The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1903-05-01
SCANDAL in the
TREASURY RUREku
Alleged That Extremely Loos,
Methods Have Been Too
Much Used.
MILLIONS MIGHT BE LOST
Methods of Counting and Cancellins
Stamps Are Criticised as vioIat-
ing Law and Being Extreme
ly Inviting to Frauds.

Washington, April 2e.-The commit
tee which for nearly four months has
been investigating conditions in the
offices of the various auditors under the
treasury department has uncovered
loose methods to indicate there is dan
ger that the scandal enveloping the
postoffice and interior departments may
extend to the treasury.
The committee has secured a good
deal of information which tends to show
that the extravagances and lrregulari-
ties of the supply division Of the post
office department might have been
curbed and restricted very materially
If there had been closer auditing Of the
accounts by the auditor of the treasury
for the postoffice department.. 1t Is al
legged that II. A. Castle, auditor for the
postoffice department, has received a
good many favors of n kind and an
other from postoffice department Off
Gals, and, while his honesty has not
yet been called INTO question, it Is con-
sidered a bad practice for an official
who is charged with the duty of pass
ing upon the accounts Of other officials
to accept favors, however trivial, from
such officials.
Law Openly Violated.
The most startling exposure of the
special committee, however. establishes
beyond a doubt that al important law
for the protection of the governments
financial interests is being broker I'M
der the eyes OF the secretary of the
treasury. In fact, there can be no
assurance that the government has not
already suffered loss to ar incalcu-
liable extent.
The law violated is the n which
throws safeguards about the internal
revenue bureau in the matter of can
ceiling stamps. The violation has been
such hat it would have been possible
- - -. - -
have been equaled here in Washing
ton.
The law regulating the redemption of
revenue stamps for which the pur-
chaser has no further need provides for
a double count in order that the gov
eminent shall not be defrauded or
made the victim of theft. When the
stamps are sent in by revenue col
lectors or private persons they are
counted by a force of clerks under the
chief of the STAMP division and credit
is then given to the collectors or per-
sons surrendering them. The stamps
then pass to half a dozen men known
mittee is required by law to make a
recount Of the stamps and destroy
them.
Stamps Are Not Counted.
At one time there were 300 tons o.
stamps on hand at the treasury depart
ment awaiting counting and destruc-
ton. A force Of thirty clerks in addi-
ton to those regularly employed worked
for a year in counting the stamps. The
stamps are then passed to the d%estruc-
ton committee. 1t is plain that it
would have been impossible for this
committee of six to have made the
count and destroyed the stamps unless
they were engaged six or seven years in
performing their duty as required by
law, yet the committee kept up the
work of the forty regular clerks who
made the first count.
The destruction committee is COM
PEELED under the aw to make a sworn
statement that it has counted n
destroyed all Of the stamps. In the
statements filed the words counted
ana have been stricken out In nearly
every instance.
of the destruction committee have not
counted the stamps at all and there
have been great opportunities for theft.
1'he value of stamps surrendered for
redemption in the last year amounted
to several millions of dollars and the
number of stamps destroyed to many
millions more.
There is a strong tip hat Secretary
Shaw has called a halt on the giving
u of information by members of his
Investigating committee. In view of
the fact that he government depart
1nent scandals are already attracting
attention throughout the country Mr..
Shaw is said to be anxious to keep his
w skirts clean. )