Indianapolis Times, Volume 33, Number 243, Indianapolis, Marion County, 18 February 1921 — Page 15

ASSEMBLY TEARS LID OFF WASTE OF ROADS BODY (Continued From Pre One.) r ft person whose name dees not appear In the list of contractors submitting bids. ft. That L. H. Wright, director of the commission, was Instructed to make ■pecifleatlons for the garage after bids were submitted. 7. That It has been the practice of the commission to purchase supplies and materials -without competitive bidding. 8. That the State lost $413.97 In Interest on public funds beeanse of the action of Mr. Wright in withdrawing money from the public depository and depositing it to a personal account with the Aetna Trust and Savings Company of Indianapolis. The overhead expense on the construction of highways amounted to about 39 per cent of ttie amount actualfy spent on construction work, the report shows. The overhead is about 28 per I cent of the total amount allotted to construction work. These figures are for the fiscal year ending Sept. 30, 1920. 515,183.25 FOR HOTEL BILLS AND MEALS. The details of all disbursements of the commission, as shown In the report, reveal some startling figures. For Instance, the commission spent $18,193.25 for hotel bills and meals during the year. The details of all disbursements, which show a total of $2,522,439.59, Including maintenance and construction costs, follow: Salaries, $442.(192.51; hotel and meals, $18,193.25; auto hire and license, $3,900: telephone and telegraph. $1,445.07; railroad Pullman, etc., $5976.15; auto storage and repairs, $43,819.93; gasoline and oil, $54,358.58; freight and express, $1,373.55; postage, $1,364.90; membership fee association. $10; typewriter rent. $23; supplies, $9,471.95; furniture and equipment. $10,126.97; engineering supplies and expenses. $4,872.72; engineering equipment, f>.242.19; legal advertising, $1,187.59; testing materials. $5,460.68: photographs, $4.80; right of way, $246; dirt, $74.94; automobile license, $2,119.50; Nash quad materials, $2,013.16; auto truck bodies, $132,934.13; new garage in Indianapolis, $71,414.51; medical aid, S6O; bridge and road materials, $141,525.75; tools and equipment. $43,416.41; repair of equipment, $l,B 8.89; maintenance by contract, sls 377.06; payments on contracts, $1,423,322.90; L. H. Wright for rotary fund, $75,227.80; miscellaneous, $311.89. These figures show that a total of $1,083,740 was paid out besides 51.435.740 actually expended on contracts for maintenance and construction. In other words nearly 50 per cent of the disbursements of the commission were made for costs other than contracts.

COSTS $35,611.64 TO BFILD EACH MILE. The actual “overhead" for the maintenance of roads amounts to $42.25 a mile, according to tabulations of the board. This shows a percentage of 15.884, the report states. The report shows further that the average cost per mile of maintenance is $265.96 and that the average cost for construction is $35,611.64 a mile, with contracts let for 135 miles. . In the maintenance of roads a large divergence of costs In the various counties is shown. The maintenance cost per mile, including overhead, ranges from $73.43 in Franklin County to $766 48 in Morgan County. In three counties — Switzerland. Perry and Jefferson —the overhead of $42.25 is charged, although no work was done. The commission questions very seriously the legality of the action of former Auditor Otto J. Klauss in turning over enormous amounts of money to Mr. Wright personally for disbursements. It points out that the law provides for such a procedure in emergencies, but questions whether emergencies would necessitate the expenditure of the sums drawn. It also points out that Mr. Wright’s bond does not provide surety for these sums. WRIGHT DREW $438.401.93 IX MONTH. The detailed account of the amounts drawn by Mr. Wright are set out and some idea of the practice may be obtained from the fact that during one month he drew a total of J488.40i.93. The comment of the report on’this subject follows: After a thorough examination of the re-f .is an.- methods employed in the management of the State highway commission, we are of ti e opinion that for the betterment of this department there should be radical changes In the law under which It operates, especially as to *the present system of disbursing a portion of th ■ funds, purchasing supplies, making oayment on contracts, etc. 1 Disbursing Funds —The Auditor of State should be the paymaster direct to all persons to whom money is due. o. all funds paid out on account of this, or anv other department of the States. Any radical departure from this rule is not nnlv dangerous but we believe, unlawful. True, the statute of 1919, section 29, provides for emergency payments to be made by the Auditor of State to the director and by him disbursed.

