Indianapolis Times, Indianapolis, Marion County, 17 January 1947 — Page 9

Audit Indicates $121,000 Is Missing

By DANIEL M. KIDNEY Soripps-Howard Staff Writer WASHINGTON, Jan, 17.-8hort-age of an estimated $121,000 in the accounts of the house sergeant-at-arms’ office may close down one of the nation’s most #8 unorthodox bank-

Mr. Kidhey spection of the bank, nor did it carry deposit insurance, The whole thing was built on a sort of brotherly-love basis. Controllery General Lindsay Warren's audit, requested by the new Republican sergeant-at-arms, William Russell, may end what has amounted to a political bank operated by patronage appointees. Here's how it worked: At the beginning of each year congressmen were asked to sign in advance 12 monthly receipts for their salary payments, minus the withholding tax. Plan Caused Trouble

Each congressman then eould draw’ his monthly salary check on the U. 8. treasury through the sergeant at arms’ office. But an alternative plan, the one which has - caused the trouble, was to let the salary checks remain with the sergeant at arms and draw checks on his office just as though it were a checking account in a bank. That plan offered this advantage —& ‘congressman short of funds could draw up to three months’ salary in advance. Supposedly this was to be covered by a personal note, But being under the jurisdiction of neither the treasury nor the national banking system, there ‘was no audit made of the accounts. The shortage, which was brought to light when Mr. Russell of Pennsylvania took over the office from Democratic sergeant at arms Kenneth Romney of Méntana, is ex-

* ute provides that a $50,000 surety bond must bé provided by the sergeant st arms with two ‘signers approved by the Mr. Schwabe intends to introduce a bill providing for one of the Washington banks to establish a

branch office at‘ the capitol with! '

congress paying the tellers. No such checking system exists] in the senate. |

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