The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-01-24
$4,000 Deficit
IN BOUNTY FUND
Echo in Legislature OF Exten-
Sive Frauds of Two
Years Ago,
OFFICIAL REPORT IS FILED
COVERS INVESTIGATION eY
STATE BOARD OF EXAMINERS.

The present legislature Will be called
upon to provide means FOR the payment
of -s19569.59 for outstanding animal bonn
ty claims. according TO a report sent to
both houses yesterday by the state
board of examiners
The report is an echo Of the bounty
fraud expose of two years ago. In the
house the report was referred to a spe-
cial committee consisting of MesSrs.
Kuchler. Thompson and Tolton
The report is the result OF an investi-
CATION running through the past two
years by the state board Of examiners. in
accordance with resolution Of the last
legislature. During the investigation
1872 bounty certificates were submitted
TO the board aggregating in amount $50
$3.50. OF this amount the board allowed
$l6lS. Doubt was east upon the validity
of the remainder S4.4l520 because Of the
fact that they came from counties where
frauds had been exposed. After eXamna-
ton. the board allowed S2S,36S9l making
total approved of 81, 55l.S. The state
auditor paid on the total sum S249S2.3l,
leaving a balance to he provided for by
legislation Of S1a569.59.
The report in full is as follows
Text of the Report.
The the Legislature: BY an act Of the
legislature Of 1905, designated chapter 1CS
the state auditor and the state board of
examiners were required 10 examine into
the validity of outstanding certificates
for the payment OF bOunties issued under
the provisions of chapter 1871. laws OF
Utah, 1901, and chapter As. laws OF Utah,
1908. for determining the liability OF the
state therefor and authorizing the pay
ment Of such said certificates as are as
certained 10 be valid making provisions
for such as are ascertained TO be in
valid, and directs said hoard to make
report OF its proceeding to the legislature.
Section OF the above act requires the
~ 70 hoy mud
amount of all outstanding certificates is
sued by the county clerks prior to Jan.
20, 1908, and directs all persons having
in their possession any OF the aforesaid
certificates to file same in his office on
or before May !. 1903.
Section directs the state auditor 10
examine all certificates so filed. to make
thorough investigation as TO the condi-
tons under which they were issued, and
II deemed necessary by him. TO make
personal inspection Of the books and rec
ords OF any county clerk for the pur-
pose Of ascertaining IL there were any
evidences OF fraud connected with the is
suance OF any such certificates, and to
report his finding to the state board of
examiners
Aggregate Over $4,000.
ION the 18th Of May. 1895. the auditor
advised the board that he was prepared
TO submit his report and at later date
the board with the state auditor present.
DtEdn the examination OIL the certificates
submitted TO 1t by the auditor. Nineteen
hundred and seYenty-two certificates were
submitted and examined. aggregating
$50 59s. 20.
After careful investigation. and upon
information supplied by the auditor. the
board approved as valid certificates
amounting to S161SS.
Section z of the above act among
other things, provides that If the state
board of examiners and the state auditor
shall determine that any Of said certifi-
Gates were Illegally or fraudulently pro-
cured or issued. and shall further find
that said certificates are in the hands of
innocent third parties who have pur-
chased the same for value. then the said
auditor and the state board of examiners
shall require such innocent purchaser for
value TO make proof under oath OF the
actual amount paid by them for such
certificates, and said state board Of ex-
aminerS and state auditor shall thereupOn
allow to said innocent purchasers the ac-
tual amount which they have paid for
such certificates.
II have attached hereto copies of two
reports made by the state auditor TO the
state board Of examiners, in which will
be found his reasons for classifying the
certificates into two classes-legal and IL
legal.
THE auditor attended all meetings Of
the board when these matters were under
consideration. and furnished verbal in
formation IN addition to that contained in
his written communications.
Submitted Under Oath.
While no absolute proofs of fraud were
produced In relation To any Of the ceTtifi-
Gates. Yet the evidence was sufficient to
cast a serious doubt upon the validity Of
a large number OF them, amounting to
$34, 415.20, and the board, becoming salts
fled that these were held by innocent pur-
chasers. required such producers TO file
with the board a statement under oath.
describing each certificate, and the
amount paid for same, as required by
law, and they We're approved for SIS. COS. 80
so that the 1872 certificates submitted TO
the board and amounting TO $50. 59S. % were
approved for S44. 80, since when ESQ the
board is advised by the state auditor
s24 1921 has been paid leaving unpaid
certificates aggregating $l9.569.59.
THE claim register Of the board con-
tains a complete record Of each certifi-
cate and the sworn affidavits of the pur-
chaSers were transmitted 70 the state
auditor with the certificates.
STATE BOARD OF EXAMINERS.