New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1901-09-30
WATER FRAUD COVERED Up
ACCOUNTS COMMISSIONERS SEARCH
ING EXAMINATION" ATTACKED.
MERCHANTS ASSOCIATION REPORT SAYS
THE CITY LOSES THOUSANDS BY
FRAUD AND WASTE IN REG
IsTER's BUREAU

; IsTER's BUREAU.
''The value of the metered water delivered
TO consumers during the period 1s73-'oo. in
ciusfve, the basis of the reports made by
the chief engineer. wa. sI1,24s,1e2. During
the snme period the Water Register
counted for but s7I3s,78o. which sum In
Guides not only the amount actually col
iected ny him. but the amount city
and returned by him Is arrears. There is.
therefore. a discrepancy between the amount
apparently due the city I'm that period and
the amount actually accounted for to the
city of s4.107,372.-
This is only one Of many startling revelations
in the analysis made by Frederick B. De Berard
on the report Of the Commissioners Of Accounts
regarding their examination of the affairs Of the
Water Registers Office which was sent to Mayor
Van Wyck on September g. This analysis sub
Stimulates in a general manner the charges in
the grand jury's presentment on the Water De-
partment. made in November 1900. It was
submitted to D. LIE Roy Dresser president Of the
Merchants Association, published in pamphlet
form, and on SATURDAY. last sent, together with
letter containing resolution of the Board Of
Directors Of the crgarization to Mayor Van
Wyck
In November, 1900 the grand jury made
presentment charging, among other things that
the revenues of the Water Department were in
adequate and that the administrative results
were unsatisfactory. This presentment called
for searching investigation into the affairs Of
the Water Department, and the examination de-
volved upon the Commissioners of Accounts.
who literally applied the whitewash the
grand Jury's charges and placed themselves on
record as saying that the Water Register Bu-
reau properly conducted. Mr. De Berard's
report reveals startling inef1cency in the
management of :he bureau. and tends TO show
that the leI'urt of the c. n'missicrers of Ac-
counts is not only erroneous and fallacious but
that they suppressed essential evidence indi-
eating a general condition of fraud waste and
enormous diversion Of the proper water reve-
nues that TIE findings Of the grsnt jury set
forth in the report of the commissioners, are
garbed. and that the Commissioners Of Ac-
counts did not conduct the Searching examina-
ton" demanded by the presentment of the grand
jury.
In 1895 (under the Strong administrator, a
large number Of inspectors were discharged from
the Bureau OF Water Register for making false
reports. Mr.. De Berard says he learns on au-
thority which he deems wholly credible that
many of those inspectors have been re-employed
by the present Water Register. He further says |
there is much evidence indicating that many
premises having meters and subject to meter
charges are falsely reported by the inspectors |
These false reports are made by removing the |
property from the meter class to the regular |
rate class; by classifying the meters themselves |
that their dals shall record less than the |
quantity of water actually used. and by arbi- |
trsry average annual charges the ostensible |
meter readings being wholly fictitious and arbi- |
trarly adjusted 70 conform to the agreed |
charge. Mr.. De Berard says he has direct per-
sonal knowledge OF these facts.
According to his rapport a raeter was ordered |
placed upon certain business premises The in |
speotor reprcssated to the firm that toe annual |
rreter charges would he from $50 to $500. and |
SAID that for a bonus OF 5000 and the annual |
payment of SEQ. all annual charges would be |
paid. and the premises reported in the regular |
rate" class. Had this proposition been accepted |
the premises srculd have besn rated on the !
Water Registers books az about $40 year |
Mr. De Beracd alleges. the inspector would have
pocketed bonus of about $40 year and the |
city would have bean defrauded of about $40 |
a year, the difference between the meter charge |
actually paid S160. and the regular rate os |
about $40
Regarding the classifying OF meters to record |
less than the quantity of water actually used |
thereby reducing the cost to the property owner
and defrauding the city. Mr.. De Berard saws: |
The proprietor OF prominent hotel in this |
city, after experiencing the power OF annoyance |
possessed by inspectors, and being compelled TO |
pay blackmail 10 avoid frequent unfounded |
charges Of violating the smoke ordinance was |
visited by inspector of the Water Depart |
ment, who had in his possession the city seal |
whereby meters are closed TO prevent tampering |
The proposal was made to him by the inspector |
that upon the payment Of S1T5 he would open
the meter. falsify the register TO the extent OF
$3.50 by changing the reading Of the dial TO that
extent, and reattach the city seal after closing
the meter. thereby making detection OF the |
fraud impossible
Mr. De Berard expresses a firm belief that |
the city would realize yearly Cf the Water |
Registers office was conducted in a businesslike |
way) from s., SOC, 600 10 SO. 000.O0 more water
revenue than It does now. In referring to the |
fixed arbitrary annual meter charges he pre- |
sents by way of explanation the following tables |
collated from the records of the Water Depart |
ment;