The Marion daily mirror. (Marion, Ohio) 1892-1912, 1908-03-12

PREVAILS IN OHIO STATE TREAS
uRER's OFFICE, SAYS EXPERT
WHO EXAMINED BOOKS.
FINDS BIG DISCREPANCIES.
He Also Charges that Banks Have
Changed Their Security Without
Any Note Thereof Being Made
by the Treasurer.

Columbus, O., March l2--The state
is ahead some $4,000 interest pay
ments for state deposits, according
to the findings OF the expert account
ants that reported to the senate com
mittee investigating Treasurer Nc
Kinnon's office Wednesday.
The great discrepancies are credit.
ed to the poor system OF keeping ac'
counts I'm the state treasurers office,
McKinnon admitted the lack of sys.
TEN and said that he now fully real.
lied what a poor sygiom II Is. lie
agreed with Expert Accountant 10th
mans recommendations for new sys'
TEN.
The greatest discrepancy exists be,
tween the treasurer's cash book and
the correspondence from the banks
received along with the checks in
payment of interest on state deposits
By checking up these letters against
the cash book and allowing for Nc.
Kinnon's 5 per cent commission, the
accountants found the cash book
ahead $39, 9,SS9.95.
Only one month, that of August
1907. showed the treasurer's cash book
short of the correspondence by
SS9470. During the other months the
cash book was ahead by from 1856 to
$500 In November, 1907.
The difference between the cash
book and correspondence is blamed
on the loss Of some of the CORE
spondence, although as TO this no
one was positive McKinnon asid he
thought he was keeping ~ the let
ters, but Accountant Lothman pointed
hat hn huNn "A
good many by failure to keep them in
a good file The difference between
the banks statements and the cash
book is credited in part to mistakes
on the part of banks and to the drop
ping out OF some of them, although
McKinnon declared that until last fall,
when one bank decided to retire, the
bank list is intact.
That the states funds may be
jeopardized in case of financial
panic was pointed out by Accountant
Lothman. He said that the total
amount OF security for deposits now
on hand In the form of municipal
bonds is $1,S4O000, while in the form
of surety company bonds It amounts
TO $3,S4S,0O0 OF this amount of se-
curity more than $4,000 he said,
was given by the American Surety
Co. of New York, which has a capital
stock OF $2,500,000 and a surplus of
$2,000,000.
The state also stands to lose money
by the poor way in which the treas
urer signs his checks, Lothman point.
ed out. The line following the amount
OF the check is lett blank so that 1t
would be an easy matter, he said, for
some one to raise the check without
the bank noticing It. He said that no
perforating stamp, limiting the amount
of the check, was used,
That banks have changed their Sc.
curfty without any note OF it being
made by the state treasurer was
charged by Lothman.
The Capitol Trust Co. of Columbus
received $4,000 on deposit January
27, 1906, while the security now in the
office shows that the latter was no. re
ceived until August l. 1906.
McKinnon declared that there never
had been a time when the state was
not protected by security, however
The Union National banE OF Cleveland
received $4,000 December S, 1904
yet the security now in is dated Jan
uary IL, 1907
'The treasurer is entirely at Tho
mercy of the banks" stated Lothman
He has no record OF the security
what it consists of, nor where II II
from. The system of keeping tract
of things here is so incomplete tha
there Is nothing for us to get at tn,
bottom with. ] think that McKinnoT
could keep up modern system O
bookkeeping and filing papers, letters
etc, without the services of any addi
tional help, judging from what | hay,
seen about this Office"
McKinnon had told the committe,
Tuesday that he needed an extra book
keeper.
What ] find here is poor system.
do not question Mr.. McKinuon's o
Mr. Green's honesty" said l,othman.