WHAT CONSTITUTES EMERGENCY? What is an emergency? large an amount may be ruarlp to apply to an emergency? Is it a few dollars? Or a few hundred dollars? Or a few thousand dollars? There, have been a number of payments of warrants made to L. H. Wright within the past few months ■wherein the amount of money thus turned over to the director has approximated SIOO,OOO. We believe that this method does’ not place the burden of accounting and auditing where it justly belongs. If handled altogether by the Auditor of State it would necessitate a larger clerical force In his office to take care of the work. The help should be provided him. His commission, as we understand the nature of the law, is that of laying out, constructing and maintaining public thoroughfures. Our recommendation would always keep the funds In the public depository until It Is received by the person to whom It Is due and payable, instead of taking It out of the depository, turning it over to the director to be by him disbursed. The director, under section 2 of the highway commission act, is required to give a bond in the sum of $25,000, conditioned on the faithful performance of his duties. It would seem from the language of the act requiring bond from the director for the faithful per formance of his duties, and no mention made of a bond for securing the funds that might come into his hands, that the Legislature did not intend that moneys should be turned over to the director to disburse by personal check such sums as snown below. warrants for LARGE SIMS. On Oct. 27. 1920, a warrant. No. 74927, was drawn in favor of L. H. Wright for $118,722.83; another ou the same day for $46,351.&4. Other warrants for large sums were drawn as follows: 5, Xo. 75791 .$5-> 310.39 Not! 10, No. 75900 80.857.99 Nov. 18, No. 76553 4,,419.84 Nov. 22. No. 7(112 77.13199 Nov. 24, No. 76152 63,084.37 Pec 6. No. 77100 94,060.77 Pec. 9. No. 77190 54,238.3$ Pec. 11. No. 77241 ! 9:1,720.56 Dec 15 No. 77334 64.524,27 Pec! IS, No. 77409 38.934.13 Pec 20. No. 77448 94.755. K) j>ec. 20, No. 77449...*. 13,547.53 Dec! 21, No. 77570 34,622.29 If the bond given by the director was for the purpose of securing funds coining Into his hands, when payments four or flve times the amount of the bond come into his hands on a single warrant. It would seem that the security is entirely inadequate. Only the warrants in larger amounts are here noted. There were many other warrants Issued during the period here noted in smaller amounts that we do not mention. advanced freight payments. The report has the following to say concerning the advancing of freight payments to contractors: Advancing Freight Fayment9 for Contractors — We find nothing in the record of the contracts regarding advancing money to contractors in the way of freight payments made by the highway commission on materials shipped for use op the project- This seems to have become the general practice. Theee sum*

are charged to the account of the contractor on the project, but the freight payments seem to have been made before the material is laid or becomes a part of the construction and does not enter into the construction estimate until after payment is made. The money is thus taken out of the depository, paid to the railroad companea and thus becomes a payment to the contract??* before it is known that tile material Is suitable or has been passed upon by the superintendent In charge. It Is that much of an advantage to the contractor, partially financing him in the work, but if It is not a part of the contract —so advertised when the letting was made and the contract entered into—it is giving an unfair advantage to the successful bidder and contractor, and one not enjoyed by the unsuccessful bidders. Section 19 of the highway act provides that on new construstion work there shall not be paid to exceed SO per cent of the chief eugiueer’s estimated cost of the completed work. GARAGE CONTRACT NOT FATHOMED. Perhaps the most startling revelation of the entire report is that of the manner in which the contract for the commission's garage in Indianapolis was let. Tie examiners admit they canuit fathom it but they give everything they can find on the subject as follows: Minute Record—The record of the minutes of the commission does not show in every Instance all the bids in cases of letting contracts, but only the successful bidder, with a very few exceptions. We recommend that the record be made to show in every case the name of each and every bidder and the price bid. a detailed description of whr* is being let and the name of the successful bidder and the amount of the bid price and contract all clearly set out. The public has the right to know and the minute record of the commission should show all these things. We believe that it is not sufficient to show only the successful bid and bidder and then leave ,Jt for the public to find other bids, thus making it more difficult to obtain the information desired. Resides these detached papers may be easily lost or misplaced. An illustration is cited herewith: On Nov. 25, 1919. bids were opened for the construction of a garage at State (?) and Market streets. Minute record is as follows: "The following bids were received: Frank Maid, $56,193; William H. Harrison, $59,410; George W. Bunting, $54,600 “The director, L. H. Wright, was authorized by the board to let the contract to the lowest and best bidder, to prepare in detail the plans and specifications in order that there will be no misunderstanding as to the work to be done.” No further record of any kind concerning this contract is found until July 31, 1920, where the following is found: by Mr. Oliphaut, seconded by Mr. (.'rakford. that error in the minutes of Xov. 25, 1919, in falling to record for the approval by the commission of the contract for garage to Charles J. Wacker for $67,780 be corrected by recording the same. Also that an additional contract of $l,lOO to Mr. Wacker for extra on garage be approved by the commission. Motion carried."

