Putnam patriot., 1925-12-25

Dr Overlook, S42. .07s belonging to the estate of J. W Cutler and S20, ,340 belonging Co the estate of Mary Card ner. were used for the purchase of SiS5, 900 par value Fourth Liberty Loan bonds from Messrs kidder, Pea body x Company of Boston, whie1 were delivered to the Federal Reserv Bank of Boston on February l5. 1920 and together with S145.000 par value Fourth Liberty Loan bonds received from the First National Bank of Put nam were exchanged for $330,0 % re gistered Fourth Liberty Loan bonds and delivered Co the treasury depart ment of the state of Connecticut.
 Bonds Not Delivered
 It is therefore determined that the $33O. 900 par value of bonds purchas- ed in November and December, 1920. and identified by numbers were not delivered to the state treasury depart. ment for the sinking fund and the teachers annuity fund at the time of purchase, or any time later; and that the $330 900 par value of registered bonds recorded in the department as received on March 9. 1921. were the bonds exchanged by the Federal Re. serve Bank of Boston on February 16, 1921.
 If is also determined that substitu- tions were made of bonds purchased by the state treasury department on August 9. 1919. in the amount S20o.00 par value for the teachers pension fund by bonds of like par value purchased November l3, 1920. and November 5, 1920, from Messrs. R. L. Day x Company and Messrs Roy T. II. Barnes < Company for the sink ing fund; that substitutions of the S200. 900 par value bonds purchased in November, 1920, for the sinking fund together with S30. .000 par value bonds purchased December l6, 1920, for the teachers annuity fund, were bonds of a like par value belonging to the First National Bank of Put nam and it's creditors. At the time our engagement was halted we had not determined the facts relating toI the substitution made on December 16. 1920. with the S30,000 par value bonds purchased for the teachers an- nuity fund, however. it appeared to be for q like amount previously pur. chased for the teachers pension fund
 Fixing" Denied
 Following the making public of the above report conference was held at the state capitol at which the gov ernor. attorney general and Deputy State Treasurer Judd were present. The report that the books in the state treasurer's office had been fixed" was natly denied by Mr Judd who had been to Boston and elsewhere and traced the course of Liberty bonds bought by the state through the Put nam bank.
 At the same time. Attorney Gen eral Healy had carried on an investi gation of the legal phases of a claim that these Liberty bonds were bought by Gilpatric with stolen funds. dur ing which investigation. Mir Healy in. teryiewed Walter Gilpatric. New York lawyer and brother of the default ing banker.
 On the strength of their inyestiga tions. it was concluded that the state has in the treasury no bonds that it is not legally entitled to have.
 State Satisfied
 Governor Trumbull and other stats officials feel satisfied with the investi- gations made on behalf of the state that the state treasury not only has dollar for dollar of its funds intact but that in these funds all of the bonds are the lawful property of the state of Connecticut and will not be turned over to the receiver or anyone else without an order from a court of competent jurisdiction. It is also declared that no further examination by experts on behalf of the state will be undertaken.