The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1928-10-20
SHORTAGE SEEN
AFTER AUDITING
HOTELS 'B00kS
walla. According q to Charge s.
Forged Name Of Lobaeh
to Deposit Slips ':N
POLICE MAKE SEARCH
Peculations Said to Have Ex,
tended Over Period Of Two !
Years Il


EDWARD Z. patterson, proprietor
Of the Patterson hotel, today sWSfe
out . warrant for the arrest Of "a.
gene Merritt Walla, bookkespcf,
charging him with the theft s,o1
$6,308.62. It ID alleged that thu
populations started In 1926 and Gov.
cred . period Of two years. Sheriff
Wslch went to Mr.. Wolla's farm
north Of Bismarck to apptehsnd him
upon . warrant issued BY States
Attorney F. E. McCufdy, but failed
to locate him there, his wife. ASSERT
ing that Mr.. Walla was at New
Salem.
Lund's Audit ~
Discovery Of . shortage Of the
books Of the hotel company va
made following IN audit by O. B.
Lund. The method used, according
to the report given by Mr.. Lund. was
forgery Of the signature Of II. 8.
l.obach, receiving teller Of the First
National bank. X.
Checking up with the First Na.
tional bank, it was found that ON
many days over . period Of two
years no deposit was made ct the
First National hank, but that Mr..
Walla, it is charged, forged the name
Of Mr.. Lobach to the deposit slits
which he attached to his daily 70.
ports to Mr.. Patterson.
Covered BY Bond
A greater portion q the loss. to
the Patterson hotel il covered BY
surety bond, unless . complete audit
Of the books which, has not vet been
made discloses addltidaa1 ,shortaeiG.
Mr.. Patterson was inclined to believe
that there had been other pscula.
tions which . more complete check
would reveal. All. transactions in.
which Mr.. Wallis .plftictpa6eds aars
being carefully checked By Mr.. Pat.
terson, and great numhsr 81
charges are to b lodge against Mr.
Walla.
Mr.. Walla entered the employ 81
Mr.. Patterson in 1929, shortly after
his dismissal from the secretary Of
states office following the discov.
cry Of q shortage in the automobile
registration funds. He was tried or
a charge Of shortage, but no con.
viction was secured 1t that time
The trial caused considerable in:
terest over the state, and was prose.
cuted by William LANCER, who wal
then attorney general
In 1927 Mr.. Walla purchased q
farm II miles north, and consider
able equipment.
How Plan Worked ~
Mr.. Lund in his report states That:
This forgery was substantiatoa
both by the bank officer and by Mr..
Walla's admission that ho had. sup
piled the signature Of the roceiving
teller OF the bank. He further nd
mitted the deposits in question hSd
not been made % reported. ~
"The method of handling the cash
accounts Of the affairs Of Mr. Pat
terson was for Mr.. Walla to makesa
daily written report to Mr.. Pa&tet-
son Of each days. cash collections
and disbursements, showing. from
what source cash was roceived. and
to. submit vouchers supporting tho
disbursement Of the cash. :
"Cash received over the amount
expended was 70 b deposited daily
with the First National Bank Of Iii.
marck to the credit Of Mr.. Patter.
sons account. A duplicate deposit
ticket signed BY the receiving taller
Of the bank was to b submitted With
Mr.. Walla's daily report to Mr.. Pat
terson - evidence the deposit hid
been properly made with the, bink
for each days cash collections. !"