Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1919-01-09
WILLIAMS FIRST
SUSPICIOUS IN 10
Bank Commissioner Testifies
Graham's Accounts Attracted
No Notice Until Then
HE NOTIFIED GOVERNOR
Governor, williams Testifes, Said Miss
Ing vouchers Were At the state
Treasurer's once and At His Home

!
, malfeasance in office. testified in his own
behalf Saturday. His statements were
to the effect that he had exercised the
diligence and care of prudent business
man in the performance Of the duties or
his office, which include an examination
Of the State auditors accounts and
which, In the case on trial. are being
Investigated as they relate to the discov-
cry and report thereon OF alleged I'M
vouchered balances drawn to the order
of Gov. Horace F. Graham during the
years he was State auditor.
Mr.. Williams testified that It was not
until March, 1915 that he suspected any
thing was wrong with the Graham
account in the auditors office; that he
had treated that account like any other
accounts in the office; that he had be-
lieved until last March that Mr.. Graham
was an honest and truthful man; that
1t was common custom for the audi
tor to make large advances to the heads
of the State departments which showed
the lax method of handling the State
work and which It was stated would be
shown has continued until the present
regime.
Mr.. Williams opened his testimony by
telling Of his history of his business life,
ing of the different work he did. includ-
ing the study of law at Coventry and
then later moving to Newport; how he
was admitted TO the bar and finally ap-
pointed bank commissioner which work
he has conducted since 1908. He then
told the details of his work showing
how little time could be spared to
the auditing Of the office mentioned
from the time required to do the work
in his own department and for which
the State provides no salary. He brought
out the point he has often made, that
more help should be provided for the
auditing of the office because the work
has grown as the States business system
has increased.
The State made an effort to stop this
evidence. but the court held that the
respondent had a right to show that he
has made a conscientious effort to dc
the work. Having shown these facts, the
commissioner then told the manner in
which he made the examinations. He
said he had used the day book and files
in checking during the first two years
treating Graham's account like any other
He agreed with Deputy j. E. Joslyn rela'
tive to his attention being called to the
shortage Of the vouchers in 1912 and
|
tention. Graham furnished the vouchers
during the coming period, 30 that in 1915
they were all there except one for s102.7 Is
which appeared a little later. He testi.
fed that in 1914 all the vouchers appeared
| although they were delayed some ir
, being filed. He said 1t was known money
was advanced to the other State depart
ments and that it required quite Length
of time to get vouchers back into the
office sometimes. These are the itemizet
! vouchers, he explained. He always
] found departmental vouchers in the office
| for Graham's, as we'll as the heads OF
the other departments in the State, anC
these in a general way showed for wha'
purpose the money was to be used. AL
the temized vouchers did was to show
in what division Of the department from
which the receipt was taken the money
was expended. He testified that all OF
the vouchers for the period ending June
80 1916. showed up. although perhaps
| somewhat delayed. He testified that each
| time he called Graham's attention to the
missing itemized vouchers the same ap
| peared in due course of time.
Mr.. Williams explained the manner ir
which he checked the accounts to show
that the money was properly expended
showing that he checked the itemizet
vouchers with the receipts, which showed
the missing ones, and that he kept a lis
of these until all appeared. He theT
passed down through the different peri
DDS, telling the jury how the work pro
| crossed. He said that his report. which
was read to the jury by the State fol
} the period ending in 1870 was as HI
found conditions at that time and tina
the reports of the following years Sc
forth the way he found things during
: those periods.
He said that his first intimation o.
anything wrong occurred was when Au
ditor Gates came into the vault where
he and Joselyn were talking and at tina
time he had found a shortage charged
against Mr.. Gates's account in red ink
} and that he asked Mr. Gates about it
1t was explained that it was a balanc,
that came over from the Graham &C
count. He asked Mr.. Gates If he ha,
talked of the matter with Graham ant
Gates told him he had not but 1t hat
} kept him (Gates) awake nights thinkln,
about It; that he (Gates) had talked tn
, matter over with friends of the Governo
and with his own friends. but had SAT-
| nothing to the Governor about the mat
ter. Williams testified that he went t
the Governor with the matter and tn
Governor stated that he would take car
of the matter: that he had the voucher
in the vault In the State treasurer's offic
and the others at home. They were 4
meet again the next week but the follow
, ing Monday the Governor was called T.
Washington and Mr.. Williams testife,
, to receiving a 'etter to that effect. Thi
was in April On the 10Th Williams wrot
to Graham about the matter. Gan effor
was made to get this letter into tho cas-
but the State objected and 1t was ex
= cluded The defense took an exception
which was allowed) The shortage re
ported at that time amounted to S5,5754l
= Mr.. Williams had commenced his audit o
r the books to make up his report for tn
t biennial period ending June 80. 1918, II
{ said that because of the other work Il
3 his Office he had to do the work In piece
8 meal and was examining the records witt
: Mr.. Joslyn when he found the red inl
>. entry on the books.
I At this period in the trial recess wa
Z taken until 10 o'clock Monday morning
= The court expressed regret that the jur
o was In the predicament that It found itsel
, but that the jurors would have to max
i; the best of 1t.
< The term departmental vouchers
. was newone n the testimony and re
I ferred to the receipts given by tn
+; heads of departments. The state mad
Q all kinds Of objection to the use of tn
I term Advances" cleaning that ther
;, was no such thing but the court ex
Q planned the term to the jury and al
!. loWed its use RaIattya IN tho tarr