Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-10-09
FAULT IN BOOKKEEPING
No Suspicion of Peculation or of
Other Wrongdoing.
NAVY WILL LOSE NOTHING
Material Unaccounted for Believed
to Be Actually in Use at
Other Depots.

A difference of more than three million
dollars in the value of materials actual
ly on hand In the Washington navy yard
and the amount called for by the books
is revealed in the first complete inven-
tory taken at the yard in twenty-five
years.
The shortage is ascribed to faulty book
keeping and not to peculation. There is
believed to be no actual loss to the navy.
but that the materials missing are in
use in other places than the Washington
navy yard
Materials used in ordnance manufacture
without being properly withdrawn by
stubs from the account of stock on hand.
shipments of materials to other yards
without proper invoicing and shipments
of materials on rush orders. during the
Spanish war. without invoicing. are sup
posed to be the causes for the difference
existing, and the explanation now ac-
cepted at the Navy Department.
Inventory Ordered by Secretary.
The modernized system of accounts was
introduced by order Of Secretary Meyer.
July /. this year. A general storekeeper
took charge September IL, and the in
ventory was directed. The result is just
reported. and shows an actual shortage
of s., ,22SS ,27O.os. Inventories have recently
been taken at all other navy yards, with
the result that small discrepancies have
been discovered. but none, with the ex-
ceptiOn of the Washington shortage, Is of
material significance, and have since been
adjusted.
In the past, owing to the faulty meth
navy yards to ships were frequently not
invoiced for months and even years after
their delivery, the consequence being that
at any particular time the books of the
yard would show greater value of ma
terial as being on hand than would actu
ally be found by inventory, while the
ships would have aboard quantities of
material not accompanied by invoices.
and. therefore. not shown on the books.
nance units. this practice was particularly
liable to show large differences between
the values of ordnance materials actually
on hand and as shown by the books.
Great Values on Materials.
The forgings of one big gun, alone, are
valued at 100000. Gun mounts are near
ly as costly. "A few. such big lots Of ma
terials used or shipped without record
would cause big discrepancies in the ac-
counts.
1t was because of the antiquated meth
DDS of bookkeeping and accounting that
Secretary Meyer employed expert ac-
countants in July. 1909, not only I'm the
department., but In the navy yards.
The first navy yard in which the ex-
perts were placed was Boston. i'm July,
1909: then at the other yards in the fol-
lowing order: New YORK, Philadelphia,
Norfolk. Portsmouth, n. H.; Puget Sound,
Mare Island, Charleston, s. c., and Cavite
and Olongapo.
Complete inventories of ordnance ma
terial were made in each yard, other ma
terials being constantly inventoried by
the general storekeeper and improved
and up-to-date methods in bookkeeping
installed.
Washington Last on List.
Washington was the last of the in
dustrial yards to have the new account
ing system established and inventory
made. On the 10th of February. 1911,
pay officer was detailed by the depart
ment for this purpose; also instructions
We're issued that an accurate inventory
of materials In the Washington yard be
taken by the general storekeeper.
1t was to keep accurate track of all
stores and prevent errors in accounting
such as have brought about the con6i-
tiOns discovered at the Washington yard
that Secretary Meyer originally employed
experts to plan the new accounting sys-
TEN which is now being carried out un-
der the paymaSter general.