davidaulloa/AmericanStories huggingface dataset:
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-08

laws of 1905 expressly provides that
"the auditor shall issue warrants on
the county treasurer in favor Of per
sons entitled thereto. in payment. of
claims and demands chargeable
against the .ceunty which have been
legally examined. allowed and ordered
paid by the board of supervisors. .
The warrants issued payable to the
order of this bank during the year
1912 and referred to above and cashed
by them. were therefore Illegally
drawn and issued. II is true that
they bear the statement "Appropria-
ton, Pay of Police" but as matter
o fact all the police appeared to have
been paid by individual warrants.
We then examined the register of
warrants back to the year 1905, when
county government commenced, for
items of a like nature. We found
OF fact all the police appeared to have
1912, there were warrants drawn I'M
der the appropriation "Pay of Police"
amounting to 81, 602.35 for which we
could find no au.nority.
On questioning the auditor regard
ing these; warrants he admitted that a
number of them, amounting to $27;-
1000, had been Illegally drawn, and
signed a statement as follows:
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-08

which they were chargeable, he
would pay them, although in some
cases not even endorsed by the payee.
Such procedure, of course, provided
no check on the acts of the auditor
Many warrants were paid without
endorsement.
We have therefore to report that
in our opinion there has been in
complete administration of the finan-
cial affairs of the county in the
treasurer's office in that the treasurer
paid warrants without investigating
to see if they were issued pursuant
to section Is, Act SO of the Session
Laws 1905. 1t may be that under the
law the treasurer's duty before cash
ing a warrant did not require him to
10 more than satisfy himself that the
warrant bore the name of the auditor
and the name of the appropriation
under which 1t was drawn but that
raises a question which we are not
qualified to answer.
We would point out that this re-
port is in the nature of an interim
report and we have no doubt that
there are many other cases in which
there may have been a MISUSE Of
county funds during the past eight
years which we have not been able
to discover owing to our not having
had time to make complete audit
Respectfully reported by
AUEIT COMPANY OF HAWAII,
{ Matt. VI. Graham, C.. A., Manager.
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-08

this 18th day of February, 1913.s
(Sgd) R. T. Forrest,
Notary Public. Fourth Judicial
Circuit. @.& "a I'll.
Findings Are Strong
A list of warrants which have been
drawn without authorization from
1907 to 1912 is appended to this re-
port.
We therefore report that we con-
slider there has been incorrect, in
complete and improper administration
of the financial affairs of the county
in the auditors office as is evidenced
by the following:
(First1 The books kept by the aud
itor are in such condition that no
correct statement of the financial
standing of the county .can be pre-
pared from them.
(Second) Receipts for payments
appearing by the books to have been
made, have not been obtained in many
cases, and pay rolls have been paid
although it is quite evident that the
signatures of the persons entitled to
the monies were all in the same
handwriting. !. g.. H.. -~s
(Third) The sworn statement of
the. auditor that he has used certain
warrants for purposes other than
county business. .......-
Treasurer. -. ~.
We found the books of the treas
urer neatly and correctly kept, and
the documents instructing his trans
actions fled in businesslike and
satisfactory manner. s..r
The system in use in the office of
the treasurer at present is as fol-
lows, viz: r.. ..:- .-%E.:. .~.
All money received on behalf of
the county is deposited by him with
the First Bank of Hilo, Ltd, to the
credit of the various funds under his
control, in the name of Chas. H.
Swain, treasurer Of the county of
Hawaii 49,. >.": 49,. -. -.
All warrants are redeemed by a
check drawn on one of the above
accounts. ... -. -@
The present treasurer came into
Office on January /, 1911, and he in
formed US that he has never been
furnished with any information from
the board of supervisors or from any
other source showing what ''claims
and demands chargeable against the
county which have been legally ex-
amined, allowed and ordered paid by
the board of supervisors; " that when
warrants on the county were present
ed to him for payment he had no
knowledge as to whether they were
legally drawn and issued or not, but
so long as they were signed by the
auditor or his deputy and bore on
,their face the appropriation against
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-08
CIVIC Expert Employed by the
Board of Trade Reported
on MiSmanagement