DOES NOT SHOW WACKER CONNECTION. This record is one of the exceptions mentioned iu our comment on the preceding page, in that it does give on the face ail the bids. The record apparently does not show any of the bids mentioned that were received on Nov. 25, 1919. The record seems to indicate that the low bidder was George W. Bunting. He. apparently, did not get the contract, but it was awarded to Wacker at a price higher by $13,180 and no explanation made. According to the record of July 13, 1920, it would seem that the garage, so far as the record of the commission is concerned, was to cost $68,880. Asa matter of fact, the State paid for that garage $71,414.51. We believe that the record is incomplete and insufficient. The report then sets out the three ’bids, showing that Bunting was bidding in behalf of Wacker, but that the bid is more than $13,000 less than the price at which it was let. The report continues: Harrison's bid is not a bid at all, but an estimate of cost. Harrison is the architect who prepared the plans and specifications for which he received, as he says iu his “bid” in the general construction of Charles J. Wacker, $1,365. The final conclusion is that there were but two bids, Maid's and Wacker's. But the minute record not only shows three bids, hut shows them In such a way that it is Impossible to reconcile the contract with Wacker with the low bid of Bunting. Further, Harrison’s letter shows that he submitted the bid of Wacker along with his letter to the commission, which was mistaken by the commission and entered bv the commission in its minutes as a bid. It seems a most unusual proceeding for an architect to send in a letter and enclose aloug with it a bid from a general contractor, which bid includes the fee for the architect’s commission. The minute record of Nov. 20. 1919. shows that the director was Instructed to ler the contract, but be was also instructed “to prepare plans and specifications in order that there may be no mis understanding as to the work to be done.” Ql ESTION MEANING OF STATEMENT. What would be the meaning of the above excerpt? Does it mean to Imply that no plans and specifications had been made. If so, what about the plans of Harrison which he himself says were to cost 2t, per cent and which was included in the bid of Wacker? We insist that the record of the meetings should be clear and definite and should show all the action taken by the commission. The report shows that on numerous dates between March 2, 1920, and Jan. 31, 1921, Mr. Wright withdrew from the public depository various sums ranging from 50 cents to $147,838.50 and deposited it in the Aetna Savings aud Trust Company. The total of these deposits, according to the report, was $2,552,696.08. The report states: The deposits of L. H. Wright, director. in the Aetna Trust and Savings Company. were withdrawn on personal checks signed ‘‘L. H. Wright, director” and, in a few instances, the account was overdrawn. These overdrafts were sometimes only apparent, for on days on which the bank's statement show* the account overdrawn, there was In fact, a healthy balance. To Illustrate: On Dec. 11, 1920. the bank statement shows an overdraft of $18,544.52. Tiie bank passbook shows that almost $100,090 was deposited on that dav, hut mot credited on the bank’s ledger until the 13th. With this credit on the llth there would have been no overdraft on tbgt day. AVERAGE DAILY BALANCES SHOWN. The report then shows the average aailv balances for each month, ranging from $1,930.81 in March to *63,310.92 the following January. From these balances the interest of $443 97 is calculated. The report then continues: We hesitate to make a direct charge of the above depository interest, but submit that the State DID lose it by this method of handling the fund, which should not have happened. The argument has been advanced that the Aetna Trust and Savings Company carried overdrafts several times for a few days. If it did that was a voluntary service for which no compensation could be claimed. But at the same time, and ALL the time, there has been a large balance in the fund of the State highway commission in the various depositories of the State, available for use any day. The handling of this account, as shown herewith, only emphasizes the recommendations made in another part of this report that the auditor of State should draw all warrants direct to the person to whom payment is due. ORGANIZATION OF COMMISSION REVIEAVED. In the first part of their report the examiners go back to the organization

