Wheeling Sunday register. [volume] (Wheeling, W. Va.) 1882-1934, 1901-04-14
MUNICIPAL ACCOUNTS
ARE WONDERFULLY KEPT.
SOME REMARKABLE INSTANCES OF
LAxITY DISPLAYED IN CHI
CAGO'S CITY GOVERN
MENT.
MILLIONS UNAccoUNTED FOR.
SUGGESTION OFFERED FOR EME-
DYING THE MOST GLARIN
DEFECTS.

-
NEW YORK, April 13.-Some time
ago Messrs. Haskins and Sells. public
accountants of this city and Chicago.
We're engaged by the Merchants Club,
of Chicago, to make an examination of
the accounting methods of the city of
Chicago. On March 21-of this year the
accountants transmitted to a special
committee of the Merchants Club hav-
ing the matter in charge, a report
which gave in full the result of the
firms investigation and which set forth
in detail the present system of ac-
counting in vogue at the Chicago city
hall and the assets and liabilities of
the city, as well as the list OF officers
of the different departments of the city
government and their salaries, and also
the cost of administering this govern
ment.
To-day there was issued by the firm
of accountants a letter supplemental to
the above report and addressed to the
Merchants Club. This letter says, in
part, that the municipal authorities OF
Chicago aided the investigation in
every practicable way and that the ac-
countants found the accounts OF the
city in a deplorable condition. due
mainly to the survival of methods of
control and record utterly inadequate
to the requirements TO one of the great
cities of the modern world and that the
continued existence Of this condition of
accounts is evidence in itself of the
non-existence of any system of execu-
tive business audit and that no such
system has been made by the alder
men.
The letter then goes on to say.
1.-THE report shows that taxes to the
amount of five hundred thousand dol
lars a year for the past decade have
been released as loss and deficiency
upon the mere unquestioned word of
the tax gatherers; that payments of
mileage and license under the fran
chise law, when offered at all, has been
accepted without audit; that vouchers
have been paid uncertiied; that sub
sidiary special assessment ledgers have
stood both unbalanced and unverified;
that 1larinaI arrArc rrtnh a- ,1a@tt-x
hundreds of thousands of dollars. have
remained uncorrected; and that books
of record have been destroyed.
This incompatibility Of the depart
ment methods with another is ex-
emplified in a discrepancy Of more than
four million dollars in the total value
of the municipal water works as shown
by two sets of the citv's books.
These faulty methods have led 20
forced balances, a %frequenc Jumping Of
accounts, wholesale omissions. arbi-
trary entries OF millions of dollars each
credits in anticipation of money ex-
pected, and the like; ami are respon-
sible for the possible duplicate payment
of claims against the municipality and
for the direct official statement shown
by the report to be questionable that
the city debt has been re luccd more
than n and a half milliol OF dollars
during the past two years.
AS a general result OF the prevail
ing confusion on the balance sheet is
incomplete; the civic body are in the
dark as to the condition or the wants
OF the treasury; officials OF whatever
party are brought under a cloud of snT-
picion; and a vague charge OF incOm-
potency is allowed to lie against a city
otherwise celebrated lo- the business
ability of its inhabitants
Many reforms have been attemDtef.
some with a degree OF Success. but an
serving 70 emphasize tie need ~ a
modern uniform system OF accoUnt8 and
an Improved financial admlaistra-
ton"
A series OF reforms believed TO be
entirely practicable are suggested in
the report. They begin with improve
ments nearest To hand and look 10 the
financial municipal unity OF greater
Chicago. The changes Indicated, view
ed in the order of attainability. con-
template action. first and Immediately
by the city authorities; secondly. by the
Legislature, and thirdly, by a. consti-
tutional convention.
The letter of the accountants then
calls attention to the rapidly increas-
ing number of associations of citizens
which are graphing with the many
problems as how best to administer
local governments and mentions the
States wherein legislation for the
higher welfare Of the municipality IS
making Roadway against opposition.
Attention is also called In the letter to
the work of the national municipal
league.