Show WELLING 1 WILL EXPLAIN TO AUDITOR State Official i j Promises Reply k If Within 20 DaySi Dayi Andersen's Request Bequest Based Upon L egal Ad Advice vice From Chez Asks Ac Accounting Accounting- on n Disputed Funds Secretary of or State Milton Mllton H. H Welling Saturday 5 said ld h he would ma make e an ac accounting of funds und under r his administration tion lost to the state within the statutory time of 20 days Welling acknowledged acknowledge demand de des mand mend by State Auditor Julius C. C iAn An Andersen de dersen en for lor an accounting a and d settle etue- ment of due e the state by y saying such an accounting ng wo would o ld be available to proper authorities authorities' within the statutory period This means means th Welling that tw within 20 days must account for lor a repotted led shortage of 2454 in th the motor vehicle fund iund and other sums a leatto lost leat to the state through alleged lr under his his- his administration Disclosed in Audit The disclosures were made mad In an audit of ot motor vehicle and and other funds for a six-month six per period od in n Ander Andersen's ens en's demand was backed bYn by byan an an n opinion from Attorney General er 1 Joseph Joseph Jo Jo- seph Ch Chez z outlining the l leal al procedure procedure pro pro- I 1 have taken all ail steps the law says l lI I should Welling has hilS 20 days to make an accounting Until that is Js done I will have hav bo o m r comment t to make Preceding an an accounting Welling it vu vas understood w would uld r request qu t the ome of ot f his office records that were impo impounded by Andersen n eise during the audit Welling conferred Saturday with Chez vh law backing r A dern demand I. I t Tr Z W Waits Walts its SeU Settlement t Meanwhile Andersen's request fora for lor a special appropriation n of to audit audi Welling's Wellings s accounts b for lor several veral years prior to 1933 1033 remains remaIn before before s th the board of examiners with action no action expected until issues issues' r raised d by the recently completed audit are are settled etU d. d The total demanded includes an anas- anas shortage of motor ve ve- hide funds collected by Wellings Welling's office of of- fice Ice during the first six months of 1933 and In in unsecured state fu funds ds deposited Inthe J James M. M Peterson Pe- Pe terson bank of Wield which closed last March Transfer r Fees Feu Included The shortage Deputy State Auditors Audi tors and Ferrell Ferreli H. H.- Ad Adams set forth in their audit of of Wellings Welling's accounts for the six months' months period beginning January 1 1933 in- in eludes 1356 1256 received in 1 transfer tees tees' by Wellings Welling's office but not remitted to the state trea trea- surer It It also in includes ludes a a 8 90 item representing se ting monthly payments of ol 15 made to Welling by a local automobile association for furnishing lists of new and used Th The money Well ing lag admitted was admitted was given to George A. A Seaman then his chief deputy The Continued on Pace rAce Two REPLY Y PLEDGED IN CAPITOL ROW eIting Promises to Answer An Andersen's fersen's Demands for Accounting 4 Continued from Pace Pue One auditors asserted the money belonged to the ute state and should have bave been remitted remitted re re- to the treasurer Commenting on the unsecured bank deposit det Welling explained the mone money W was deposited by his Richfield 1 agent during the issuance of 1933 license plates last year and represented motor motor motor mo mo- mo- mo tor vehicle collections during the period He declared all branch managers man managers man man- agers of his office were covered by bond and later submitted proof of this assertion The deputy auditors expressed con con- the state could force sureties sureties' for lor Welling who was bonded for 01 to make restitution of an any sum wm lost through mismanagement or otherwise either at the branches or main office of ot the secretary of state Andersen's detha dema demand d upon Welling was backed by an opinion from Attorney Attorney At At- torney Gen General ral Joseph Chez who called the auditors auditor's attention to the state tate l law w applying in Instances where a state official foiLs fails to render a proper accounting of funds collected by him Under th the law Chez Ches advised Andersen An dersen dema demand d for zilch such funds must be bt made upon the official by the auditor auditor audi audi- tor and if it the accounting is not made madeS within 20 days damages in the amo amount S of 25 per cent of the sum due shall I be bc added with wilh interest and the necessary ary sary legal action taken to collect the totaL Legal Action Explained The legal action it was understood Would constitute a formal demand upon Welling's Wellings bondsmen for lor the amount due In the event the secretary of state refuses to make good Meanwhile the board of examiners of which Welling WeIling is a member withheld withheld with with- held action n on Andersen's request which he recently renewed ved vigorous vigorous- ly for a 1 special appropriation of to conduct an audit of Wellings Welling's entire entire en en- tire administration of the motor vehicle vehicle ve ye- hicle hide and nd other funds It was understood no decision would Be tie made by byth th the board on this phase of the investigation until the controversy controversy contro contro- versy over over the preliminary audit has been settled I Welling Has Custody Of State Bonds State Treasurer A. A E Christensen ChrIstensen revealed Saturday that In spite of a state law which constitutes the state tr treasurer sUrer custodian of the bonds of all state o officials the secretary of state has las had custody of all important state Elate securities for several years Secretary of State Milton H. H Well WeIl- Ing ng questioned question d about th the revelation admitted such a condition exists but explained the state board of ot examiners ers was cognizant of that fact and by mutual consent had agreed d that Inthe in inthe inthe the interests of efficiency the bonds should remain ir lit iii his bis custody Welling said he has h had d custody of all aU state bonds including his own and nd those of oZ his since he took office oUke in January 1929 Law Stipulates Treasurer v Section 65 2 of the revised U Utah h statutes invests custody of all official cia cial bonds bonds' with the state treasurer excepting his own which is held by bythe bythe bythe the secretary of state Recording of official bonds under the law however how how- ev ever r it was pointed out is a function unction of the secretary of state Christensen said he h has lS never ne had custody of the bonds of state officials I since rince he took office five years ago He Be said he called caned this situation to the attention of the board of examiners two years ears ago but that the bonds were never transferred Welling explained that in view of the fact he had the duty of recording record record- lug ing the bonds and that other statu statutes state de that certain bonds must be filed moo with the secretary of st state te the board of examiners f agreed it would be inthe in inthe inthe the best Interest of efficiency to perS permit per- per S mit snit the bonds to remain in his cusy cus- cus tody y S Welling s 's Bond Welling further said so far as he knows ws bonds of ot state officials always 1 have I been en In the custody of the secretary secretary sec sec- of state S Records at th the capitol show Welling WellIng Well Well- ing lag while administering the motor vehicle gasoline tax and other state funds was bonded for lor George A. A Seaman former chief deputy of Welling the cashier In Inthe the secretary of states state's office and others who handled funds also were cre bonded 5 Bonds of each also were obtained obtained ob oh- tain d for managers of the eight branches of the secretary of states state's office during the period of the year when state motor vehicle licenses were were being issued Welling reve revealed Each Pays ays ays Premium These Thee bonds he said on which premium of 2 50 each was paid cov covered ered the period from rom February 16 to I March 5 each year when the license plate rush occurs Welling pointed out that the b bonds for branch managers in his employ S protected the state against all aU loss for any ani reason He Hc also aho called attention L to the fact act th that t he had further safeguarded safe safe- g guarded the motor vehicle le fun funds s in is L his custody by obtaining burglary insurance in for the branch offices totaling totaling total ing |