Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-11-24
NEW YORK BANKERS
READY TO CONTINUE
PAYING WARRANTS
Continued From Page u

(COnGlnuGu rage
deferred payment warrants for the
purpose of making prompt payments
of the states appropriation to the
common schools. The legislature
passed a law authorizing the gov
ernor to issue this special form of
warrant for this special purpose, the
warrants issued each year to mature
on February 1 of the ensuing year
and to be discounted at the lowest
rate of interest obtainable.
The modus operandi at that time
put into effect, and used since that
time, was for the governor to draw
the warrants to the local school au-
thorities according to their pro-rata
share of the state fund and turn
them over to the superintendent of
education; for the superintendent to
send these warrants to the local au-
thorities for their endorsement, and
return to him; for the superintend-
ent of education then to turn over
the warrants to the discount agent,
who sold them and disbursed the
proceeds to the counties and cities
named in the warrants.
Up to 1919 the school warrants
were discounted through various
banks. In 1919 r. N. Berrien, Jr.,
offered to discount hem at a lower
rate of interest than the state pre-
viously had paid and was according
ly awarded the contract. He han
died the whole amount discounted in
1919, in 1920, and in 1921 up to the
present time, aggregating about
$7,5OO,OOO.
Governors Statement
The list Of checks drawn by Mr..
Berrien and turned down by his
bank represents a disbursement
made in the last few weeks From
| the foregoing explanation of the
manner in which the discounts have
been handled, it will be seen that
the proceeds of a discount were de-
posted by the discount agent to his
credit, and disbursed by him to the
| local school authorities. In other
| words, there was lapse of time be-
/ tween the delivery Of a batch of war
rants to Mr.. Berrien and the delivery
| by Mr.. Berrien of the proceeds of
such warrants to the local school
| authorities. Mr.. Berrien was not
under bond.
Governor Hardwick Monday after
| noon issued the following state.
ment:
"The school warrants in question
! were issued by the governors Of
flee in conformity with the provi
sions of the statute, payable to the
county and city superintendent OF
education, and were delivered by
| this office to the state superintend'
ent of schools. -
'This office has followed strictly
both the unbroken practice and the
| law with respect to these warrants.
while I deeply regret ths occur,
renee, nothing in my power could
have been done to prevent it. l
earnestly hope that the defalcation
may not prove very large and that
Mr.. Berrien may be able to make it
good"
Items of Alleged Shortage
SUPERINTENDENT Britain furnished
Governor Hardwick Monday after
noon at the conference list of the
items which must be accounted for
| by Mr.. Berrien. The list consisted
of checks drawn by Berrien for dis
bursement to city and county school
| boards, and was as follows:
Heard county, $936.S7; Decatur
county, $586.13; Chatham county,
$1O,061.81; Warren county, $l,823.25;
Brooks county, $2,925; town Of East
| Lake, $6S.20; Lawrenceville, $253.34
Emanuel county, $5,846.25; Lumpkin
county, $2,497.5O; Liberty county
$2,435.94; Bulloch county, $2,93O.63
Madison county, $5,846.25; Echols
county, $685.; town of Pine Park, $50
| Superintendent Brittain's conclu
sions from his investigation of the
accounts Of Mr.. Berrien, and his
recommendation that Mr.. Berr1en be
arrested unless he made an ADJUST
ment by $3.50 o'clock Monday after
noon, were embodied in the follow
| ing letter to Governor HardWlck:
| GAS soon as I learned from yOu
that there was report in banking
circles that Mr.. Berrien, of the K. N
Berrien company, had failed to pro
vide funds to meet a check he hat
issued and was also kiting, and there
fore, in financial difficulties, L asked
Mr.. Berrien if he had failed to pro
vide funds for any check given tt
local or county school systems. He
FURNISHED me with a list of hall
dozen upon which, he said, there
was some delay. At your suggestion
however, 1 arranged to have his &C
counts checked over, as far as pos
sible, for several months past. =,
HE claims that some of these are
Iproyided for and that delay in mai
and other reasons account for his no
having cancelled checks. l communl
Gated at once by telegraph and let
ters with the superintendent an(
treasurers concerned. All have no
been heard from yet and l hope by
Monday to have complete informa
ton as to whether or not the educa
tional authorities have received pro
ceeds for the warrants listed above.
Your prompt action in telegraph
ing S. N. Bond & Co. not to dis
count the eighteen Q0 warrants sen
them last and to return them instead
at once, 1 believe will prevent com
plications and possible loss as tt
them, leaving only the list mentioned
in doubt.
| eff Mr.. Berrian does not provide
payment for these warrants, indicat
ing that the proceeds have been useC
by him personally, by Monday, No
vember 81, at $3.50 p. M, please asl
Attorney General Napier to institute
proceedings against him at that tim'
and also see if it is possible to re
cover the missing warrants through
legal reasons"