The Daily Alaska empire., 1931-12-01
RESPONSIBILITY IS NOW BOARDS
 AYERS AUDITOR
Cole Abides by Appeal Boards Ruling but
 Explains Position

LOldy, OdSll SOlc, 1clIRtOl ldl fAu0A ! tor, announced he would abide by the decision of the Territorial Board of Examiners in the II con tested claims on which the Board last week rendered decisions over ruling the Auditor. Warrants for settlement have been prepared and transmitted to the Treasurer for payment.
 After due consideration, this os- flee has decided to abide by ths decision of your Beard he said il, letter to it, adding: Tt first seemed that my responsibility was still held, but further thought leads me to believe that the responsible ity is now yours, as to whether ' not the findings are in accordance with the facts"
 Criticises Boards Action
 A detailed review of the severa claims, together with the policy oi the Auditor with respect to each, io COllIdlliCO III MI. SOlC obdbt- ment to The Empire which Is critical of the Boards action in the matter. He differs sharply with 1t in his outlook on the finan- cial condition of the Territory, the advisability of following the legal opinion of the Attorney General in the settlemtn of Territorial at- counts in general, and maintains his original objections to the se5- clement of the claims in question. Regarding the financial outlook, MT. Cole asserted that his surv y of the situation, which was bas d on expenditures for the first sev n months of the current biennir. m and the necessary expenditures tliat must be made for the remaining IT months, demonstrates clearly that it will require $271 ,566.76 more to conduct the government to the end of the biennium than the Ter ritory can possibly recover from all sources.
 Disagrees On Policy
 He challenged the reasoning of the Attorney General which sup ported an opinion that all lia5ili- ties incurred during any calendar year must be paid off befor ethose incurred in succeeding periods could be settled. In the present state of the Territorial Treasury, he asserted, to follow this policy would result in suspension of Territorial aid to schools, payment of pen sions and all other necessary gov ernmental activities for the first six months of 1883.
 He insisted that the appropria- tions measures of the Legislature are based upon biennial period rather than upon any system of calendar or fiscal years. This, he asserted, must be taken into con- sideration of payment of operating expenses to the end that sufficient funds shall be available at all times for the payment of primary claims, under which are classed schools, pensions, etc. In order to achieve this, it will be necessary to defer payment of the secondary claims until all preferred ones have been satisfied, he contended.
 Responsibility Is Auditors
 MT Cole disagreed with the Boards conclusion that the Auditor was not empowered to review the actions of other officers and boards as long as they are properly per forming the functions with which they are charged by law.
 'The law creating the Auditors office he said requires that the Auditor shall carry a bond of s25,- 900 for the faithful performance and observance of the law creat ing his office. In addition, a pen alty was provided, which reads as follows:
 eff the Auditor shall allow claim against the Territory which he knows to be false or fraudulent or for which there is not an exist in appropriation against which warrant may be drawn, except where otherwise provided by law, or who knows to be not just, true or legal charge against the Territory, he shall be guilty of a felony, and shall be punished by a fine of not more than $10,000, or by in the penitentiary for not more than two years, or by both such fine and Imprisonment, in the discretion of the court
 There seems to be little doubt that the Auditor is the individual who is held responsible for the allowance or disallowance Of claims"
 Analyzes The Claims
 Mir Cole analysed in some detail the claims in question, giving the reasons in each case that impelled him to defer or reject payment.
 The eight claims from the High way Engineers department, aggre-