The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-08-13
GRAHAM SCANDAL
CAUSES COMMENT
''HOw Could it Have Hap
pened?" Question FIRE.
quently Heard
ATTORNEY GENERAL
is INVESTIGATING
Story, Minus Particulars, First Brought
to His Attention by Bank Commis-
sioner Last May-Statute Defines
Duties of Officers Connected.

The story in yesterdays Reformer
concerning the shortage in the accounts
of the state auditor office during its
administration by Horace F. Graham,
at present governor of Vermont, shared
in public interest with the war news
and was the topic of much converse
tion on the street yesterday afternoon
and this morning. Everywhere were
heard expressions of regret that Gov
ernor Graham himself and the state as
a whole shold have been revealed in
such an unenviable light.
Chow could it have happened?"
was the question most often heard in
connection with the subject. Persons
more or less familiar with the states
method of accounting seemed at a loss
to understand how it could have been
possible for one public official to have
steadily overdrawn his account, as it
is claimed the state auditor did for a
period of. Is years, without the proceed
ure being discovered
In response to numerous inquiries it
may be said that it is the duty of
| the bank commissioner to make an an
nual examination of the auditor S
| books. The present commissioner,
Frank G. Williams of Newport, claims,
/ it is understood, that there was no ex-
animation of the auditors books in
| 1917 ON account of the epidemic of in
| fantile paralysis, but that he made an
examination of the books and accounts
in March of this year and discovered
an entry of about $3,700 which had
been made since his previous examina-
tion in September, 1916 and for which
there were no vouchers. Mr.. Williams
1T is said, became satisfied that there
was something irregular about it, and
therefore made an extended examina
tion with the result that he found en-
tries of the same general character
running back to 1902, some of which
Iproper expenditures of the state
funds. He then notified the attorney
general, treasurer and the governo
himself. In the meantime, the stor,
goes, he received assurances that tn,
shortage would be made up and sine,
then about $4,000 has been paid int,
the treasury to cover part of the def
cheney.
When asked yesterday afternoon i
he had received notification of the al
legged Irregularities Attorney Genera
Herbert G.. Barber of this town said
"'The claim that there was shortag
in the accounts of the state auditor
: office during the administration of Hor
ace F. Graham was made to me b,
Bank Commissioner Williams abou
. Nav /, but no particulars were ful
nished. | at once began an investiga
tion, subsequently asking the commits
sioner to furnish me with full infor
nation concerning the. alleged short
lage. That investigation is still unde
$ way y
This statement coupled with the re
lported date of the discovery of tn
alleged Irregularities by the bank com
! missioner would seem to indicate tina
Ialthough he had held office since 100
: and had made annual examinations @
: the auditor s books with the exceptio
lof 1917, nothing out of the way cam
!. to his attention until this spring fo
! all that the unaccounted- for items dat
4 back to the biennial period of 1902-4
t As to the responsibility of othe
n lstate officers in the matter attention
n called to section 500, General Laws {
t 1917, which provides that the auditt
|. "shall notify the attorney general {
IS claims of the state which should |
d prosecuted and require said attorne
t, general to keep a particular recol
thereof and of the proceedings therei
t and to report to him concerning ii
o same when the interests of the sta
lrequire. -