The Daily Alaska empire., 1950-03-30

The audit of the books of the Territory of Alaska made last year and which resulted in the imprison- ment of the Territorial Treasurer is not yet dead issue, Senator John Butrovich told the Republican eau GUS here this morning.
 ."Twenty-seven thousand dollars worth of Territorial liquor stamps are still unaccounted for and if I never do anything intend to see that this matter is brought to con- clusion." Senator Butrovich said.
 The Fourth Division Senator, who was chairman of the Senate Finance Committee during the 1949 session of the Legislature. opened his talk on "The New Deal Audit of Alaska's Finances and Affairs" by reciting brief history of past audits. Commencing in 1923. when an audit was made covering the years l9l6-l922. there was an audit as regularly as clockwork each bien- nium, completed and ready for the Legislature within ten days after 1t convened, as required by law.
 The last of the regular biennial audits was made in 1941, Senator Butrovich said, after which there was a gap until 1945.
 Routine Procedure
 These audits were carried on by previous administrations as rou- tine matter of good business pro- cedure," Butrovich pointed out He added that each of the audits, through the audit of 1941, was pre- sented to the legislature. 50 far as I know. the l945 Legis- lature did not ever see the l945 audit although the law requires that the audit be presented to the Legis- lature within ten days after t con- venes," the Senator added. Butrovich did not specifically place the blame for this failure, al- though he stated that it was the duty of the governor to secure a biennial audit and present the audit to the Legislature.
 Tn l947, Butrovich said. the Legis- lature was told that there were no 1 funds for an audit that year. The Legislature thereupon appropriated $2O.000 for the specific purpose of having an audit made.
 When we returned here in l949 we were informed that the. appro- priation had been frozen and that no audit had yet been made" But royich related. 'The Alaska De- velopment Board was able to speno freely" the Senator commented, but there was no money for protec- ting the taxpayers by auditing os the books
 Auditing Committee
 Butrovich briefly related details of amending the law to provide for an auditing committee composed of the Chairman of the Finance Con- mittee, the Chairman of the Ways and Means Committee of the House and the Territorial Auditor. and the machinery of preparing for the audit ] last year.
 He went on to tell how the two Legislative members, himself and Representative James Nolan of Wrangell. were called to Juneau in May by the field auditor of Arthur Anderson & Co.,. who were making the audit
 We were presented with convinc- ing evidence that the Territorial Treasurer should be removed frori office for the protection of the tax payers. the bonding company and other officials Butrovich said.
 The Senator told the delegates of the committees unsuccessful efforts to locate the Treasurer. When he could not be found, Butrovich said. the audit report was presented to the Acting Governor in the absence of Governor Gruening who was then absent from the Territory.
 Butrovich quoted the Acting Gov