Every evening, Wilmington daily commercial., 1906-02-03
IN LEGISLATIVE INQUIRY
INTO The Pennsylvania Insurance De-
partment and The Fees Of
The ACtuaTy.
Mr.. DURHAM IS IN CALIFORNIA
Went There for His Health by
Doctors Direction.
HIS RETURN MIGHT PROVE SERIOUS
A.,ooiAssd rro.i DlIparca ~ speoial wn...

Harrisburg. Pa, Feb. 8-Ths lsais.
lative inquiry into tho Pennsylsania
Insurance Department and the fees Of
the nctuary was resumed at 10 O'Clock
this morning IN the House caucus
room Of the capitol
Francis Skunk brown Of phlladei- /
rhia, counsel for Israel w. Durham, =
iormer commissioner, read a letter
from DR.. Alfred Stenpel OF philadel-f
phia, stating that Durham won't TO
California for his health by the doc. !
tors direction and that a "return
might prove most serious and might
indeed, directly cause a serious, ifl
not fatal, relapse. "
Before the beginning OF the taking
OF testimony, the committee decided
that when 10 adjourned today IL would
be 70 meet next Monday afternoon al
3 o'clock.
The first witnesses called were Israel
q. Stone, Ed. J. Davis, Charles b.
Grey ana r. M. j. Reed, none Of whom
appeared, and no return was made OF
the subrwnas issued for them. Chair
man Fox stated that he had word from
the assistant aerReAnt-at-almH, at
Wellaboro, that Stone left his home
yesterday and had not returned Stone
and the other three are the men Who
Deputy C1mminaionor McCulloch tea-
titled we're carried on the pay-rolls of
the department under the Durham
administrAtion and performed no nor-
vice.
William p. Snyder, auditor general,
was called 20 teatify to business meth
ods employed by his department. and
its relations With she lnsurnnoe De-
rartment. He said that from men en-
ployed IN bis department for more
than 20 years ho learned that they had
no personal knowledge OF any examina-
tion by the auditor-general Of the in
suranoo or any other departments Of
the State. No examination was made
by the auditor general Of any depart.
ment except when there was . nus-
plcion Of error Ia the accounts Ho
believed that q special person ought 70
be designated by the Legislature 20
audit the accounts of All departments.
Snyder said 10 was impossible for the
auditor-ge -genaial TO audit tno accounts
Of other departments without neglect
ing the important affairs of bis own
department. with the present force
he suggested that an auditor for ell
the departments be selected by the
governor, Auditor-gonoIal aud State
treasurer, which would make such a
person independent Of any one depart
ment. N n department sends 20 the
auditor-genornl an expense account
that ID not allowable, the head of the
department ia called upon 10 explain.
This has been done, Snyder said,
great many times during bis adminis-
tration.
Snyder produced the vouchers for
the pay Of Reed, Davis and Stone for
clerical services, which we're certified
10 by Deputy Commissioner MoCul.
looh for Durham. Replying TO Mr..
DewAlt, the witness said he did not
believe the act Of 1871 made IL manda-
tory upon the audiior-ReneFal to exc
anime the accounts OF other depart
ments. Ii was tho practice OF the
auditor-general TO accept from tho
head Of another department an account
for an expense, unless ID was found to
be incorrect or Illegal. There was an
itemized statement OF the personal
fees claimed by the insurance commits
sioner Of record in the Auditor Cen
erals Department, but no itemizsd
statement Of the fees not personal re-
/ ceived by the commissioner.
James 4. Jeiiers, warrant clerk OF
the Auditor Generals Department,
. who was called TO explain the business
methods employed by that department.
with the Insurance Department, said
there was nc check en- the accounts Of
: the insurance commissioner for his
: department.
The warrants Of Davis and Reed,
: Whiuh we're identified by Jolfers,
! showed that a warrant TO Davis FOE
{ s240 was sienud by Reed, and Reeds
warrant for O similar amount was
: signed by Davis JeiIera said the de-
partmenl would have found this error
. when IL made an audit Of these ao-
: counts. The department was seven or
: eight months back with this work. It
. was q physical impossibility to keep
the audits up to date. JefIers said the
: department had no knowledge Of the
) correctness of the statements Of re-.
ceipts and expenses filed by the lneur-
. ance Department
"Do any Of these departments fur
nish you payrolls, I" asked Mr.. DeWalt.
"Not one. The payrolln go to the
State treasurer.
docs ths Insurance. Department
"No, cir. They furnish vouchers
only"
Jeifsu explained that after the pay
rolls passed Though the State treas
ury they we're filed In the Audit or
Generals Department.
Mr.. Dewalt asked that all the Vouoh-
ers Of Stone, Davis, Reed, Erb, Grey
and, II there be any, Of Daniel ]. No
Niohol, John II. Slater and Charles
L. Brown be furnished to the commit
tee from the time these persons were
in the States service, for the purpose
Of comparison of the signatures.