The Birmingham age-herald., 1913-03-18
Public Examination Into
Affairs Will Be Conducted
by Examiners, Which
Will Begin Today
$4,000 RECEIVED
FROM CINCINNATI
UNACCOUNTED FOR
Various Banks Where Department
Kept Funds Will Be Examined
First-Rumored Officials of
the Convict Department
Might Be Indicted

Montgomery, March 17.-(5pecial)--.I
has been decided in view of the short
age in the convict department that full
and thorough investigation of this depart
ment will be had and thar at this inves-
tigation the representatives of the news
papers will be permitted to be present
and the fullest publicity thereby given" !"
The above statement marked the most
pronounced development of the last few
days of the painstaking investigation
which Governor O'Neal and other Off
Gals are making looking toward co n
piete examination of the administration
of the affairs of the convict department
The statement was authorized by Gov
ernor ONeal, who declared that the pub
lie examination will be conducted by the
chief examiner and the assistant exami-
rers of public accounts. the investigation
to begin at 10 o'clock tomorrow morning.
The decision of Governor O'Neal to take
the public into his confidence in the in
vestigation was reached Monday morn
Ing after a conference with Maj r.. lf.
Steiner, special counsel in the natter
Judge John Pelham, Attorney General
Robert c. Brickell. and other officials.
The executive statement continues.
This examination viii be conducted by
the chief examiner, aided by the assist
ant examir RS, and will be held in the
room of the state railroad commission.
commencing Tuesday morning. March Is,
at 10 o'clock a. m.
Under the law, the examiner has the
power to require the attendance of Wit
aesses and compel the giving OF testi-
tsasass ard productisn Of books and pa-
pers
THE governor intends to hasten this
hearing and purposes to give the exanii-
ner every assistance in his power and
the people the competest information'
Examination of Banks
Tho public investigation. which will be-
gin Tuesday morning. will first consist in
an examination of the various banks with
which the state convict department has
done business. The examination OF the
banks will be most complete, and thor
ough probe will be made into all deposits
made by officials of the convict depart
ment, whether these deposits were made
in banks Of Montgomery or in other
banks of the state II is anticipated that
the examination OF the banks will also i'm
cfude an investigation of the personal ne
ment. though the examination will consist
chiefly of an investigation Of those banks
with which the department did business.
Cancelled Checks Investigated
The investigation today hinged to
some extent upon the tracing of cer-
tain checks which had been received
by officials of the convict department
In payment of cotton which had been
shipped from Speigners. The statement
as rendered by the cotton mill at Speig-
ners showed that the shipment had
been made to well known Cincinnati
firm OF cotton brokers, and that the
amount of the sale was $4,000
This amount was the first shortage
that was reported to Governor O'Neal
The records of the convict department
showed no evidences of such a transact
tion, although the governor has re-
eeived cancelled checks from the Gin
cinnati firm for nearly the whole of
this amount.
1T is said that some of these checks
were deposited in banks outside of the
city of Montgomery, and while nothing
definite has been announced relative
to the name of the endorser it has
been intimated that probably Lacy did
not receive all of the money involved
oughly aired in the investigation to be
nnde. and it is expected that some sub
stantial developments may arise as a
result Of the enquiry.
Embezzlement Charges
There was some rumor in official
circles today to. the effect that officials
of the convict department might be in
dicted on enbezzlement charges, al
though not directly connected with the
recent defalcatiQps. This report gained
considerable headway during the day,
and a statute in the code was quoted
to show the law bearing upon the sub
ject of embezzlement by public officers.
The law in question provides that any
public official who deposits the states
money in bank must receive from
the bank sufficient security to secure
the payment of the funds deposited.
The law covering the subject Is as
follows:
ANY probate Judge clerk Of court
(COntinued Page Nine.)