IT. G9odng Fields investigations
into the financial affairs of Hawaii
county kagan the series Of disclosures
eliminating in the report 20 the en4
ate this morning. He was eployed by
the Hilo Board of Trade to look into
the financial affairs and administra-
live methods of Hawaii county and
his report uncovered the SHORTAGES OF
Rufus LYMAN, which sent the license
commissioner to prison for three
years. ana further let in the light on
the looseness Of county financial man.
2sem5nt
Eietd Drew Attention - Important
Point.
In this connection. it Is remembered
that Mr.. Field. in his report to the
Hilo Board of Trade, dated August 5,
1912. sta ed:
The making of advances on the
anticipated wages accruing to subordi.
nate public employees OF the county of
Hawaii by the First Bank of Hilo,
Ltd. on the guarantee or indorse-
ment of their suDeriors in office Is a
practice. although not general one,
which should be discontinued. All
though the act in itself may he COM
mendable one. in that it relieves ur-
gent necessities, vet after the adj
vince has been made. the temptation
]. to exact usury is always present.,
Elsewhere he stated:
Regarding. undue authorizations. it
is not sound financial nolicy. as is the
case at present. to place on file au-
thorizations for future transfers, to
special approximations from the gen
eral and other funds. for which mon
5eys are not available for the full
amount. Appropriations which read,
When funds are available should be
discontinued. as they admit OF too
much uncertainty in making transfers.
The discretionary powers as to. the
exact time for making these trantfers
should not rest with the county an,
;di or" az
). Further. he stated: t,.a
~ "The county treasurer should be in
A position at Ill times to ascertain
the exact financial status of the com
Ny of Hawaii. This is not the casesa
!, Again: sts
s'The general and special arpropria
lion accounts kent by the county au-
Guor. had never heep audited and the
balances as reported to the hoard OF
superyiso rs from time to time bad
never been verified altheugh the sam
have been accepted as trne balances.
1.-THE present .municipal county sYs'
tenn of the, county of Hawaii IS not
! eonstructed on Sound .principles lof
public ACCOUNTING. and SO long as the
above Irregularities are permitted
there is every opportunity for them
To ripen into actual abuses" al
lit is impossible to state with any
degree of accuracy whether the ac-
counts of the county of Hawaii fnlly
and fairly disclose the position of its
affairs or in what resreet thew fail
to. do so. "A. mere SWIMMING Of the
financial affairs of the county Of Ha
wall viii not suffice. se
In his address read before the CIVIC
Convention at Hilo, last SeRtember,
Mr.. Field drew attention under the
subject of Practical Reforms in the
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-08
INVITATION TO VISIT
HILO is ACCEPTED

Just after adjournment of the SEN
ate this morning a letter was receiv-
ed from the Hilo board of trade, for
mally inviting the senators to visit
its town as the guest of the board OF
trade.
News that such an invitation was to
be extended had reached the senate
several days ago, when it was gen
orally agreed that the invitation should
be accepted.
President Knudsen called the mem
;bers together when the letter reach
ed him, a vote was taken and the in
vitation accepted. The senators will
leave March 18th, returning the 18th.
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-08

"Due to the complicated nature Of
appropriations and the exceptional IL
eense generally allowed in the matter
Of transfers, the opportunities for COW
sering up defaleations are far more
numerous IN municipal bookkeeping
than that of any other system. This
condition is well understood In the
highest accounting circles, and the
science of municipal accounts has now
become a distinct branch Of that pro-
fession. Not only ls an intimate
knowledge OF the principles and fun
damentals of public accounts abso-
Iutely necessary to properly conduct
this class Of audit. but the exanina-
ton should be made by strictly non
partisan experts. Recent developments
In the County Of Hawaii have made
Il Imperative that the closest possl-
Bile scrutiny should be. made Of the
books OF all departments Of our gov.
eminent by periodical audits, and con-
Quoted along the lines now recon-
mended.
ain order. therefore, to fuenlsh an
absolute check on our public book
keeping, and to secure adequate pub
liclty for taxation, appropriations and
expenditure, a law should be passed
by the next Legislature authorizing
the establishment OF Territorial Blu
reau OF ADULTS and Municipal Stats
tics, the members Of which to be ap-
pointed BY the Governor Apart from
the bureau being a clearing house for
all information on matters Of Terri
torial and county finance, its functions
should include:
1. Conducting periodical audits OF
the Territorial and county books. and
certifying to the correctness OF the
same; -
q Preparing, at regular intervals.
systematic and comparative reports OF
the financial activities OF both the
Territory and the counties.
These.reports to set forth with suf-
ficient fulness and detail the classes
of financial facts relating to the vari-
Gus branches and departments OF our
system or government
8. Remodelling the present ac-
counting system, looking to the intro
duction of business methods about
much-needed economies. and
4. Formulating methods for making
periodical budgets, which will show
clearly for what purposes money Is
requested, and appropriations that
state with equal clearness for what
money is used.
Publicity of budget estimates has
always been, found to be the prelude
to good government, and by supple
menting these estimates with graphic
charts, which would be included IN
the present plan, the relative eflci-
ency of each county and each depart
ment of the Territory and the eounr
ties, would be readily understood By
the taxpayer. Civic improvements re-
fleet themselves IN budget gains.
Likewise budget improvements reflect
themselves in departmental manage
ment.
The sphere of usefulness of such q
Territorial Bureau Of ADULTS might be
extended TO the examination OF bal
ance sheets of the Territorial public
service, quasi-public and industrial
corporations. Such statements are
now filed with the Territorial Trea-
surer for purposes Of taxation, but no
| systematic check is made to verify the
! figures submitted in the respective
capital accounts"
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-08

