Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-05-05
STATE FUND DISCREPANCIES ~
SHOWN IN AUDITORS PROBE

figures run in the even hundred thou
"a ands. .. -
II. of course. sumpli6es the bookkeep;
ing.
When II comes to the banks holding
| active accounts. that Ia the genera
fund account. subject to daily checks
as necessary. the showing grows In IN
terest.
Discrepancies Run Hid,
Here the discrepancies run a. high
as $500. 900 in one month = accounts
that is. there is as much as S3OO.WW
to S4OO. 900 difference between the
banks books aud those Of state Treas;
, urer Kephart as to the amount OF
money on deposit.
The Quaker City National Bank ot
Philadelphia in its sworn abatement oi
August 81. 1918. showed that II held
S473. 124 BS of the states money
against which there was S3912.99 to be
charged in outstanding checks. leaving
a balance Of S469. .211 60.
According to State Treasurer kep.
harts books the bank on that date had
only $269. - I 80 Of State funds In its
vaults.
The Colonial Trns, Company Of
Pittsburgh. on the same date. had an
adjusted balance Of State funds of
S5S2, ,345. SO. though the State Treas
urer claimed that II had only matter
Of $3.50. .345. 81.
The Quaker city National Bank a
month later reported $277.277.93 Of
State money on hand. The State Treas
urer swore /, was s177.l77.93. or
S1OO.O 900 less.
Jump In Sums Noted
Here is where the figures grow wider
apart in gradual progression OF S1m.
september 81. 1918. the Colonial
Trust Company reported S35O.3i5.o5 on
deposit. The State Treasury books
made It only Sl5O.345.6. little dif-
ference of 500. 600.
December 81. 1918. the Common
wealth Trust Company. Of Harrisburg,
reported an adjusted balance In favor
of the State Of $685.. $3.50. 1S. Mr.. kep-
hart swore it was only SS2.oS6.le.
discrepancy Of $500 900.
The peak was reached AT the same
above date when the favored Colonial
Trust Company swore TO bank bal
once in favor of the State of S404.-
SG6.O7. while the published report o.
State Treasurer kephnrt made II only
sos. 1876. difference between the
two sets Of books Of $500 900.
have stated above that banks In
terested in this matter Of State deposits
must have been aware Of these discrep-
ancies.
Every month the State Treasurer
publishes a statement on large shee'.
the size of one page of newspaper. in
which is recorded the amounts OF money
on deposit in the various favored banks
over the State. A copy Of this is mailed
10 everybody interested.
4 Ranks Should Have Inquired
A State depository Official noting a
discrepancy Of 500. 900 in this report
in his banks account might attribute
1t TO a typographical error. But even
that should have provoked an inquiry.
When. however. this discrepancy ap-
pears repeatedly one would imagine thst
some official inquiry would be made. or
an investigation instituted.
Bur il is pointed ont thar the state
Treasurer was violating the law still
further by making deposits in favored
banks beyond the limit fixed by statute
This law provides that 10 non active
repositories the limit allowed is $500.
600: in nctive depOsitories il il nnlaw.
ful TO deposit more than % per cent Of
its capital stock and surplus.
The Pennsylvanin Company for In
surances on Lives and Granting An
nultles. non .actlve depository. hRd
S4OO. 900 on deposit. 100000 in excess
Of the limit allowed BY law. on August
81. 1920. State Treasurer Kepharl
swore that it was $500. 900. the exact
amount. or limit of safety.
II is noteworthy that the report of
Main 4 Co. has been forwarded to
Attorney Genera Alter for action.
Thus Tar the Attorney General has not
instituted legal proceedings TO recover
the various sums due the State through
the unauthorized expenditures OF the
present State Treasurer. Charles A.
Snyder.
The case Of his predecessor. Harmon
. Kephart. is now before Mr.. Alter for
his earnest consideration.
Will he act:
e bond road fund is presented as follows ::