The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1917-07-17
's2,469.72IN.
INTEREST IS.
GRABBED BY
TREASURES
Accountants Bare Sys-
tenn of "Pickings" In
Report To Green
TELL METHODS
OF CLERK KLOKA
Mortgage Tax Records
Mutilated and Re-
ceipts Altered

lrNtniAr vi NV ~ hC AVahAf y -
defrsuded OF money paid into tn
treasury by taxpayers was divulgeS
Monday by Treasurer William "
Green, Jr., when he made public th'
report OF Price, Warehouse a. Com
pany. accountants. who made Z
cursory examination OF the records
OF the treasurers once for the year
ending June 80, 1917.
The report summarizes the irregu
Iarities In the accounts OF Anthony
J. Kloka, former mortgage tax clerk
IN the trsasurer's Office. for whom
q warrant charging embezzlement
has been issued IL also tabulates
sums aggregating s2.4se.72. paid 70
former Treasurers Edward r. Stein
and John r. w. vergouw as inter
est on mortgage and bond taxes and
liquor payments. and not credited
70 the county or state.
The ex-treasurers declare that II
has been q custom OF many years
standing 10 take the interest money
on bond and mortgage taxes. be
law expressly stipulating that II
should be turned into the county or
state treasury. which divide the
taxes equally. They also say the
practice applied 10 interest on liquor
license payments.
Concerning the mortgage and
bond tax interests the report states
IN part:
I'm connection with the e1amina-
ton OF the bank accounts We wish
10 call your attention 70 the pro
vision OF the law relating 10 the &C.
counting for funds collected in re-
spect TO mortgage and bond taxes
The taxes collected each month
should be transferred, one-half 10 the
state treasurer and onehalf 10 the
county treasurer on the first day
Of the succeeding month In a num-
Der of cases during the year ending
June 80, 1917, the transfer OF funds
was not made until some time after
the date provided by law. In one
case the transfer was not made un-
I'll the twenty-fifth day of the fol-
lowing month. One example Of this
VIII be found in the month OF May,
1917. when the taxes collected in
April were not transferred until
May TO-"
The various ways In which the
county treasury records OF the mort
gage tar clerk were debauched cover
q wide range in the report. Not
only were pages torn out OF the
books, but In one instance az least
the report indicates that page is
missing.
These conditions have served as
foundation for the report that
Kioka's known shortage is now
about $4,000 and that a deficit of
about 100000 will be shown before
the last tangle Is Strengthened out
Another statement in the report
n that receipts stamped and coun-
tersigned by the county auditors
have afterwards been changed 10
correspond with the actual amount
Of the tar.
Following IL the report concern
ing Koka's accounts:
During our brief examination OF
the records OF the mortgage tax clerk
the following Irregularities were no.
(a) Pages a. TO so, both inciu-
siye. In book 10 OF the mortgage
tax collection book. had been
torn from the book and pages 1871
TO 400 from the back OF the hook
have been substituted therefor.
and collections entered thereon.
Pages 81 20 80 were found in the
office and contained the details
OF taxes collected from the Room
ey Land company on account Of
land contracts. We have not yet
seen any entry for the amount
ey Land company.
(h) Page No. 1876 was also torn
from the book and another sheet.
No. $50. apparently taken from
some other book. substituted
therefor. Page No. isb was not
seen by us.
fc) The duplicate carbon copy
OF the receipt for mortgage taxes
collected In at least one instance
does not correspond with the
amount OF taxes stated 20 have
been collected, as shown by the
tar collection book.
cd Instances have been dis
covered OF receipts made out for
the tax actually accounted for
to the county upon q specific bond
and these receipts. after being
stamped as countersigned by the
board OF county auditors. have
been subsequently changed TO
correspond with the actual
amount OF the tax thereon, the
latter being higher figure than
the amount turned in.
te) Receipts have been made
out. but not actually handed 20
the taxpayers for taxes on bonds.
the receipts showing the face
value of the bond at a lesser
amount than the actual face
value thereof and the tax sc-
counted for TO the county treas
ursr was. therefor. less than that
actually collected.