers used in
handling postal funds arc deficient IN many I'M
portant particulars and are such as ~ouio not o0
generally received. They are not used IN oIhef
branches of the government. But they are the
forms prescribed by the Postoffce Department IN
strict compliance with the law, and the audltor
office is powerless TO change them except through
the courtesy of the Postmaster General 1t has oee
officially reported to the Treasury Department IN
connection with this defect that there can be no
independent audit under such conditions. Better
vouchers should be required"
The auditor urges that the law be changed SO that
the Controller of the Treasury shall prescribe the
forms of accounts and reports in the postal service
Regarding the payment of millions Of dollars Tor
the railway mail service On the mere certificate or
the Second Assistant Postmaster Generals office
that the service has been performed the auditor
says:
There is no evidence H. the auditor office as 70
Tho weight of mails carried by the respective rail-
roads tending to show the amount of pay 10 which
each is entitled under the law. This matter Is
fixed and determined by the POstOffice Department.
and is Il practice that has grown into use until il
has become regarded matter OF rght OF t1e
administrative Office adjust and settle accounts,
simply certifying TO the auditor only the junction
of carving out the DEGREES of the department A
recent carefully considered report to the Treasury
Department correctly says; , - ,-.s
This practice cannot be too strongly CONDEMNED
or too soon corrected by an amendment or the Ia"
if necessary. - -. -
portance OF promptly taking up this long neglecteo
work The data furnished this Office by the POST
Office Depa rtment Is manfestly insufficient 1t being
a settled principle that in auditing an account We
were entitled to all the information possessed Dy
the department when the account was ceTTiued