New-York tribune., 1906-07-18
SHORTAGE NOW S333 600.
TIRE ASURY METHODS TOLD
DsfaIcatiop Not Fully Explained
IN Officials Statement.
- The rrlbnna Rnrean. ]


Lexington. July 17.-Treasury officials are
- sn,gently az work on the accounts OF the
.r.tor George Ansel Bartlett. chief disburs-
oegoer Of the Treasury. with the result that
,ba close Of business to-day il was announced
=. che defalcafion amounted to SS3, 900. an in
~ 5000 over the s3100O admitted 70 be
.tortase last night. Deducting the $4,000
~bioh the officials hold the Boyd defalcation
,sibIe this would leave $4,000 chargeable
!, Major Bartlett
s.crstsYy Shaw discussed the situation with
-,sper correspondents to-day, but declined
!. quoted on the subject. The following state
...1t was issued during the day:
T,aasurv oflcial explained the method by
- he shortage occurred as follows;
..1sries Of all clerks and government en-
roseIsf bv check the treasurer's Office would be
ooas 81 leave their desks during Office hours or
ls trsssllrer's Office would have to run nights and
sgnassc-ice disbursing officers draw seml-uncnth-
:, enough 10 pay the regular roll in 1ull Some OF
r.e1th and some win be absent at the time Of
Es,ns LETT in his possession quite little sum OF
,1sv He is charged on the treasureTs books
- 9ba amount he draws, and Is given credit for
~ ,enchers he turns IN. The difference Is shown
Z - ia his possession
t - las been required to make a showing TO the
L5.oT Ls each month, and Major Bartlett invariably
haa 55eesalcstion 5es Of Mr. Boyd was discovered Mr..
s5sE issued sn order requiring all disoursing ON
a. he Treasury any and all money in their
l--sssssion On the fifth and twentieth day OF each
gss and TO make subsequent payments during
y. -,orfh hy check. This takes from the diSDurs-
y oSoer the temptation incident to having cash
rS,vfsRes ike the one of Major Bartlett This
oEs4,Se oEes5 81 criticism from other departments and
-si appealed 10 the Secretary TO Tescind II; this
= refused 70 DO. Major Bartlett had oeen ois-
s,si1g ofscer for the Treasury Department for
years during i1i;dn whieh tine NJ doaIs he had pf4a
siTays had n his possession a few thopsands or
sash Ehe9 ,2o ne bI the auditor which, under the
sserstarv's orders, has been each month
:, is supposed from this that tire auditors,
,esr checking the payments made by Major
ps-tle-r. accepted the fact that he had a, con-
siderable cash balance on hand as evidence Of
ybs correctness Of his accounts without actu-
.nv counting the currency. It has also been
suggested that some one may have obtained and
-urned in vouchers for amounts paid out. with
an such payments having been made until sub
,sauently. thus affording an opportunity TO mis-
,sad he auditors In any case, the explanations
given bv the officials were lacking in lucidity
and served rather TO mystify than to enlighten
,soss who inquired for definite information as TO
bor the defalcation could have occurred and
could have remained so long undetected.
I
ctarged. that Major Bartlett was not aware that
,bsre was a shortage in his accounts for some
tine before his death, although no definite rea-
sons for 90 assuming were presented TO inquirers
From another source in the Treasury Depart
wsnt II was learned that the method Of auditing
tbs accounts If chief disbursing officers leaves
lsrgs loopholes for dishonesty and fraud. It is
asserted that chief disbursing officers, to account
I'm money they have handled, exhibit TO the
su6rors vouchers for sums paid out and their
bass showing charges against disbUrsing
sgsnE IN other cities of sums which are, pre-
snnsbly in transit or at least have been so too
recently 10 permit Of vouchers having been re-
tmned. There is. therefore. It is said, no meth
ID whereby the auditor can verify these latter
charges and they may be gradually augmented
until a considerable sum may be shown 70 be in
transit whereas practically the entire amount
has been diverted from its proper channels.
Several months ago, however, Secretary Shaw
issued an order requiring disbursing officers TO
rs5sposit in the Treasury at the end Of three
days after each monthly payment of salaries all
BnsEpended balances This order added ma
isnaly 70 the work of disbursing officers and
net with much opposition on the part Of some Of
them. Bovd's defaication,. however convinced
Secretary shaw that under the old system 1t
vas possible for a disbursing officer 10 carry
forward his shortages from month 10 month
without detection. and he determined to make
he change Mr. Shaw believes that by the new
method defalcations may be detected the first
tine disbursing officers accounts are audited,
bgf this view is not held by some of his subor-
5inates
There is ~ ao,,t7t however that if he has
ame the Secretary. with the assistance OF the
auditors, -rfl devise some method for the ab-
sufe safee,,ar riding IF the accounts as the feel
hg n rnoerTsirrz created bv the discovery that
pscaations of unknown. even if not Of large
amounts have been going on for some time un-
detected is raosr irving 10 the responsible off
Gals Secretary Shaw appeared TO be somewhat
worried "a hen seen to-day. although he eK-
Pressed confidence that the barn door had now
oeen securely locked