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of the highway commission under the old law, which was contested in the courts and finally supplanted by the law under which the commission now operates. The report gives short financial statements for each fiscal year from June 4, 1917, when the old commission was formed, until the present date. The statement shows the following: June 4, 1917, to Sept. 39, 1917—Receipts from inheritance tax and appropriations, $314,570.99; salaries and expenses, $7,780.92; balance, $306,790.07. Oct. 1, 1917 to Sept. 30, 1918—receipts, inceipts, including balance brought over Oct. 1, 1917 to Sept. 30, 1918—Receipts, including balance brought over and inheritance tax, $842,466.10; disbursements, including salaries, expense aud equipment, $20,873.67; balance, $815,592.43. Oct. 1, 1919, to Sept. 30, 1919—Receipts, including balance brought over $1,261,610.42; expenditures, listed as “sundry distribution,” $110,020.14; balance, $1,145,590.28, During all of this time not one contract for road work was let. While the letting of the contract for the garage is questionable, to say the least, the commission did not go so far as to ask bids on materials and supplies, according to the report. COMPETITIVE BIDS NOT SHOWN IN RECORDS. “Thousands of dollars have been expended by the commission for tools, implements, material, etc., and if - there has been the proper competitive bidding the records fail to show it,” the report says. The report calls attention to the plans of the commission to permit the director to buy cement for road construction. It warns that if Jhis material is bought it must be contracted for after competitive bids have been received. Another questionable expenditure, the report points out, is that of a payment of $5,000 for the testing of materials, whereas the law provides this shall be done by Purdue University. The report does not go into the question of the letting cf actual construction contracts. It says nothing about ttie practice of the commission in asking for contracts on various materials and then letting contracts for nothing but concrete roads. The report was made by W. H. Glidewell and A. L. Donaldson, field examiners. Members of the highway commission are Charles W. Zelgler, John Ollphant, Earl Crawford aud Archie Campbell.

REPORT GAINS BY CREDIT MEN Division Leaders Turn in Membership Figures. First reports of the four divisions of the Indianapolis Association of Credit Men carrying on the annual membership campaign of the association, which began last Friday, were to be made today at a meeting In the Chamber of Commerce Building. A. P. Stephenson Is chairman of the committee in charge of the campaign, which will end on June 1. Division leaders are: Bank and general lines, F. 11. Bnrteaux: wholesale, William P. Bolles; manufacturers. W. 11. Fletcher; Jobbers, William J. Mooney. Jr. Mr. Stephenson has given his “salesmen" the following “selling points” as direct advantages to be derived from association membership: A report on any collection agency in the United States; inspection of your Insurance; the Credit Monthly, the credit men's official organ; a copy of the national directory at cost, containing the names of 33.000 member firms throughout the country; the monthly general letter on current business conditions by J. 11. Tregoe, national secretary troasurer; participation In the benefits to be derived through adjustment bureaus throughout the country; protection against commercial fraud through the activities of the Investigation and prosecution department; the benefit of business data made public through the research department; the privilege of subscribing to the foreign credit interchange bureau; the educational benefits to be obtained through the Institute of credit: a certificate of membership which gains recognition in 131 cities of the United States: the privilege of consultation with the national office on any credit problem; the privilege of participating In nil State conferences and national conventions; the privilege of subscribing to tne Credit Man’s Diary; credit departmen, forms anil literature at cost; co-operation from the local office on any matter pertaining to credit; the privilege of attending the weekly gathering of the credit men of Indianapolis for the discussion of problems pertinent to credit granting; the privilege of direct interchange ot credit Information between members.

