New Britain herald., 1924-08-21
MYSTERY ENvELOPS
 CHECKS FOR S40,000.
State Officials Believe Gilparic
 Put Part Of Money in Bank
BUT S2O,OOO DISAPPEARS
Former State Treasurer Removed to Less Expensive Quarters in Hos pital-I'amily Announces Ills Home Win Re Sold 10 Pay Debts.

Hartford. Aug, 21,-The audit of
 the books and accounts Of the state
 treasury department will, In many
 Of its phases. cover the entire period
 of c. Harold Gilpatrios service as
 state treasurer, State Treasurer Anson
 T. Mccook said today Particular at- | tention will be paid, however. to the
 transactions of the past six months,
 and those of the immediate preceding
 six months period will also be scru-
 tinized closely. Gilpatric became state
 treasurer in January, 1919.
 Just how long the audit by Searle,
 Oakley and Miller, selected yesterday
 10 make the audit, will take, Is as yet
 matter of conjecture, but the im-
 pression at the capitol today was that
 fully five or six weeks would be Tee qured. Attorney General Frank E. Healy today drew up the contract with the accounting firm for sigma ture. It Is expected that the ac- countants will start work on the state treasurer's books wihin q very few days.
 Mir. Healy, in referring to Gill patric's manipulation of two S20,000 checks for state funds to be deposit ed in June in the First National bank of Putnam, said that late in July the state received Putnam bank state ment signed by Gilpatric, in which the state was credited with S125,000 cn deposit, and with the statement was enclosed the banks check to the state for interest on S125,000 on de- posit. Mir. Healy said that he un- derstood the bank has record of s105,000 on deposit there being no record of the S20,000 which was to | have been been deposited June 27 and | for which a. check was drawn in the l state treasurer's office June 27, and | cashed by the Merchants National l bank of Boston.
 A $20,000 check. also providing for state funds to be deposited in the Putnam bank, and drawn June 3, was similarly cashed in the Boston bank. The state officials conversant with the Gilpatric case were today of the opinion that the Putnam bank had record Of this deposit. But there was no statement forthcoming | from Receiver Coffin to indicate just how much the state had been credit ed with on the banks books.
 MT. McCook said that an inspection had shown that no other bank in the state deposit greater than the maxi- mum permitted by it's capital and surplus.
 Coffin Silent on Deposits
 Putnam, Aug. 21.--Efforts to learn 1ere today from Receiver George w. Coff1n of the First National Bank or rom other sources what disposition vas made of s4O,o0o, represented " two checks for s20,000 each, drawn I 'n the state treasury by G. Harold E Iilpatric, former state treasurer and C lleged defauting cashier, and which ! indicated were cashed y the Merchants National Bank of c Boston, were without result. |
 Receiver Cif1in declined to discuss n he transaction in any way or to say e 5hether the money was deposited in | he First National Bank by MT. Gill I atric. Neither was it possible to con- | rm the report that the money was p sed in local building project. It is il nown that close friend of Mir. Gill a atric was engaged in an extensive Il uiding operation. But whether any f the state funds mentioned had any u art in the financing could not be con- C rmed. u According to the information from G state official one of the checks was rawn June and another June 27, Il ith the explanation of Mir. Gilpatric II , Deputy Treasurer Judd who pro- 1T sted against increasing deposits of W le state at the Putnam bank that W ley were for special account, that ey ewer to be used in connection with
 building project on which the Put F I'm bank had been advancing money fl ley were for special account that sl Id that when completed moneys of VI, e state school fund would be ad- h, Inced for a mortgage on the proper ii, si Receiver Coffin said today that the ac
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