Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1918-01-01
SNYDER SAYSHE
SHOULD AUDIT
Auditor General and InSur-
ance Fund Officers in Con-
troversy Near Showdown

Differences between Auditor Gen
eral Charles A. Snyder and the Off
GERS of the State Insurance Fund
over the Auditor Generals desire to
audit the fund to ascertain whether
it can be made self sustaining at
the present rate of expenditure for
administration will probably come
to q head here tomorrow. Attor-
ney General Brown has advised the
fund officers that the Auditor Gen
eral has no power to audit the fund
The Auditor General is studying the
laws relative to his powers and it i,
believed will send Miles A. Dawson
an insurance expert, to the office tc
audit the books.
No one of the principals in the
controversy is here to-day and i
could not be learned whether Mr.
Snyder or the fund officials woulC
go to court.
Mr.. Snyder set forth his position
in the following statement last
night:
TT was not my purpose to en-
barrass the State WorlImen's Insur-
ance Board, but to conserve and
protect the funds of a department OF
the state government for which
voted while a member of the State
Senate" said Auditor General Sny-
der yesterday. MY inquiry is also
based upon the proposition that the
head of the Compensation Board
while appearing before the Appro-
priation Committee at the last ses-
sion, and especially after inquiry
by both the chairmen of the Sen
ate and House Appropriation Com
mittees, Messrs. Buckman and
Woodward, absolutely and unquali-
fiedly agreed that if $4,000 were
appropriated in addition to $780,
600. which had been contributed at
the session of 1915, the compensa-
ton fund would be self-sustaining,
because no dividends would be de-
clared for the year 1917 and the
funds would be otherwise conserved
and efficiently managed. AS mat
ter of fact and in contravention of
his agreement, the board has during
the current month declared a divi-
dend of more than 100000, leading
to the reasonable conclusion that
the fund will not be self-sustaining
unless there is a radical change in
the management. Whether or not
it will be self-sustaining when the
present appropriation is expended
haustive audit, to which the man.
ager of the board has refused to con-
sent
"a careful analysis of the eXpen-
ditures of the fund chargeable to
the appropriation for organization
and maintenance shows that a def
cit in substantial amount will exist
at the end of the period for which
the appropriation was made. The
amount of the deficit cannot readily
be determined for the reason that the
penditures of the board have shown
regular and consistent increases from
month to month. Assuming, how
ever, that no such increases may be
anticipated in the future. although
they have occurred regularly in the
past. the deficit will amount to sub
stantially 100000. In making this
estimate no regard has been had to
the fact that some of the employees
have not been paid their December
salaries. If these salaries were taken
into account in arriving at the ex-
penditures of the board, the antici-
pated deficit would be considerably
greater than the figures mentioned
and if the recent rate of increase i'm
expenditures Is maintained, the def
cit will, of course, be proportionate-
ly greater.
The only purpose which actuated
me in the proposition to ascertain
the condition of the fund was to
make 1t sure protection of the elf.
liens of the commonwealth, and that
in order to carry this purpose into
effect, the department will insist on
a reduction in the payroll and other
expenditures, and a closer inspection
or the management"
In his interview the Auditor Cen
erai laid particular stress upon the
fact that he regretted the action of
the manager of the board i'm at
tempting to prevent an inspection Of
the records, as he feared IT might
cause an unjustified impression thar
would have an adverse effect unon
the policies issued by the board or
the solvency of the fund. which re.
main unquestioned.