The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1903-11-01
AUDITORS REPORT SOUNDS WARNING
ON POSTOFFICE AFFAIRS In FUTURE
Recent Scandals Mere Details What They Might Be Under System
Auditing Acknowledgement Official Comments Freely

Capt. Henry A Castle. as Auditor for
the Postofiice Department, has deliver
ed his annual report to the Secretary Of
the Treasury and 20 the Postmaster
General. The report abounGs n tren-
chant criticisms of the present hmita-
tons OF the auditors Office. d.59 to de-
fective legislation and to a force which
he declares totally inadequate to handle
the postal business
The transactions OF the POstOfice De-
partment were more than a billion of
dOlla.s in the last fiscal year and are
estimated to be growing at the rate Of
10 per cent a year. Speaking of the lack
OF examination OF accounts, for which
lack his Office is not responsible. Cap
tain Castle says:
Double Audit Seldom.
''Presumptively there is double
audit of all governmental receipts and
Disbursements, but. literally, under ex-
listing laws and conditions 90 per cent
of the postal transactions can have no
examination whatever in the Postohice
Department. The accounts come direct
from the postmasters to the auditors
Office, where. except for the fragmentary
reviews recently introduced and de-
scribed in my last report, they are
never .re-eNaniacd. Less than S150,o00,0 600
OF the Sl.oc0 100000 annual transactions
can have the shadow of a double audit
AS TO matters which receive q pre-
liminary administrative examination, IT
Is q fundamental axiom Of correct ac-
counting that the auditor is entitled to
al the information possessed by the
do pertment when the account was ap-
proved. But as 20 claims for railway
mail Transportation aggresating about
Szo.o00e00 a year. the auditor must rely
wholly on the bald statement OF the de-
partmental authorities that the ac-
counts certified are due and payable
Accounting Methods Loose.
In another section Of the report Cap
tain Castle sounds a warning that the
scandals in the Postofice Department
now agitating the country
r-a T--ais compared with
r-- because of the
lditing system. He
fte rea rs of the past few
ert of administrative in
Us remedy IS TO cure
tae accounting methods.
HhicE uek nitely greater abuses
~ not only possible but
safe. IDe be no more urgent re-
du!rement Of this bureau than that it
be placed by additions TO its corps of
exl. ert employees and by needed legisla-
tive enactments. in a position TO more
adequately meet the present and future
dem pds upon it.
No Tab on Railroads.
Captain Castle points out clearly and
specifically a number Of eases in which
he has To audit and be responsible for
Immense sums Of money without know
ing any OF the details OF its receipt or
expenditure.
The most glaring instance 10 be cited
Is in the eBoFfnsus transactions between
the PostofIsce Department and the rail-
roads. These accounts are handled in
The Office of the Second Assistant Post
master General. out the particulars Of
how the S4o.OO0.00o annually expended for
the service is disposed Of do not come
10 the auditor. and he has to accept
tie bare statement Of other officials Of
the department.
Haphazard Methods Alleged.
Lack Of proper accounting Systems in
the payments for stamps. the impossi-
billy under present conditions of prop
erly auditing the money order accounts.
the imperfect method OF accounting for
money received for second class postage
and numerous other matters IN which
the Government Is exposed 10 the posi-
bllify OF enormous swindles IRE dyveit