Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-01-02
Investigating the Interstate
Commissions Books.
EXPERTS CALLED In
RUMoRS IN CIRCULATION OF IR-
IRREGULARITIES.
It Was Deemed Best to Have Authoriz-
ed officials Investigate the Matter
and Set Doubts at Rest.

An investigation by expert accountants
from the Offices OF the controller OF the
treasury and the auditor Of the treasury
for the State and other departments Ii In
progress at the disbursing Office Of the In
terstate commerce commission. 1t was In
stituted this morning at the instance OF
Commissioner Clements. who is acting
chairman In the absence OF Chairman
Knapp. now in New York. Although 1t ID
not felt at the offices Of the commission
that any serious trouble exists. it was
deemed best to have the authorized officials
look into the matter and set any doubts at
rest.
Experts Called In.
Rumors having persistently come to the
ears Of the commissioners that there were
Irregularities in the office Of Secretary
Moseley, the disbursing officer Of the COM
mission. the action noted was taken. The
controller of the treasury was called upon
to institute an investigation and inspection
or all the accounts of the office, and fmme-
dtately detailed for the work Nathaniel M.
Ambrose and Richard H. Taylor, expert
accountants. In addition to these two
James L. Chase was sent to cooperate: Mr..
Chase is connected with the Office Of the
auditor for the State Department. The
three repaired to the offices Of the commits
sion. where they saw Secretary Moseley, H.
.. MuSlodO, CASHIER OF the COMMISSION, ana
other employees connected with the office.
In star chamber meeting those en-
ployes OF the commission were Informed
that the affairs Of the Office were Temporal
rfly turned over to the care of the experts.
Mr. Milstead gave up his keys and turned
over to the examiners all papers and rec
ords in his possession. and a seal was
placed upon the safe, the name Of each Of
the examiners being signed across it.
To Clear the Atmosphere.
No one connected with the commission
would admit knowledge of any specific ir-
regularities, but 1t was felt that the atmos-
phere had better be cleared and that the
proper officials to do this work were those
from the Treasury Department. In order
to simplify their labors the latter were
given absolute control of the disbursing
office, and will continue to exercise the
functions of the incumbent of the office I'M
til they have completed their work and
made their report to the controller. That
official will then notify the commission OF
the result Of the investigation.
There has been no accusation of any
character made against any one connected
with the office, and Cashier Milstead turned
over his keys to the experts. according to a
regular custom obtaining in cases of this
character. He has not been suspended. nor
has any one else connected with the Office.
and no such action Is at this time contem-
plated. The investigation Is taken simply
in order to ascertain the true condition Of
affairs in the Office and either to give the
reports foundation In fact or to prove
their untruth.
What Commissioner Clements Says.
Commissioner Clements said to a reporter
for The Evening Star that the rumors Of
Irregularities In the Office had become so
persistent that they could no longer De
ignored, and the Treasury Department was
therefore called into the case and given
entire charge of the office. He added that
he did not believe that the inspection and
auditing of the accounts of Cashier Mil
stead would result to the discredit of that
official, but that 1t was the unanimous opin-
ion that justice to all connected with the
Office demanded the action taken.
Secretary Moseley is a bonded officer in
the sum of $4,000. and all the employees OF
the disbursing Office are Immediately under
his control. He pays all salaries. drawing
treasury warrants for those Of the commits
sioners, as Is done in the case of justices CT
the Supreme Court of the United States
and other public officials. Not q great deal
of cash is handled In the office. the only
general use for 1t being for expenses when
inspectors are sent unexpectedly on BUSH
ness of the commission. when any Of the
commissioners make trip on public bust
ness, and similar matters. The method Of
drawing some of the warrants and vou,h-
ers for cash has been questioned by the
commissioners, and this started the uncer-
tainty that has resulted In the actual in
vestigation.
1t Is not known how much time will be
consumed in the investigation, this depend
ing upon what discoveries are made during
the course Of the work, but 1t can hardly
be completed within the coming week.