them. A copy OF this letter to the
bAard OF supervisors Is hereto at
tached and marked Exhibit e." ~
Within the short time at its dis
posal the audit company fouSd 1t
impossible to make a detailed audit
of the county books in Hilo. The
report of the company to the commit
tee is hereto appended and marked
Exhibit "F''
- will appear from a study OF this
report that an investigation of county
affairs on the island of Hawaii
should be made to cover the years
1907 to 1910 inclusive. :.
Your committee recommends that a
copy Of Part l of Exhibit e. be
transmitted at once to the attorney
general as the matters therein set
forth come peculiarly within his ju-
risdiction and that Part ii thereof,
when submitted. lie referred to the
Judiciary committee for the considera-
ton of that committee Part ii will
contain recommendation for amend.
ments to the county act, which should
be carefully considered, as any such
amendment would affect all the count.
les other than the city and county of
Honolulu. The object sought to be
attained by these amendments is to
make impossible recurrence of the
matters referred to in Part of the
report.
Part II of the report of the audit
company Will be ready for presenta-
ton to the senate Monday morning,
March TO-
Respectfully submitted,
ALBERT F. JUDD,
Chairman.
CECIL BROWN,
PHILIP PAIL,
Aold-over Committee on Ways and
Means of the Senate OF 1911.
Honolulu, T. H..
March s, 1913.
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-08
COMMERCIAL NOTES

Provisional statistics recently pub
iished by the Imperial Statistical Of
flee show that the total volume of
The foreign trade of Germany, includ-
ing precious metals. increased in
value from Si,339, 14S,000 IN 1911 to
4,6S9, 623 600 in 1912 Both in value
and in volume Germany's foreign
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-08

county employees whose salaries were
discounted by us and which were
paid back to us by, county warrants
issued and referred to in your letter
of 18th inst.
In reply we beg to state that we
have to decline to give YOU the names
of the employees referred to, as ii
would make public private business
transactions between our clients and
ourselves.
Yours truly,
1-.~ The First Bank of Hilo, Ltd.
(Signed) Per II. V. Patten,
J.. Cashier.
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-08

trade in 1912 exceeded that OF all
previous years.
Total exports Of coffee from Mara
caibo,. Venezuela, for the year 1872
were n, 457,942 pounds, against an an
nual average of 53,130,32s pounds for
the preceding ten years. Exports
to the United States last year were
5O,273,SSS pounds. The stock on hand
In Maracaibo at the end OF the year
was about twenty million pounds
Consul John A. Ray says that reports
from all parts of the coffee district
indicate that great efforts have been
put forth to increase the coffee
bearing area. Reliable estimates OF
the increase are lacking.
The Tacoma Ledger finds an oppor
tunity for showing the activity of the
Hawaii Promotion Committee by re-
printing a report of the address deliy-
cred before that body by E. J. Walsh
of Walsh and Gardner. Tacoma, in
GLIDING the portion containing Mr..
Walsh's valuable advice to the COM
mittee. The article concludes: "Ac.
cording to the report Mr.. Walsh ar
rived in Honolulu nervous wreck,
bat has since been restored To health
and now swims along the breakers off
Waikiki with the best OF Hawaiian
swimmers, and glories in the climate.
Importations of bananas into the
United States for the fiscal year end
ed June 30. 1912. were Of the value
Ct s14, 26S,3 $50. Thee figures indicate
an increase of 33.4 per cent in the last
two years, and of IA per cent in
twelve years The value placed on
last years imports as above stated Is
based on a price of only 81 cents a
bunch. The profit there is in the
trade pay be figured roughly by TAX.
ing note of the fact that bananas sell
at retail in this market at an average
of about 30 cents dozen. An aver
age of 40 bananas to a bunch would
thus mean that bunch which cost y
cents is sold at retail in the United
States for about 220 bunch, which
is sufficient. it is claimed. to give
liberal profit. after allowing for all
necessary cost of production. labor.
Transportation, etc The annual eS-
port of bananas to all countries aggre-
gates about 52.936. 9e3 lunches, Of
which the United States took the very
large proportion of 44.520,5SS lunches.
making this the greatest banana eat
ing country in the world.
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-08
What Does This Mean?


