Indianapolis Times, Volume 34, Number 289, Indianapolis, Marion County, 14 April 1922 — Page 14

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CHARGE REILY WITH MISUSE OF PUBLIC CASH Porto Ricans Severely Arraign American’s Conduct. SOME MONEY PAID BACK WASHINGTON, April 14. A lons story of the alleged appropriation of public money for private use is told in a copy received here of 'the recent grand jury presentment returned in Porto Rico against Governor E. Mont lieily. his secretary, John Uuil, and Auditor W. L. Kessinger. In asking the prosecuting attorney to prepare indictments against the three officials, the grand jury charged that they ail gave their approval to numerous irregular treasury disbursements for the Governor's recent trip to Washington, for nn inaugural tour through the Island and for other purposes. It is also alleged in the Jury's findings that public money was paid out and charged against purchases for the executive mansion in cases where the Jury is convinced that the material mentioned was “not purchased for official use.” In the case of the Inaugural tour, the trip to Washington and smaller items, the jury’s report says, the money advanced to Governor Reily by Auditor Kessinger was paid over on a warrant which stated that the sums disbursed were due the several payees, and which required no subsequent accounting. At other times, it was charged in the evidence before the Jury, the Governor drew “divers sums" from the treasury on similar warrants and “through simple letters signed by Secretary Hull.” Much of the money, it is set forth, was paid back to the Porto Rican Government by the Governor after the grand jury investigation began. The report says that the first knowledge of a surplus from the $3,000 advanced for the Washington trip was when the Governor appeared before the jury and “pulled out of his pocket $2,000 which he states was left over.” The Governor Is said to have explained that he tad not returned the surplus sooner because he was waiting for a complete record of his expenses during the trip.

CALLED ABSTRACT OF JURY'S REFORT. The grand Jury's report, as it was cabled to Resident Commissioner Felix Cordovia Davila here by Antonio R. Earcelo, president of the Porto Rlcua Senate, reads in part: “Facts proved by documents before us and sworn testimony are: “That the ovgrnor solicited from insular Treasury, $3,000, in the nature of advance for making official trip to Washington, going and returning in company divers persons * * * Governor himself examined and approved requisition and Auditor Kessinger authorized payment such funds and issued two settlement warants instead of two accountable warrants which would remain subject subsequent auditing and obligate persons who received funds to render accounting justifying same. • • • “Grand jury found said advances • * • were made in open violation of law and rules established by auditor's offee. In first place auditor, whose special duty is to care for disbursements public funds, as no record of any explanation having been asked concerning motive for said trip to Washington, did not try to verify how many persons composed party nor did he ask for official appointments such persons to know how mai composed commission • • * nor did it occur to him to ascertain whether or not there was any money left over. * * * “Things were done as if people of Porto Rico had been Indebted to the Governor in $.".000. SATS FORM I'SEfi WAS UNLAWFUL. ‘The form unlawfully used in this case and in theirs hereafter mentioned is that in which the auditor said: “ ‘My reasons for said payments are that I find that there is due the several payees mentioned upon the attached abstracts the amounts set opposite their names and that the disbursements for these payments are properly certified by tha department head or other official having charge of the expenditure and are submitted for payment and proper receipt thereon of each draft enclosed.’ "It Is clear that there was no such Indebtedness because Insular Treasury was Owing nothing to Governor. * ♦ • The Governor has not rendered the account of the disbursement of said .$.".000 and he understands pursuant to evidence in possession of the grand Jury that he is under no obligation to detail and prove his expenses, but only to make general report of disbursements. “The Investigation of this grand Jury went to bottom of the affair, and In consequence of questions propounded to the Governor, who returned from the States, Jan. 26, he pulled out of his pocket, in presence es jury, $2,000, with which he states was left 1 over from his trip to Washington, and it was from that amount that knowledge was had of the existence of such surplus. BONNER REFUSED JO ACCEPT MONEY. “Ex-Auditor Bonner swore before the Jury that when before a trip to Washington the Governor offered him money out of the public Treasury for his expenses, he refused, because he understood be should pay bis expenses out of his own pocket. • * The Governor explained he did not turn in the tWrplns sum because he was waiting for Bonner to render to him on account of his expenses, and on this the Governor based the fact of having kept $2,000 remaining and of not having returned same to the Treasury, as the Governor alleged he had no knowledge of Bonner's decision until March 20. '‘The Governor on Aug. 1 anl Oct. 20. 1921, requisitioned Insular Treasury to issue in favor of Hull, his private secretary, two items of S3OO each in the nature of an advance for expenses of the overnor in his inaugural trip through the island. This requisition for money was examined and approved by the Governor and certified by Hull as necessary

