Questions submitted August 17, 1922 as to the OSS San. Antonio offiso. Answers as of September 19, after audits and investigations.
Q, Are moneys banked and checked out with proper regard to constitutional requirements?
A They aro improperly banked. Early in. March, to gain, control of finances, deposits were discontinued at the legally adopted bank, '-'a and all nionoy was deposited in the Commonwealth Bank subject to the signature alone of Dr. Fred B. Johnston, The constitution and by-laws roqufie the signature of the president and the treasurer. This change established a working control by Dr:: Johnston and D.B.Ooip of all moneys that came into their possession and a leverage for their intrigneC end misrepresentation in efforts to use the organization for personal benefit, fit
crAvt-y/a
G; Are the books and accounts clearly and carefully kept?
A A complete and clearly kept set of books exist; from the beginning 1919, to the departure of H,3.Ayres for the East; since then no correct accounts have been kept. The auditors, reporting to July 1©, 1902, found the cash and accounts did not balance, and there are no properly balanced books now. The discrepancies of July report are still unaccounted for. Additionally, statements sent from the Bast have not been entered, the payment by H.B.Ayres of $250 00 for rent, and 050 ©9 for letterheads, aro not entered, and. when D.B.Oolp was required to submit itemized statements for his drafts for nearly 0*1200 00 for expenses it was shown ho had overdrawn 01©© Clifton George was charged twice for the same item, otc, etc. Nothirg at present is provable,
Q Are old accounts paid in reasonable order, as money comes in, or- are funds used for the operations of certain individuals?
A Accounts have not been paid with due regard to their character or proper business attention. The money has been used for tho operations of the usurpers, 10,000 history booklets, for instance, were used to gather in money, but tho balance due on that account was not paid. Until the last three months, no attempt was made to pay rent. $250 0© paid by H B Ayres saved their being dispossessed. False statements were made to avoid paying standing accounts while the moneys Collected as the result of tho materials and service those accounts provided were wasted on excessive commissions, traveling and other expenses.
Q What is the character of contracts made with solicitors in the field?
A No contracts, no written agreements, no standards for commission payments or compensation. Shrove was paid 75/ commission and given tho OST car; Thompson was paid ©5/ and furnished his own car; Reddrick was paid 33 1/3/ and paid car mileage; Francis was givon valuable privileges and given authorization to collect (and apparently keep) moneys in the name of the OST. Shreve denies the claim of Ur. Golp that lie was to pay 1/2 the cost of printing the maps and travel information for which ho collected some 33300 00 Thompson files claim for 3806 16 while Cclp claims he is paid in full. Reddrick was sent out soliciting after tho return of H.B.Ayres, and a weak attempt was made to protect his work from blunders, but damages aro resulting nevertheless. Francis managed to charge bills to the OUT, leave an unpaid garage bill and a bad chock for (possibly) the OST to pay. Fortunately hi3 recall by H.B.Ayres prevented further damage.