Show m rOSS 5 SHORTAGE I l LAND ND OffiCE TAl JJ 1 4 ond nd Company Has Paid I and Commis- Commis lOner ner Will Contribute Con- Con tribute ute Balance Due Itri nal nl figures have lune been completed I I 1 I t e I embezzlement by S. S W. W Ross I or ft r cashier of the state land of- of Ice co show that the amount nt of its lis I lOftS aggregate This Thisby sown b by the audit of the land I the second one ono mapa made mad since i and which was filed with I Il l e tate auditor on Monday after after- ibn d m. m While the general accounting system sf of the land office is com com- ne ed and indorsed the audit Il ys I However the records of land and pm afi sales were ere so maliciously 1 i with Intent to defraud on lart of Mr Ross that It was im- im to regard them with any of certainty as reflecting t al transactions The system contemplates the of receipts and disbursements disburse disburse- ie ments ts and numerical receipts are ares s sued sed ed as payments are received ed on of ot sale The examination l lei aled that in some instances uni un- un i re receipts were wera Issued to persons who had paid money on tate land cei certificates or le leases ses without fl proper credit having been Ered red on the books in the state doffice office Letters were therefore to each certificate of sale older where any account would ini in- in i ite e any possibility of fraudulent From this method it was c that state funds have havee e en embezzled in the amount of 43 Of this amount astound to be on hand to be cred- cred to the account of ot Wright The American Surety of New York as surety for forr r Ross paid into the land com- com office which laves ijes ves a balance due the state of This latter amount will maid by Commissioner RECONCILED I In r the course of the audit which for for forthe the period begInning October 1 1920 InO and ending March 31 1923 Mr 11 Ross left the service of th the state a n. detailed check of ot receipts to the general funds of the land Jand office was made and reconciled with re remittances remittances remittances re- re to the state treasury Of the classed as general general general gen gen- eral receipts of the state land office during the thirty months of the audit peri period d OO in round numbers numbers num num- bers hers represents the Increase in the tho state school land principal account and collections going to the interest account of the same fund In the same period there thre were 2 classed as investment re receipts receipts receipts re- re of which was Interest interest interest inter inter- est going to the schools of the state state- and investments returned to the tho school dud and grant funds The audit included an examination examination examina examina- tion of the investment securities under under un der del the control of the commissioner and held at the Utah State National bank These se securities are listed Inde in de detail and segregated gated according to the funds front from which the Investment Investment investment Invest Invest- ment was made The resume shows that there are arenov arenow arenow now v In control of the state land commissioner for in investment investment investment in- in i vestment purposes and out at inter inter- estt estas as of last August 15 Of this a total of was invested in bonds generally of f a n. municipal character but including those of I ute Piute Reservoir an and Irrigation company as per special act of the legislature The remaining Is held In notes secured by first mortgages on improved farm property SCHOOLS BENEFIT Of this total of principal aCcounts accounts ac aC- counts belongs to the district district district dis dis- schools of the state which share In the interest derived In proportion pro prO- portion to school population More 1 I than 70 per cent of the first mortgages mortgages mortgages mort mort- I gages held by the thc commissioner or orI 40 belong belon to the school principal fund The remaining I 60 forms approximately 45 per ner cent of the bonds held by the state The proportion in bonds bonds' I would run much higher were it not that in this classification are placed 1 I the of ot the Plute project of which is principal and goes to the reservoir I Interest fund I Various state Institutions chiefly educational share in the remaining of the Investments in securities The University of at Utah has In round numbers of the amount in the fund derived from the I federal land grant for a state university university university uni uni- while additional comes to the same institution rom from land grants for a state normal school and the state school of mines The principal ac account de developed developed developed de- de from the grant for a state agricultural college now now totals Two hundred five thousand of the amount invested in nod notes is Is held for foreclosure though In at least some Instances it is announced satisfactory satisfactory tory arrangements have been made since August which make malte the foreclosure fore closure unnecessary There was an additional 1 at that time held for renewal In addition quite a considerable amount of ot this paper has the principal overdue the notes not having been renewed at the time of the examination Interest payments payments pay pay- ments are also overdue o on a n. considerable considerable considerable con con- portion of ot the notes INTEREST OVERDUE In this connection Commissioner stated that a compilation of the Interest payments overdue at tho the time he took office May 19 1921 i showed something like owin owing ow ow- in ing the state In Interest Careful attention has been given t to this phase of the land fund investments ta I with the tho result that last April tie the the amount had been cut to about The process is a slow one hut but progress is being made Where reexamination reexamination reexamination re- re examination of the security showed it to be ample much better results result are obtained by giving a note m maker ker time to meet his payments than by adoption of or any inflexible policy of throwing the lands given as security I into the open market through foreclosure foreclosure foreclosure fore- fore closure proceedings r The audit showed that the Ross operations were largely largel confined to appropriations of payments made on certificates of sale Some Seine however however however how how- ever were payments on water as assessmentS assessments assessments as- as and there was a shortage of 9 in the fee accounts which is charged to him since he was cashier cashier cash cash- ier at the time This brings the total to plus 76 in accrued Interest received by him but not paid into the state The commissioners commissioner's suspense fund gave the auditors some work The Carey act suspense is another another an an- other similar account which however how how- I ever has been utilized only olly for the I purposes Its name pame implies and it was found to be in good order |