In connection with this subject it is
important to state that we have found
that each county empioye whose
salary has been passed by the board
of supervisors, during the year 1912
has had an individual warrant issued
to him for his salary. What employees
salaries are then referred to by the
First Bank of Hilo, Ltd, in their letter
of 18th, February? The refusal of the
bank to inform us whose salaries were
assigned to them made it impossible
for us to follow up this matter further.
Section Is, Act 80, of the Session
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-08

A bill has been introduced into the
Indiana legislature making "On the
Banks of the Wabash the Hoosier
state song.
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-08

, ness during the years 1910, 1911 and
1872 ... ...s
| (Sgd)> =. G. K Mcguire
Subscribed and sworn to before m
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-08

The list of warrants on this and the
preceding page constitutes the war
rants Illegally drawn and used by me
for purposes other than county bust
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-08

Will you explain TO us, as auditors,
of the books of the coun;y or Hawaii.
appointed by the Senate Hold Over
Committee on Ways and Means for
what purpose the money was paid to
YOU.
Yours very truly,
(Sgd.) AUDIT CO. OF HAWAII,
Matt NJ Graham, G. A., Mgr,
Hilo, Hawaii, Feb. IS, 1913.
Audit Company of Hawaii, Matt. M.
Graham, c. A., Manager, Hilo, T.
II,
Dear Sir: beg to acknowledge re-
ceipt of yours of the 18th inst. asking
for what purpose the following treas.
ury warrants were paid over to the
bank, namely: Jan. Il, 1912 war
rant 1871 for $1,245; Feb. Is, 1912,
warrant 23R for $50; Apr. 16, 1912,
warrant 1920 for $3.50; June 4, 1912,
warrant 1886 for $3.50; June IA, 1912,
warrant 3S47 for 1925. .... -.
In reply l beg to state that these
warrants were turned over to this
bank in payments of advances made
to county employees on account of
their salaries. .-- T.. .
Yours very truly,
(Signed) H. V. .PATTEN,
s.,~ Cashier.
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-08

Hilo, Hawaii, Feb. 10, 1913.
Messrs. The First Bank of Hilo, Ltd,
Hilo. ....r H..
Dear Sirs: We are in receipt of
your letter of 18th inst. and note that
the warrants as detailed in our let,
ter of 18th inst. were in payment of
advances made to county employees on
account of their services.
Will you please give us the name
of these employees and the amounts
advanced to each. g.. ..
Yours very truly,
AUDIT COMPANY OF HAWAII
(Signed) Matt. NJ. Graham, c. A.
Manager.
Hpo, Hawaii, Feb 10, 1913.
Mr.. NJ NJ Graham, c.. A, Manager,
Audia Co. of Hawaii, Hilo, T. H. "
Dear Sir: We beg to acknowledge
receipt of yours of even date re-
.Questing us to give you the names Of
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-08

Continues from Page -
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-08

trade in 1912 exceeded that OF all
previous years.
Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-08

Honolulu, T. H.
March s, 1913.
The evening world., 1913-01-08
SHERIFF W|THDRAWS
HIS DEPUTIES FROM
P!(LYcINc HOSPITAL
--s
Compromise Arranged in Law
suit Which Results in
Issuing Of Attachment.

