The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1929-02-22
State Board of Accounts
viii Be Asked to Check
Private Books of Any
Concern involved.

WlGnouC disclosing startling testi-
mony in hearings on Indiana Ma
tional Guard armory construction,
the state senate armory probe
committees report, to be delivered
today, will make important recon-
mendations designed to check
abuses which the committee is led
to believe exist, Senator Alonzo H.
Lindley of Kingman, said.
The committee will report that it
does not believe it has the power to
go into costs of construction of ar
mories which the Ostrom Realty
Company has built and for which
the Peoples State Bank has handled
financing for the state armory
board.
Therefore, the committee recon-
mends that the state board of ac-
counts be empowered specifically to
go into the private books and records
of any concern involved, Lindley
said.
Such an inquiry would take about
six months, according to Lindley.
Will Ask System Change
AT the same time the committee
will recommend, according to Lind
ley, that the "closed corporation"
plan of building armories as now
operated by the armory board, the
bank, and the realty company be
stopped. Instead of the $350,0GO
annual appropriation for armory
rentals asked by Adjutant General
William H. Kershner, it will advo-
cate that only $4,000 a year be
appropriated for each of the next
two years.
There are outstanding about
$1,700,00O in arInory bonds. The
$4,000 would provide the rentals
out of which the arnory holding
companies could meet the payments
on bonds now held by small banks
and citizens throughout the state,
but would not provide funds for
further operation of the scheme,
Lindley pointed out.
Lindley indicated that the farthest
the committee would go toward dis
cussing some of the testimony about
construction would be the simple
statement that it 'looks as though
there have been some excess profits. -
Legal Action Possible
The recommendation that the
state board Of accounts be given
power to investigate also will include
recommendation that if any irregu-
larities be found they be turned over
to Attorney-General James M. Og-.
den for such legal action as he may
deem proper.
A change in the method of pay
ing armory rentals will be recon-
mended, according to the chairman.
At present, Adjutant-G General
KerShner, as a member of the ar
mory board, pays the rentals to him.
self as one of the arnory trustee
officials. This provides no check,
Lindley said.
The committee will recommend
that Kershner draw a regular state
voucher for the rentals to the reg
ular trustees of the various armories,
and that it go through the state
auditors office like all regular state
ment expenditures.
This, Lindley pointed out, would
give the state board of accounts the
right to keep a careful check on
administration of the rental fund.
Among details to be omitted from
the report were such as that testi-
mony that the contract on which
the Ostrom Realty Company was
paid $4,000 for construction of the
armory at Franklin, Ind, called for
a cement drive, whereas a cinder
drive was provided, twas learned.
The committee also has been told,
it was learned, that the contract
called for copper cornices, but in
stead there appeared on the armory
plain painted corniceS.