The Oroville weekly gazette. [volume] (Oroville, Wash.) 1905-19??, 1916-05-19
A SIGNED STATEMENT.

Having been notified by the governor
| that he will appoint a new Industrial IN
surance commission to succeed the pres
| ent one. in view of the press accounts Ioi
/ the past several months, and the recent
PARTICLES stating that We had done nothiils
/ to respond to the governors wishes TO re-
organize the department to provide
against the recurrence-We wish to SUD
NIT the following statement:
We recognize. without any reservation
the right of the governor to remove any
appointee whenever in his Judgment IL
will benefit himself. the party or the de-
partment. This is a condition attached 10
political office.
1t is deeply regretted by us that a de-
falcation occurred in our department. MOI
desiring to make changes for political
reasons, many of the former employees
were retained. Glllies installed the claim
department was chief claim agent whefl
the present commissioners took office lie
was efficient-we did not know he was
dishonest. He forged and passed some
the department, tried and convicted in
two trials. No other employe of the office
was in any way implicated
There Is no more reason to hold the
governor or the commission responsible
for Gillies than Mr.. Farrell or Mr.. Ford
should be for Cline. Nor was Mr.. Clausen.
state auditor and chief inspector of the
state bureau of inspection and supervis-
ion of public offices held responsible for
fraudulent claims paid by him for Ortis
Hamilton, amounting to $50 900. 90. He was
large proportions can do other than trust
employees Any bank does it,
II trusting the head of department
constitutes '.laxity'. we may be charged
with that. We had continued the system
installed by our predecessors with minor
changes for higher efficiency a system
built on the theory that employees were
honest This proved ineffective for a dis
honest employe.
Since January l. 1916. the claim depart
ment has been thoroughly reorganzed. a
more complete checking system installed.
y fraudulent claim or transaction cannot
now be put through without collision OF
several employees. Plans and forms for i'm
proving the bookkeeping methods in the
auditing department have been agreed up
on between our department and the state
bureau of inspection. These have been in
the hands of the governor for his approval,
for the past two months.
The present commissioners have collect
ed more than 81, 800 900 and paid out in
claims and pensions 81, 400, 900. In thi.
same period 46.747 claims have passed
through the department. Is of these were
fraudulent.
We have from fifty to sixty employees il
| the Olympia office. branch offices anc
travelling over the state. In comparison W,
have very few complaints. The amount o
fraudulent claims amount to less than one
t nali OF one per cent; We doubt wheteh
amount OF business that does not lose THU
much through fraud.
We have requested the attorney genera
to-, 10 pass hS on the s question Of the LIABILITY
rants. There never has been any question
OF bank liability on smaller warrant
fraudulenty cashed. The commissions r
see no difference in the Gillies warrant
and fully believe all the money can b
returned to the accident fund upon .prope
procedure.
Our idea of the workmen's compensate
law is that it is for the protection of tn
injured workman with proper safeguard
to the employers contributing. The de
lpartment should not install so much IRE
tape" as to keep the injured man out Q
his relief at the time he needs it.
| We retire with the firm conviction tina
We have given the department conscien
tious and efficient service and a desire t
do our full duty. We leave our successor
a we'll organized department and an eff
Icient force of employees the equal of an
with private corporation or public insti
tuition.
FLOYD L. DAGGETT. Chairman
CLARENCE PARKER. Comm'r.
A. b. ERNST. Comm'r.