sheriff JuI1ss ssaseurssr to-day with
drew hss men from the New Yor, Poly
clinic 1Ssdicai School and Hospstai He
srved an attachment on the personal
propsrty a the institution yssssrday.
and had Ne men IN charge Of The hos
pitai snd the am6ulances. The Shei1M
prevented interference with the oonduct
Of ths hospital, ana no one we better
pleased than he whsn all pastiss to the
troubis tot together and made IN ar
rangsOent which will probahly lead 10
Q settlement Of The suit Of Samuel
RcsofR, who had the contract for max.
ing the excavation for the hospital
buiiding. Mr.. Rosoff claimed that ~, Oh
we're due him. He assigned his claAm q
Nathan J. and Moses N. Packard. who
brought s,Ht and secured judgment
against the hospits, for uA606.
The trustees 0f the institution de-
clared they would not pay the judgment
and would appeal Pending c0mpromial
or Appeal. the Packard attorney tool
out the writ Of attAchment The lawyer
on both sides got together and ~ !
result Of their conference the 0herie
was instructed TO withdraw his deputies
President Wyeth issued . statement Ia
regard to the law suit
Contractor Rosoff kept his work be-
hind 20 that We were delayed AVE-
months in the construction Of the build
Ing" he said. '.rhis meant delay 4
other contractors. 20 that We wsr'
really out ek.oO. Mr.. Roso6 included I
The evening world., 1913-01-08

lot q extra work N Ms demand and Ns
would not allow u.
''ft was at the request Of the city that
We engaged 10 put up our hospital.
From is07, when the Roosevelt Hcspltal
discontinucd Ns ambulance service. un-
III 1919 patients on the west eide had 70
he taken acrues Manhattan Island 10
the rower Hospital In one day. We
Fcrty.secoAd street 10 Ninety -xecond
and from Eighth avenue "a the North
River. The Board Of Estimste and Ap-
portlonanent estimated that our ambu-
lance service would cost es7seoo year.
but. Notwithstanding, We are receiving
only $500 year. We must look 70 the
public to help u.s."
The evening world., 1913-01-08
1F[fENiODUNCt
'.0vs|lERnANSA)Rs
''lRNYM0RGAMzANoN
hethble Conference in Wash
ington on Order of War
Secretary Stimson.

NAmnN0rON. Jan. s.--0athsred ct
- War nspartment today By spsslal
~ Of secretary stimson were most
p3hs arHty ofacers in sctuai general
1nasd. with the exception Of the
~ IN the philippines. for . ronferencs
w3llch y expected to have important re-
gnlos In ainpdng the future orsanisa-
tleA Of the azmy. The movement began
lAse summer when after a year's hsrA
werk the war college evolved . most
eooeorate scheme of reorganization Of
NE military forces With the purpose Of
6rinsins thcse up TO the modern stan
oards.
u was arranged that the command
ias generals should meet to-day. after
ehey had thoroughly prepared them
salves by q careful study of the report.
q. consider 1t. with a Wow to, framing
dsSfts Of bills. and outlining executive
orders to pot Into practical operation
~ features
= sAmong the topics for consideration
vore the general relation between the
Mnd forces at home and abroad: the
tFAditional military policy, Of the
&Us9u St~tes. the JOHN ubo OF reBuial
and citizen soldiery; the time required
- raise armies; the distribution OF thu
mobile army and plan Of tactica,
organization and administration adapt
- 70 the present dispersion Of tn,
n4obus army. er
Incidentally. thsre was involved suci
topics a. the reserve system. the or
sanitation Of skeleton field army. snt
the frequently discussed Council o.
National Dsfensss' which has been y
strongly but unsuccessfully pressed II
cSpgress.
AsAmong the ofncers present wer
1&Hps. Murray, Carter. Maus, Frsdericl
:. n Smith, Edwards, Wotherspoon
Nils. Evans, Mcclernand. Macomt
's1QRry. Bliss and Schuyler. Il n ex
Dootsd that the conference will sxtsn,
The evening world., 1913-01-08

Imprisonsd them.
Broken slass In the car cut fasnsnuei
scuweins. whp has an ollce IN the
building and isses In 0rSntwoods n. j.
on his left arm. and he dssmsd u wiss
to 20 10 the Hudsou street Hospttal To
have the wound dressed. .. q. ciarh
and ID. G. psach. boeh sf No. - Thomas
street. received minor scalp wounds
from the nying glass. and inward Mie-
dleton. opssater of the car. who lives
In Long Island cry. mad hia les
bruised. None Of these wsat to tos.
pital. - tsll.E ~
The eas had just started co. descend
from the fourth moor OF the six.story
building when belt on the sasine IN
the basement broke. immediately the
car dropped. SAFETY clutches failed %
work. and the car fell 70 the bottom
Of the shaft. ~,