Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-05-12
STATE GOT ALL DUE '
It, kEPHART AYERS
Denies Law Required Him to
Deposit Commemorative
Money IN Any Banks
POINTS TO DELAY IN EXPOSE
3. a S'aH torrcspo0deOI

Harrisburg. May 12,--formcr State
treasurer Kcphart issued a statement
today denying that there is anything
wrong with the Treasury funds or the
bookkeeping methods u~el und"r his
administration.
The official nov uuGrr fire ~ result
Of the revelations mndc 10y the auditing
firm Of Main & GO. demands 10 know
why Il took Mr.. Lewis. who has been
Auditor Genera tifty-threc weeks and
was Deputy Auditor General while
Kephart was State Treasurer. So long
20 discover that something was wrong.
''Why has be waited until jus, before
Il primary election tn make these insin-
uations?' kephnrj demanded today.
Kcphart continues 20 maintain that
the state "rCcrivcd every dollar 10
which Il was entitled" in face of the
latest audit report which charges the
Star" failed 80 GO interest on huge
sums Of money.
His statement follows:
''Why don't tn" people vino ar" max
ing all the fuss about my admintstra
zion as State Trrasnrer come right out
and toll tho truth about it: Why are
th"v trying to fool tho rcopl" with ac-
"ountants' reports and details Of book
entries?
Handled $500 200. 900
II took the Office of State Treasurer
May !, 1917. flied my bond 10 secure
The Commonwealth against any loss in
money ! handled during my term Of Of
fec as Treasurer. | handled more than
$500 900 600.
Indsr the law. AS Treasurer. ! was
responsible for III" money received. |
was not required ~ deposit it in any
banks or triS' companies Under the
Act Of 1906. il I deposited il in GER
tain trust c0mpGniN' and banks selected
by thc Board Of R"venU"t Commissioner ;
and not exceeding the amounts as fixed
by that law. | was relieved from per-
sonOl liability IL anything Happened 10
those institutions. Il was distinctly
provided in that a. that nothing in II
should affect my liability for proper aC-
counting for all moneys paid to me.
The law provided that at no tim"
>hould the combined deposits in tn"
active repositories exceed the sum OF
5000 600. and that the deposits in the
inactive dcpOsitori"S should not ex-
coed - per cont of the paid-in capital
and surplus of each. with an overall
limit Of S30o.oOO in any institution.
Not Required TO Deposit Moneys
The revenues of the state far cx-
cccdcd the amount contemplated when
the Act Of 1906 was passed and large
sums OF money were raised on bond
issues never contemplated by that act.
Now | am criticized because when the
unusual situation developed and I had
So much more money than was eX
pcrted. i, is said deposited in some
banks more than | should. and com
plaint is made thar ! carried SO 900
in cash in the State Treasury Depart
ment without depoSit!ng It az all.
There Is nothing in the law that
required me 20 deposit the money in
banks. The Commonwealth furnishes
equipment. vaults. safes and n force OF
employees and wot"hm"n in the Capitol
far superior to the facilities OF many
banks in which deposits were made.
II have fulfilled my full duty under
the law. Ny accounts are audited,
cloerd and the balance turned over and
the Commonwealth has received every
dollar 10 which X was entitled.