Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1894-06-14
THE AUDITORS INGENIOUS pRETEXT

b0hthb vi thb ItftfL anu 5tWGE btUhTN-
ment, is city Money. to be Used as
Council May Direct-The Law Does Not
Warrant This Construction--As IL Fact
the City Council Ran Short and is Ille-
Eaily Using the M0noy-Reckless Finan-
ciering.
1thas been a notorious fact for the past
Gil is short in its funds for the needs of
current city expenses for the present
fiscal year. That amount just now is
somewhere in the neighborhood of
$50, 900, and by tho close of the current
fiscal year nobody knows how much
more it may be.
! he shortage has just been made all
right on the surface by Illegally taking
the sum Of $4,000 from the Street and
Sewer Department fund aud placing it
in the general current expense fund of
the city.
This is clearly demonstrated in the
fact that in the estimate for expenses
for the coming fiscal year, City Councils
Republican finance committee hat the
hardihood to place among the items to
be provided for, an item of $4,000
which is TO rccoup the Street Depart
ment for the money taken from the
funds of that department.
The excuse made is that the money,
which was derived from the sale Of
bonds for street paving under the enact
ment passed by the Legislature in 1871,
authorizing the city to borrow $500, 900,
is city money until paid over to the de-
partment.
AUDITOR BILLANY's EXCUSE.
A representative OF The GAZETTE
interviewed City Auditor II. H. Billany
last Saturday and showed him the
passage in the law which says:
All money borrowed as aforesaid for
the purpose herenbefore named shall be
placed ON special deposit by the said Board
of Directors of the Street and Sewer
Department of the city Of Wilmington.
Auditor Billany stated that the sum
Of $50, 900, the proceeds Of the last bona
sale, less $4,000, already paid over to
the Street aud Sewer Department, that
is to say $35, 900, has been placed in the
common treasury of the city for current
expenses and Is drawn against as such.
Until the money!" Mr.. Billany added,
"is turned over to the department it is
the city's money, and naturally goes
into the general fund. If you examine
the law you will see there is no pro-
vision as to the exact time that il shall
he turned over to the department. They
have never had this $35, 900, so il Is not
theirs. The department knew they
would have no use for this money and
consented to allow the city to use it for
its current expenses. For that reason |
don't think the law has been broken, for
| tI,a Inns hnntt y,otA ~ = n
department.
"Whenever sales of bonds are made
for the city the purchaser turns the pro-
ceeds over to the city treasurer, and he
Immediately deposits in the Union Ma.
tional Bank to the credit of the city
current expense fund.
at would be poor fnanciering, con-
sidering the city is in need of money, to
borrow or create loan to meet its
shortages, and to pay interest on that
loan, when it had money at hand prac-
tically its own.
"rhe Street and Sewer Department
has more than enough money 10 meet
all its expenses to July LIST. Its bank ac.
count to-day July 0th) shows a current
credit of $l3,77l.03. and special de-
post account of 20,047.S0. Now the
city's revenues are falling short. Ways
and means are necessary to meet the
current obligations. Here is direction
to meet the ciIy's obligations without
borrowing. II should be- remembered
that 1t is the city's money, never turned
over to the Street and Sewer Depart
ment."
FALSE AND FALLACIoUs.
| h,,l,N,,n DtI1.,,.l. II.
| above, is untrue and untenable. Under
the law, the City Council had absolutely
no right to touch the money derived
from the sale of bonds, other than to
draw all order for Its payment to the
authorized agents of the Street and
Sewer Department There is no author
ity in law for the deposit of this money
to the city's general fund account and
for its use for current expenses of the
city.
The plain statement of the situation
is that the City Council, by failing to
make the tax rate for the current fiscal
year large enough to meet the appropria-
tons, has created deficiency. This
deficiency it is now sought to cover by
illegally taking the proceeds of loan
especially authorized by law for the
benefit Of the Street and Sewer Depart
ment, not dollar of which the City
Council has right to spend, even with
the consent of the Street and Sewer De.
partment. The latter body has no right
to dispose of this money in any such
manner.
The City Council is defaulter. 1t is
using money that belongs to other
parties, and there is also doubt as to It's
authority to pay this money back out OF
next years revenues, a5 it proposes to do.
Drexel Institute Visitors.