Asks for New Bids Bids for the construction of the proposed shelter house at Garfield Park were ordered readvertised for by the board of park commissioners at the weekly meeting. The lowest hid received when the Improvement was originally advertised last fall was $72,000, which was considered too high. Bonds to finance the contract will not he sold until after the bids are received. “COMPLETELY DISCOURAGED” la the feeling and plaint of women who are “ruo-down” eo low that work drags, head aches, back aches, dragging down feelings, dizzy,pale, weak,“everything goes wrong.” See what Dr. Pierce’s favorite Prescription has done for more than a million women in the last fifty years. V* Hat it has done for others it can do for you. , Gary, Ind.: —A couple of years ago I began suffering with women’s weakness. I had severe backaches, became very weak and nervous, could not eat or sleep well. I doctored but did not get better under the treatment. At last I began taking the ‘Favorite Prescription’ and it made a well woman of me and in less than six months I was stronger than I ever have been.” — MRS. SADIE WEIKEL, 837 Penn St. Send 10c to Dr. Pierce’s Invalids’ Hotel Buffalo, N. Y., for trial package.

y a Went Ad Magic M That a little Want Ad j&J will enable you to buy, ||s sell or rem property K| seems marvelous. But @j|j ,■ there ia no mystery about It. Bj? yS| The answer is that thousands fija H? see our Want Ada and from jO among them some on* Is E£9 j'J almost sure to want what you jg| [gfa have to offer. Read and Um Wan* Us la [|! Indiana Daily Time ||j

INDIANA DAILY TIMES, FRIDAY, FEBRUARY 18, 1921.

MR. THOS. C. HOWE IS CANDIDATE! (Continued From Fage One.) district, were there to look the voters over and be looked over. SPEAKERS AT MEETING. J. L. Kingsbury, president of the club, Acted as chairman and called upon Ed Jackson, Secretary of State; Mrs. Arthur R. Robinson aud Claris Adams, former prosecuting attorney, who could see “no criminal intent” In the stuffing of a jury box, for speeches. Impromptu talks were made by C. L. Hogle, manufacturer; Professor Putnum, dean and acting president of Butler College; “Bud” Corley, negro; F. M. Diclterman, insurance agent; Dr. J. S. Royse, R. F. Davidson, attorney; Charles M. Cross, real estate dealer, and who terme l himself a Democrat. Mr. Kingsbury said that tbe meeting symbolized a case of an “office seeking the man,” and said that the Meridian W. C. T. U. has adopted resolutions favoring Mr. Thomas C. Howe’s candidacy. Mrs. Robinson 9poke of the influence of women in politics and termed Mr. Howe one of “our most beloved citizens,” and stated that he has a “sterling character and of wonderful ability. He has the education and intellectual abil tty,” she said, “in addition to culture aud refinement. ’• DOES NOT NEED JOB. Mr. Thomas C. Howe will have to be shown that he can be of service. “Y’ou can't get him to run by throwing bouquets at him,” declared Mr. Hogle. Professor Putnam said the same, adding that Mr. Howe does not need the job for the salary it pays. Ralph Lemeke, county treasurer, former city chairman and one of the four men who, with the Indianapolis News, have exercised dictatorship over Republican county politics for the last four years, has been telling negro politicians who were inclined to favor another candidate, that Mr. Howe has $400,000, it Is said. “Bud” Corley, one of Irvington's negro “men or all work.' said that this should be termed an ’indoocement” meeting, that ho has known Mr. Howe for twenty-five years and “we have fought all kinds of political battled together.” Mr. Cross, the self-styled Democrat, said he came to the meeting to “make it unanimous” for Mr. Howe. TOPPLES CANDIDATE WITH COLLINS. The others e.xpressed like sentiments and the climax came when Claris Adams coupled the prospective candidate with Judge James A. Collins and apparently attempted to add a military record to Mr. Howe’s other achievements by asserting in a great oratorical flourish that he was the head of Butler College while an S. A. T. C. unit was operated there. He said that Mr. Thomas C. Howe is "just the kind of man that Roosevelt

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was.” A member of the club denied that Mr. Howe svas a supporter of Roosevelt during the life of the Progressive party. Hilton U. Brown, business manager of the Indianapolis News, occupied a seat in the rear of the theater and maintained a discreet silence. NEW APARTMENT HOUSE. Announcement is made that anew apartment building, three stories in height, of brick and tile construction, will be erected on the west side of Illinois street a short distance south of Sixteenth street by the Byram Realty Company.

