Loading...
HomeMy WebLinkAbout1953-07-13 'J.....C' ~.Ino Bozeman, Montana .July 13, 1953 This spedal emergency meetinc was called on account of information furnished by A. J. Kalberg and Harding; Hanson, Examiners from the State Examiner's office, who have connnenced the annual audit of the books and accounts of this c:i.ty and who, in their audit, have discovered a}iparent discrepancies in the bank accounts. Present were Mayor Secor, Commissioner Erwin, Conunissioner Lowe, City Manager Henderson, City Attorney Lovelace and A. J. Kalberg and H. Hanson and the Clerk, when the followine; proceedings were had: Mr. Kalbere; pointed out to the Corrunission that, near the close of business on Saturday, July lL 1953, in the course of their audit, he had come to checking bank statements. On the statement of the account for June of the City of Bozeman with the Connnercial National Bank he found numerous erasures and apparent changes and the statement was apparently not in order. On checking with the bank, it was found that the statement on file in the City Office had been altered in numerous cases, several checks had been paid by the bank for much larger amounts than was shown by the altered statement, and six checks of large denomination shown by the correct statement from the bank were missing from the cancelled checks on file with the statement at the city office. There was also shown on this altered statement that a deposit of $8,000.00 was made to the account of the City of Bozeman whereas the actual deposit made was $38,000.00. Further check on this date by Mr. Kalbere; and Mr. Shadoan at the Security Bank and Trust CompaI~ showed that a check for $38,000.00 had been cashed on the City's account in that bank on June 6th, 1953 but was not shown on the books of the city and apparently this was the check which made up the deposit of like amount in the Commercial National Bank on that date. From all information available up to this time and presented at this meeting it appears that. until the audit now in process is completed. an exact amount of and full information on discrepancies cannot be given but that, from present available information. it appears that there may be a shortare in city funds in excess of Sixty Thousand Dollars and that this shortage appears to have been brought about by illegal manipulation and misappropriation of funds in the bank accounts of the City of Bozeman by Donald L. Hendry, Cashier and Water Collector. The Commission was further informed that Donald H. Henry has been absent from the city since on or about July 4, 1953 when he supposedly went to Seattle to seek medical aid from a specialist on a chronic bone ailment. Mr. E. L. Heidel of Heidel-Vandenhook Agency, agents for the Hartford Accident and Indemnity Company who wrote the bond covering D. L. Henry, and Mr. H. C. Skarie, agent for the United States Fidelity and Guarantee Company who wrote the bond covering L. G. Shadoan, Director of Finance, were called into the meetinr~ and given verbal and preliminary notice of the situation. They were informed that. as soon as full and detailed facts have been established. they would be given full information on the situation. In the absence of M. J. O'Connell, County Attorney. Joseph B. Gary, Deputy County Attorney. was called into the meetinG and all known information on the case presented to him. Rased on the known facts, and to make it a matter of record in these minutes of this Commission meeting, it was moved by Conunissioner Lowe, seconded by Commissioner Erwin. that the County Attorney be requested to file an information in the District Court of Gallatin County, with the least possible delay, charging: Donald L. Henry with grand larceny or embezzlement or such charge as he, the County Attorney, deems advisable from the known circumstances and a warrant secured for the arrest of the said Donald I.. Henry BIld the motion was carried by the followinr; Aye and No vote: those votinr; Aye being Mayor Secor, Commissioner Lowe. Commissioner Erwin; those votinF, No, none. I I I ')57 I..t The County Attorney was requested to give irmnediate notice to the F'. R. r.. to secure their aid in the apprehension of D. L. Henry. After complete discussion of the matter by the City Commission, it was moved by Commissioner Erwin, seconded by Commissi.oner Lowe, that A. J. Kalberr and Harding- Hanson, Deputy State Examiner, who are conductinr: the audit of the City's books and accounts, be requested to assume supervision I of the cOEduct of the office of Director of Finance of the City of Bozeman and of all financial transactions of' this City until such time as any and all discrepancies in the finances and financial operations of the Ci ty are determined and cleared to their satisfaction and the motion was carried by the followinp; Aye and No vote: those voting Aye being Mayor Secor, Commissioner Lowe, Commissioner Erwinj those votinp,; No, none Adjournment There being no further business to come before the Corrunission at this time, it was moved by Commissioner Erwin, seconded by Commissioner Lowe. that the meeting; adjourn, and the motion was carried by the followini"; Aye and No vote: those voting Aye bein!" Mayor Seco r, Commiss ioner Lowe, Commiss ioner Erwinj those voting No, none. - __---16-12 I ~ Attest: I ~~~. Clerk of the City Commission I