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Dr. Herbert Bryson, left, is accused of killing his wife at Cassville, Pa. Bruce Haines, Washington chauffeur, says the woman known as Bryson s wife was his wife and that no divorce was affected before she went to live with Dr. Bryson, u hero of the Rainbow Division.

for public service of Porto Rico, and disbursement thereof was authorized by the auditor. “The same as in the case of the $3,000 specified in paragraph 1, the auditor made this operation as if people were owing SI,OOO 10 Secretary Hull, and paid with a settlement warrant instead of an accountable warrant. * * * In making the aforesaid advances to Hull the requirements of law have been dispensed with. HULL RETURNED $419.10 BALANCE.. “Out of the SI,OOO received by Hull, he returned on November 21, 1921. $119.13 without rendering any account as to the balance of SSSO.S3. When the grand jury began this investigation, then Secretary Hull, pursuant to information of the auditor, sent to the latter vouchers which reached the autdior's office on March 19, 1922. "In connection with this came the inaugural trip of the Governor and his party through the island, the bureau of supplies and transportation collected a heavy sum for automobiles furnished the excursionists. It is inadmissible even for one single moment to allow the use of the funds of the people of Porto Rico for the payment of pleasure trips in the island and hotel expenses for private individuals. • • • “It is seen, therefore, that thousands of dollars have Issued from the public treasury without difficulty, said sums having been Issued as advances and without complying with the formalities: • • • that, according to documents in possession of the grand Jury, the Governor requested the au.ditor, through simple letters signed by Secretary Hull, to reimburse him, the Governor, from the public treasury divers sums of money said by him to have been unduly paid out of his private fund. * • • The months eovered by this investigation other items amount to over $1,300. "In requesting this reimbursement, the

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Governor explained and npproved and the auditor accepted as correct that such funds should issue from tHe public treasury without further requisite as they did issue in the form of checks, latter to become the private funds of E. Mont Reily to the credit of his personal account. “Thus things went on for several

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! months until on March 10 last when this i grand jury, being already engaged in this investigation, a personal check of Mont Reily reached auditor's office together with letter dated March 4, last, for $1,449.03, returned by Kelly to the people of Porto Rico as reimbursement, which amount up to the aforesaid date had been in possession of the Governor, and thus the people of Porto Rico recovered from Reily a large part of the aforesaid reimbursements to the Governor. “This grand jury has before it several documents of the auditor's office ns to accounts paid out of the public treasury on divers dates for goods amounting to over $i ; 00. Because of the proximity of the consecutive dates of the requisitions, the frequency thereof and the kind of good purchased, this jury has come to the conclusion that these goods were not purchased for official use, and that thereto. charging same to expenses of paid for out of moneys of the people of Porto Rico. “The documents examined are documents of requisitions certified to as correct and for official use under the signature of Secretary Hull and approved by Governor Rally and payments thcro-

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for authorized as correct by Auditor Kessinger, the treasurer of Porto Rico having issued the checks appertaining thereto, charging same to expenses of executive mansion as authorized by auditor’s office. This jury believes that such amounts should be refunded to the treasury." Joy-Riders Leave Stolen Automobile Joy riders are believed to have been responsible for the theft of an automo bile belonging to T. N. Renick, 826 East Morris street, from its parking place at Vermont and Pennsylvania streets. The machine was found abandoned today at Bethel avenue and the elevated tracks. Plan Convention of Credit Association J n. Tregoe, national secretary of the National Association of Credit Men, will be in Indianapolis tomorrow to confer

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