The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1903-11-06
Auditor Castle Tells of Abuses Which
Have Grown Up Under Present
Accounting Methods.
MAKES RECOMMENDATIONS AS
TO HOW THEY MAY Be CURED
Aggregate Transactions During Past
Fiscal Year Were $1,O26, 731 ,4Os-
Less Than $3.50, 900, 900 of This Sum
Has Shadow of Double Audit
Laws Which Should BE Enacted.

Washington, Nov. 2. Various
recommendations to cure defects in
accounting methods under which
abuses in the postal service have oc-
CURED, are made by Henry A. Castle,
auditor for the post Office department,
in his annual report to the secretary
of the treasury and the postmaster
general. He says that the defects
pointed out make infinitely greater
postal abuses than those already dis
closed not only possible, but safe.
transactions During Past Year.
The report says the aggregate trans
actions of the postal service during
the fiscal year were $1,026, 731, 4OS, as
follows:
Revenues, 1874, 224 .443; expenditures,
$138, 7S4,4SS total amount of money
orders issued, $3SS,S65,5 1884; money or
ders paid, 1884, $50, 1893.
Mr.. Castle says: "Presumptively
there is double audit of all govern
mental receipts and disbursements,
but literally under existing laws and
conditions 80 per cent. of the postal
transactions can have no examination
whatever in the post Office department
Less than $150,000,000 of the 81 ,0OO,-
100000 annual transactions can nave
the shadow of double audit
AS to claims for railway mail trans
portation, aggregating about $4,000
300 year, the report says the auditor
must rely wholly on the bald state
ment of the departmental authorities
that the amounts certified are due aud
payable.
Recommendation Made.
The report recommends an amend
ment to the law prohibiting the pay
ment of any salaries or expenditures
pertaining to the business of the post
office department, by order on a post
master. 1t also recommends other
safeguarding amendments, together
with an increase of 100 clerks to han
die current business and vitality impor-
tant work necessary to the safe audit
Of $1,000,000,0O0 a year. The au-
ditor summarizes the recent inves-
tigation of the methods of his
office and deprecates the fact that the
auditor keeps no account for postage
stamps, stamped paper and envelopes,
etc., bought by the post office depart
ment from the manufacturers or con-
tractors, aud urges law to remedy
this defect.
The auditor recommends that con-
gress amend the laws so as to provide,
when ANY branch of the government
desires to use a patented article in
the public service, some just method
of deciding on the value of that ar
tfcle, based on cost of manufacture,
reasonable profit and fair royalty, and
that the same be fixed as The
price to be paid therefor. The man
ufacturer would, doubtless, in all cases,
be willing to accept the price thus es-
tablished. He would have no motive
for offering brides to any official for
approving the sale. and the government
would secure the desired improvement
at minimum cost. If the manufac-
turer should refuse the price thus es-
tablished, provision might be made for
invalidating the patent as to articles
required for the public service"
This recommendation is based on the
alleged criminal practices, for which
trials are now pending, which, in al
most every instance, the auditor says,
have occurred in the purchase of arti-
cles covered by patents, and as to
which the general principles prevail
ing in purchasing government supplies
on competitive bids cannot be en-
forced