New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-10
AUDITING METHODS LAX
Millions Spent Without Control
Ier'S Sanction, PrOberS Find.
HIGHWAY FUND UNGUARDED
James Cameron, Recommended
by Fosdick, Named Chief
State Inquisitor.

Albany. Jan. 9-Governor Suffers in
vestigators learned to-day That OF the
Si3. 000. 200 expended from me states
general fund during the last fiscal year
$4,000. 900 was not audited by the state
Controller Much testimony along this
line 10 show the advisability Of estab-
fishing a bureau in the Controllers office
with complete powers to audit all the ac-
counts Of state departments was heard
by the commission.
James NJ Wendell, a Deputy Controller,
said that the state Education Department
spent s. ,O00. 900 on its own audit, and
that about $4,000, 900 year was ad-
vsnced to the state Hospital Commission,
the Controller receiving vouchers for II
only after the money is spent.
THE Controller has no power 10 audit"
Mr.. Wendell said. in answer 10 question
by John r. Norton. attorney for the com
mission
The state Education Depa rtment and
state Hospital Commission have their own
treasurers and disburse the funds Of diff
foient institutions. receiving vouchers
from the superintcndents. The accounts,
the witness said were audited b. heads
Of the various state departments. after
which the vouchers we're turned over to
the state Controller. This course is pro-
yided for in the various general laws az
fecting the departments.
Trustees Audit Payroll.
The trustees Of public buildings. said
Mr. Wendell. audit the payroll of the De
partment Of Public Buildings. tn. money
being sent in bulk by the Controller to
The Superintendent OF Public Buildings.
G. Gordon Reel Superintendent Of
Highways. testified that the work Of the
Highways Commission was held up
through the inability Of the Superintsn-
dent 81 Public Works and the State Engi-
uoer to attend any Of the meetings, This
testimony supports the recommendation OF
Governor Sulz-r for d sirrl.hraded High
WAYS Department.
IL also was brought ont thai the High
way Comm ssiou audited its own az
counts. and that the Controller turns over
the FUNDS FOR highways and repairs 90 the
various county tressuI.rs OIL the autho.i-
zation Of the Superintendent OF Highways
without audit The Controller has no
means Of knowing how THIS fund OF s.
20. IS, - spent
The STATE Controller j. the proper
auditing onicer ~ the state" said Chair
man Carlisle. and the committee viii
recommend legislation 20 invest him with
the brosdest powers Of audit. This Is
lccessary To bring about economy and
cfCicncy."
Governor Sulzer has appointed James
Cameron. % New York. a. chief invesu-
gator ,u connection with the Inquiry.
Nh Cameron has been engaged in lnvss-
legations In Hudson County, y. J.. and
had charge Of the investigation IN connsc-
ton vlr 'he building Of the capitol at
Harrisburg Penn. lie was recommended
hv Raymond u Fosdlck.
Demand for Return OF Arsenal Money.
A. a result OF the disclosures yesterday
concerning tho purchase OF prof erty In
this city by Adiutrnt General Nerbeck
for new arsenal, Deputy Attorney Cen
crai Parsons this afternoon sent de
nard to the First National and Exchange
banks Tor the return uf tie 'isols ". paid
for tia prorr'ty.
The investigating coumitt.. turned
over 10 the Attorney General to-day an
agreement between the First Nstionsl
Bsnk and General Nerbeck. which read.
Ia the event Of the failure or refusal OF
the aimory commission 10 complete the
contract for To sale Of the properly, l.
william Nctheck Brgsdier General. a.
Adiutsui General 81 th. state OF Ne"
York. do hereby agree with the First Ma
tiopal Bank 90 complete the same accord
inR 10 the terms ana provisions thereof
Public hearings will BE- resumed On
Tuesday.