Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1917-08-08
SUPERVISORS CRITICIZE METH.
DDS or c. D. ELLIS, IOWA
ACCOUNTANT.
FAILED TO REPORT HosMER
shoRTAeE BACK in 1915
County Auditor, Now in Hospital For
Insane At Cherokee, Spent county's
Money Frssly-eousht Automobile
For Woman Whom He Admired
Wife in Destitute Circumstances.

Sioux City, Aug. s.--A detailed ac-
count Of the populations Of former
County Auditor e. e. Hosmer, now
confined in the state hospital for in
zane at Cherokee, was made to the
board Of supervisors yesterday by H.
D. Rosenkrans, state examiner. who
4 has been working on the former au-
ditor's books for the past month. Mr.
Hosmers defalcations amount to ST.
1858, which includes salary overdrafts
and shortages in nearly every fund
which came under the supervision OF
the auditor. OF this amount, Mr.. Hos
mer made up the salary overdraft,
which was $7,766.so.
Mr.. RosenkranS report covers the
entire period Of Mr.. Hosmer's incum-
bency as county auditor from Jan l.
1907, to June 80, 1917. when the audit
or was adjudged insane and commit
ted to the state hospital
The report purports to show that the
FORMER auditor commenced to use
county funds for his own use in 1913.
His REGULATIONS gradually increased in
amounts until the board of supervisors
employed Maurice FitzGibbon in June
to CHECK his accounts.
Was Short in 1915.
M. Rosenkrans' repor. discloses that
Hosmer was short over $40 900 in 1916.
when State Examiner C. B. Ellis
checked the Office for 1915 he failed q
report these shortages to the board.
One item in the defalcation amounted
to IS, 900, the proceeds of certified
check deposited by James F. Toy at
the time the board sold the old court
house Site Mr.. Hosmer diverted this
5000 to his own use from the date Of
its receipt on May 10, 1915, until Feb.
Ia. 1916, when the second installment
on. the bid was paid, according to the
report
The report of the state examiner re-
lates how Mr.. Hosmer gave w. h.
Bastian warrants in payment Of print
Ing before the goods were delivered.
Some Of the books which were ordered
and paid for by Hcsmer have not been
delivered yet, Mr.. Rosenkrans reports.
Regarding the Bastian warrants, the
report says:
Says Bastian Got 1852.
TT seems to have been quite COM
mon practice OF the auditor to issue
-%:S17saats IN favor ot the w. H. Bastian
company when that company had Sc
cured an order for printing or the fur
nishing Of supplies and prior to the
delivery of the goods and acceptance
ofthe same and also prior to the claim
having been presented to and allowed
by tine board Of supervisors and even
prior to the makingaof the goods or the
fling Of the claim
..sHoweyer, warrants issued on
the county fund for which no goods
have been delivered and no services
rendered, In go far as your examiners
could determine, and for which no
claims had been allowed by the super
yisore, and for which no claims in fact
had been filed, amount to $352.75.
.sMr. Bastian informed us that there
was absolutely no intent to defraud
and that the county would in no wise
/ be at loss in consequence of the con-
4htion He. further stated that he was
hot. aware Of the fact that Mr.. Hosmer
Mas acting without warrant Of statute
III issuing the said warrant He fur
ther stated that most Of the goods.
bocke) were either completed or near
~ So and that he would complete his
part OF the contract without unreason.
able delay. Since that time Mr.. Bas-
tian has delivered part Of the goods"
Chief Wall Present.
j. F. Wall, Of Des Moines. head Of
the state department Of accounting.
was present at the board meeting
when Mr.. Rosenkrans' report was
made. Mr.. Wall and the board dis
cussed the conditions Of the office. His
recommendations for the handling of
the affairs Of the office were embodied
in Mr.. Rosenkrans' report.
That the former auditor diverted
nearly every penny OF public funds to
his own use was disclosed by the ex-
aminers report. Checks for costly
gifts bestowed upon Mr.. Hosmer's wo-
men friends were drawn against the
redemption and gopher funds. it is al
legged. Two checks in payment for an
automobile given to Mrs. Camille
straub were drawn by Mr.. Hosmer on
the redemption fund.
Board Becomes caustie.
Board members were caustic in their
comment yesterday upon the attitude
taken in 1916 when the books were
checked and reported in good condition
by Examiner Ellis.
III we had known the true state OF
affairs then the county would not be.
out this large sum Of money now"
Henry Metz, city member Of the board,
declared. THE board did not receive
the least inkling In the report filed
then to give us this information"
Hosmer was bonded by the Southern
Surety Company for $4,000. The board
Instructed Acting Auditor Ehlers to
make demand upon the company for
the shortage. i
Bending Company to Pay.
Arepresentative Of the company at
tsnded the reading Of the report and
declared the bonding company will
make settlement.
A question arose during the meeting
/ Of the board in regard to the state
hunting license money, amounting to
nearly $4,000, which Mr.. Hosmer is al
Keyed to have appropriated. The money
II handled by the auditor as agent for
\ the state, and not the county, board
members contend. The state may be
required to make demand upon the
bondsmen for this amount.
IN June an investigation was made
! by the county supervisors and it was
found that the auditors books were
NOT correct. Maurice FitzGdbbon, an
expert accountant, was employed to go
ovpf the books and he found many in.
accuraciee. Hosmer was then. called
I to account and he made up shortage