The Caucasian. (Clinton, N.C.) 188?-1913, 1909-01-28

Last Legislature to Examine ths
State Offices Made Their Repor'
Saturday-severe Criticism of thu
Insurance Commissioners Office
Criticism of Other Offices-Insti
tutions Di Not Report to Treas.
urer.
The legislative committee of the
1907 General Assembly, which had
been engaged for over a month In
investigation of the record and gen.
era1 Office conditions in the State
| Treasury, the Auditors office and
the office of the State Commissioner
of Insurance, transmitted it's final
report to the General Assembly Sat
urday, and it includes a number OF
sharp criticisms, especially of the
Department of Insurance, as well as
of the Auditors Office for auditing
claims not clearly grounded on the
statutes cited as authority. This
last is possibly a criticism of the
Council of State rather than the Au-
ditor in several respects, as the gen
eral condition and management of
the Auditors Department as we'll as
that of the State Treasury are highly
commended.
The Insurance Department.
After detailing the insurance car
ried on State property by the de-
partment, the aggregate being ST.
| 191,900, the report continues:
Upon the examination of the
| books and accounts in the office of
the Insurance Commissioner, your
committe was unable to make any
examination which would be salts
| factory to them and just to your
| honorable body, to whom we. were
required to report the result of our
investigation. We, therefore, secur-
ed the services of an expert ac-
cOuntant to assist us in making the
examination, which we felt it our
duty to make. We transmit to your
honorable body the letter to us by
the gentlemen who made this exam
| nation:
Ito the Honorable Board of Com
missioners Appointed to Investi-
gate the North Carolina State Of
fees, Raleigh, n. C.
Gentlemen: Agreeable with
your request, we have examined the
books of James R. Young State In
surance Commissioner, during the
period of twenty-five months from
December 1, 1906, and ending Janu-
ary 1, 1909, and beg leave to sub
nit the following remarks:
Books Not Properly Kept.
1--WE find that the books have
not been properly kept and balanced
and that no cash book has been kept
showing the accurate receipts and
disbursements of the funds handled
during the period of our investiga-
ton. Neither could we find at any
time before or since the period OF
our investigation began where any
balance sheet had been rendered
showing the balance on hand, If
any: therefore, we have been unable
to determine what balance, if any
the State Insurance Commissioner
should have had on hand Or due the
State on December /, 1905. How
ever, we find that his bank pass
books show a balance in bank on
December 1 1906, of $12, 1896, in
which should have been $3,248.4C
belonging to the investigation of the
fire fund according to the commits
sioner's record, leaving a balance OF
$S,904.29. Owing to the condition
and manner in which the books have
been kept, We are unable to deter
mine where it belongs, except thai
the commissioner claims it has beer
his custom to always keep some S.,
900 or $4,000 of his personal fund:
in this State depository bank tt
| meet all balances that may be due
to the State and not included in hi
remittances to the State Treasurer
We are also unable (without con
Stunning more time and going furthe
2 into the records than the committee
, felt it was their authority to de
termine the accurate ledger balanc
on December 1, 1906, for the reasol
that We found in some instance
where business handled during tn
r period of our investigation, whicl
began on December 1, 1906, ha'
been entered on the ledger prior t
that date, but we did not go bacl
enough to determine all charge
against the commissioner for bust
, uess so entered that belonged to tn
q. eriod of our investigation.
: g In view of the manner in whic
- books have been kept and tn
a~ ice of a proper cash book of re
ce and disbursements, the bes
+ We re able to do, with the perio
a you ~1sh investigated, was to estal
8 lish all charges and collections {
State funds according to the record
found and allow credits for di
bursements according to ban
e vouchers, which we have done, an
d herewith enclose statement of SAN
o showing a balance over in ban
d amounting to $4,9S5.09, and whie
10 settlement you will note does n,
r. include the commissioners fees, a
le prisals, cash and coupons, which Il
r. commissioner claims were items NJ
due to the State and were handle