Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-05-25
AudN Spotlight
GLareS on Bell


county, of 1881 .SfS.t,:,, which was car
ried ns receipts not deposited until JUL
]. lolS. 1t appcars from snd records
treasurer checks. and split up int
lesser amounts. go TINT hc cou.G readi|!
use the fund he was creating ns dc
hinnu would be made upon him for IT.
Assuming that he was acting within
his official authority his request Wa
compiled with, and over n course o
several months he cnshcd out the tota
nmount due the State Treasury. Scvcrn
times later the same operation was re
pcated. Every facility was afforded tht
auditing company In it's investigation
and l am glad to note from the rcpor
that every cent due the State wa
paid"
The report brought definitely into tn,
open some Of the whispered reports thnt
flew about the State when Mr.. Bel
was mentioned as the successor to Sen
ator Crow. It Was rumorcd that the
Senate seat was on the auction block.
Kephart entered on his books n.
'cash on hand the report shows
funds which should have been placed 4,
interest bearing accounts, the account
ants contend.
The original checks were then turned
over to Mr.. Bell. on whose bank. thr
tHe OTlklIt
checks were drawn by the Alleghen,
County treasurer.
a number Of blank checks were then
given to Kephart by Bell. signed Gar
negie Trust Company. by John 4. Bell
president. for Kephart to fill out and
use as he saw fit.
Report Is Sensational
The uncOvering Of these transac.
tions provides the most sensational
chapter of the accountants report.
It gives the lie, Mr.. Lewis contends.
to the politicians who. before the pri =
mnries. made the boast that State
finances were absolutely sound and that
the Auditor General was "playing poll Z.
What implicit confidence Mr.. Bell had
IN kephart to give him blank checks ia
fill out as he saw fit can 90 explained
only by the two men who figured In
the transactions when they have a
public hearing on June l..
MIR. Bell goes so far as to say that
he did it because Kephnrt asked him
to do it. Kephart's only statement is
mat he has no comment to make before
the hearing.
1t is Tor them to explain who had
the free use of State money ranging
N amounts as high as $372, 900 at one
time and extending over the period be Z.
tween June 20. 1918. and April 30,
1921. with an incurrent interest loss to
the state Of some $11, 300.
The fourth section of Main & Co..
report deals with the tactics Of Kcp-
hart in hOw he handled 81. .853. .O7O. .j:J.
1t includes an item Of S720. 123 .O2 men L.
toned In Section Of the report, but of
@,,1, n aTy
involved In the Bell -Kcphart check ma :
nipulation.
The Treasurer Of Allegheny County
kept a non. interest. bearing account in
Mr.. Bells trust company. Hc drew
checks for taxes against that account
and forwarded the checks to the State
Treasurer. Kephart got them, and in
stead OF depositing them to the credit
of the state and collecting the funds
from Bells trust company he turned the
County checks over to Bell
and took the blank checks from Bell in
return. the report shows.
Using the blank checks as he saw fit.
kephart made good to the State from
time to time by filling out the blanks
and dcpositing them to the credit of the
State.
Auditors Explanation
The auditors explain as follows how
the seven different groups Of State funds
were handled in these manipulations:
Group 1. $3.50, III. .Ss.
June 20. 1913. the State Trcasurer's $
cash books show the receipt from +. D.
Friebertshnuser. trea asurer of Allegheny
that this amount was deposited in the
Farmers and Mechanics National Bank.
Philadelphia, and that July 3, 1918,
81 bfS IonnSit 1aI
carried as receipts not deposited until
July II. 1913. July 12. 1913, n de-
posit was made in the Commonwealth
Trust Company. Harrisburg. of 5000,
900. The receipts not deposited, name
ly. S3S1 $500. thereafter were re.
iuced by this deposit.
July "a, 1918. the Commonwealth
Trust received another check from f..
ID. Friebertshauser for sos, ,O53. 70
drawn against the Carnegie Trust Com.
pany. as evidenced by the Cancelled
check we inspected in the Office of the
treasurer of Allegheny County. Thi,
check was numbered 454. dated July s.
lolS. and stamped paid by the Carnegie
Trust Company. the bank on which II
was drawn November .. 1918. How
'ver, July ~. l91S. the date this check
was recorded as received. a check for
% 'oIc.V' WIS uepOSltpu 10 the credit
If the Commonwealth Trust. thus nc.
for the first amount of S3SI,.
$500. but leaving receipts not depos.
ted Of sos. .3J3. 20. as at July ~. 1OIS
.'On further examination of the rec.
'rds of the Carnegie Trust COMPANY,
farnegic. Pa. and the Colonial Trust
'Ompany, Pittsburgh we find that n
leposlt of SOS. .953.70 to the credit. of
he Commonwealth. October %. I01S
vas made by dcpositing n check drawn
N he Colonial Trust Company, bear
ng the same date. payable to the order
If =. NJ. kcphart, State Treasurer. or
,enrcr. and signed Carnegie Tru,,
Company, by John \. Boil, president
Group II, $3.50, ,6l5.SJ.
Checks Drawn on Bells Banl,
'On examination Of the checks orig.
nally issued by the Treasurer Of
\ Allegheny County. aggrcgating the
lbovc amount. we find that these checks
we're drawn upon Carnegie Trust Com
amy and issued to II. NJ. Kephart,
State Treasurer, as follows:
neck NO. Datfd Amount
q. Susust ~. lolS SSl,61s.S IS
~ Septehper y. !VlS lOB,01G.Oa
80 November IL, i0is 3''ei5. 90
- December B. 1915 4, ES0 sy
30 December 8, 1918 Il 3iS o0
50 January 0. 1Hl" ~ 10
~ January ll,101H j on0 ~ ,
NJ IanJdrE II. 1919 I30u 80