New Suits—New Styles—New Fabrics All-Wool Pencil Stripe Worsted SUITS For Men and Young Men Q *L *25 MM Blue, black or brown in a variety of neat striped patterns. Included are /jij the newest double-breasted models, sale price $25 S All IU IP !i REDUCED TO Air WOO! uSl f i f Bl A and Overcoats iS* 4 II L——— —i Hart Schaffner & Marx Finest *9 Worsted TROUSERS r^—l For Men and Young Men b\ „/ 3 Men’s All-Wool (Worth $20.00 early last fall.) Tailored from the finest Trousers worsteds. Guaranteed to give satisfaction or money back. Former $6.50, $7.50 Sale price and §g.so qualities— Men’s and Young Men’s *3.95 Fine AH-Wool TROUSERS ** • = : ’s3*'.:= Worth $lO to sl2 Early Last Fall F®® C| i various patterns, also i 11/ 0 iridescent gabardines. Os fine velour finish cassimeres; blue, brown and green; ■*****. *T°-™ er 50 and neat pencil stripes; also all-wool gray worsteds of ex- ' £JH now . $3.95 ceptional quality. Sale price t li 7

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SHEETING, double bed width, bleached or unbleached; on yard JjC BLEACHED PILLOW TUBING, yard OQ wide, yard Z>oC BLEACHED SHEETS, "seamless,” strong, fine thread—81x90 inches, each $1.28 72x90 inches, each . ..sl.lO

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SHOE RETAILERS MEET MONDAY State Association to Be in Session Three Days. The eleventh annual convention of the Indiana Retail Shoe Association will be hield In Tomlinson hail Monday, Tuesday and Wednesday. Following each day’s business session there will be a program of entertainment. The address of welcome will be made by Mayor Jewett at the ope- in* business

DOMESTICS and BEDDINGS

BLEACHED PILLOWCASES, deep hems, extra special, on. each fait/C CROCHET BEDSPREADS, double bed size; pure white, good patterns; d0 OQ $3.00 quality, each.. BLANKETS, regular bed size; gray, tan or white (no phone orders), ex- dM QO tra special, pair P I .I/O

session, and the list of speakers Includes Edgar Hart, Indianapolis, president of the State association; Homer Beal, president Indiana Shoe Travelers’ Association; Victor Valle, Kokomo, National Shoe Retailors’ Association; Charles P. Coffin, president Indianapolis Chamber of Commerce; Dick Miller, president City Trust Company; Howe S. Landers, Indianapolis. The entertainment will Include a “Jazz Festival” Monday night at Tomlinson hall; “The Dark Night” Tuesday night in Tomlinson hall, and a banquet and dance in the Riley room of the Claypool Hotel Wednesday night. \

“Lee” Union-Alls for Men Sold Recently <£* pEf for $6.00 A Special at The popular work erarment for men, of heavy khaki, triple stitched rs*r seams, all strain points reinforced, 9 rip proof button holes, riveted steel /] ll AJ buttons, etc. Formerly $6.00 qual- A- ; f(_Qk\W* ity; extra special $3.75 Other Furnishing Goods yMrj, 'UjH Specials V HOSE FOR MEN, pure silk and silk \ f and wool; fancy and plain colors, seamless, fully reinforced, ribbed top, all h sizes; seconds of up to §I.OO qualities, J j _ extra special (3 pairs, QJ* Bn ® $1.00), pair “LAMBSDOWN” UNION TIES FOR MEN, silk SUITS FOR MEN, heavy faille (half silk), new spring fleeced, closed crotch, all designs, plain and neat figsizes up to 44; former $3.00 ured patterns, reversible, exquality, extra Cl 1Q tra spe ~ 9Qr special ..s£•!/ cial, each tn/C

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‘Black PonzP Bound Over to Grand Jury Samuel Bullnp, colored, 4112 Cornelius avenue, the “Black Ponzi" of Indiana?* olis, was bound over to the grand jury on a charge of embezzlement by Judge Walter Pritchard in city court yesterday afternoon. Bond wag fixed at S7OO. Bullnp was arrested Jan. 27 on a war* rant filed by Phoeba Davis, 2112 Wess Morris street, who charged embezzlement of $350. Similar charges are pending against Bullup in Criminal Court, it id said.

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