The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-02-26
DISCUSSION OF
WATER SCRIP FUND
COuncilmen Hear Auditor and
Treasurer.
NECESSITY FOR FUND
DEPUTY TREASURER SWAN Elk
PLAINS THE MATTER.

The council committee had under con-
sideration last evening the controversy
between City Auditor Reiser and the
treasurer's office over the propriety Of
keeping a special fund for the redemption
of water scrip issued when water pipe
laterels were laid. the scrip being redeem
able in water rates. The subject was gone
INFO thoroughly and at the conclusion of
the hearing it was decided that both the
auditor and the treasurer should prepare
an agreed statement of facts for submis-
sion to the committee next Saturday at
ternoon.
The matter was referred to the commit
tee by the council last Tuesday evening,
when Auditor Reiser sent in one of his
lengthy communications teeming with CT
tations of the law. Deputy Treasurer
Swan, who was auditor before he ser tCok
the OF zee and " no is now Ireasurer Mor-
MS DoOkkeeper, lhade d statement OF the
case saying that the fund Tor redemption
of water scrip was created with the tull
the treasury department had no interest
in the matter, so long as the account OF
this feature OF the cIJyS financial affairs
is kept correctly and straight. 81 better
way of keeping the account could be SuS-
gested he wanted to be advised.
As to making pOhucaI capital out OF the
subject, Deputy swan said he knew OF no
one who was making the capital unless II
be the auditor
Explained by Swan.
Swan is an expert bookkeeper, and he
illustrated the necessity OF keeping the
money paid in tor water pipe extensions
in a special fund He declared that the
item or unTedeemed scrip should be COW
cred with the amount or money in this
fund, so that all scrip redeemed in water
rates could be paid IN caSh INTO the water
works fund, which, by the ordinance au-
thOrizing the issue OF water bonds last
year, is held as guarantee specially Tor
the payment of interest on the bonds. Inc
deputy treasurer further explained that
the money Kept in the scrip redemption
fund is deducted from the city'S Dank
Overdraft Tor the general Iund before IN
tereSt Is charged
Treasurer Morris cOncurred in the state
mentS made by hlS deputy ana adQed MS
testimony that the auditor had fully con-
CURED in the action creating TINS Iund,
which on Feb 1 amounted TO S225Zl6-5l-
Auditor Reiser could not d1sprOve that
he had not cOnCuTTed IN the acton Wnen
the fund was created. He, however,
showed from his accounts that originally
a large part of the money that was turned
into this special fund came from otner
sources than from the moneys paid IN
from water pipe extensions, ana ne
claimed that $16,46193 now in the fund
properly belongs to the general fund he
also showed that when the water extern
sion taxes are collected and paid into the
scrip redemption fund the. expense OF
making the extensions is paid out OF the
In disa agreeing with the stand taken by
the treasury department, chairman Rod
ertsOn showed an opinion from the CITY
attorney that it is unnecesSaSV 10 keep
a special fund for redemption Of water
scrip. The chairman added the opinion
that there is too much technically in the
two departments in keeping accounts
with each other.
During the discussion it developed tina
there would be no harm done, as tho
members of the committee thought, IN
abOjishing the issuance of scrip Tor water
extensions, redeemable IN water rates,
for the reason tnat the city uItlIla ,IeIS
pays the cost of the extensions and only
the brokers in scrip are benefited by the
operation of the scrip issues
Auditor on the Rack.
At the close of the conference, Treas
urer Morris asked Auditor Reiser If he
did not think that his letter 10 the COun-
ell rejecting on the treasures office was
negative and then Councilman Fernstrom
offered the suggestion that the AUDITOR
might have to be subjected to the re-
Qulrements of the law
You lust start II severely on IItS u
fee" remarked Reisers' and you Will
have the services OF some extra CLERKS u
ssThat ought to have been done long
ago" was RObertsOn's observation
Then Reiser suggested that the water
scrip issues be abolished and Robertson
came back with a remark that the com
mittee had not met 10 receive any III
StruCtiOnS from MIN.
At this point FernstrOm wanted to take
I'D a matter in the auditors annual re-
port, showing his valuations on various
classes of city property, and to note now
he had therein recognized the outstanding
scrip covered by the money in. the re
demption fund, but RelseT would not lei
him look, saying it was not in the report
for the year, for he had not recognized
such a fund The auditor closed his books
I'D with a declaration that he would not
stand such interference any longer