Omaha daily bee., 1906-01-10
JENNINGS ANSWERS SMITH.
City Treasurer Shows Iniccurscies Of Safe.
msnts BY Demscrstis Candidate.
WRONG HANDLING OF FUNDS DENIED
wiilins Close Inspection Of City
Finances shouId ne Made, but
Insists a Ne Dene
Thoroushly.

Charges that City Treasurer Hennings
has not properly handled the funds of the
city in not taking up outstanding warrants
and saving interest, and that funds have
been managed for the profit OF the banks.
made by Ed p. Smith. democratic candidate
for mayor. at the Jacksonian club banquet
are explicitly denied by Mr.. Hennines.
Mr.. Smith is altogether wrong In the
conclusions he draws about city finances
from government bulletin No. 20 for 1903
To understand the finances OF Omaha one
must make personal and close examine
ton OF the methods in use and not permit
himself to be led into error. such as Mr.
smith was, by deducting from few totals
OF figures. which may mean anything or
nothing as related to conditions not
stated" said the treasurer.
The charges are so false and sbsurd
that they show on their face that Mr.
Smith was wholly uniformed as to his
| facts He displays profound ignorance OF
city finances and made grave accusations
which he cannot substantiate. In the first
place. he asserted that Omaha, at the close
Of 1909, had almost 100000 in city warrants
| outstanding.
Never Had So Large q Debt.
"The city In its whole history never at
any time had such a large warrant debt
Included in this estimate. of 100000 were
S15,Oo of special sinking fund warrants
| which we're lying in the vault of the treas
| urer. not drawing a cent OF interest, pend
ing cancellation by a renewal bond issue.
Besides this, there were more than SOC, 900
! worth of special improvement district war
| rants outstanding which could be paid only
| from the taxes accruing in the special funds
| against which the warrants were issued
1 no isyV 49,. lac. 40 ss
! not a good one. it Is not my fault.
Mr. Smiths statement that the city had
| $4,000 in the bank at that time lie correct
More than $4,000 OF this money was on
| deposit, representing liquor license money,
| which, at the request OF the school board
| was not transferred to the school fund until
January /, and none of which could be
| used for liquidating city warrants. More
| than $4,000 OF the money in the banks
| belonged to special funds which had bonds
| outstanding to be redemmed by the money
80 held In fact, this money will be used
| to assist in redeeming large issues of re-
newed special Improvement district bonds
maturing in May and June, 1906
Advocates Cash Basis.
1T always has been my aim to have the
| city run on a cash basis. May l. 1904, the
city discontinued registering warrants and
| did not resume the practice until February
], 1896. Since the city council discontinued
January /, 1906. paying debts Of former
years out of current revenues according to
| charter provision. the city had TO pay 1906
expenses out OF the 1905 tax levy. AS the
| taxes do not become due until May 1, 1t
| was necessary to register warrants from
January to May /. last year. Since May /
the city has been on practically cash
! basis. .'..... '.'..'.'
CAS- an illustration of how easy it is to
| misirterpret the real conditions from the
bank totals, I may cite the fact that jan
narys received over $4,000 which repre-
scented the proceeds of sewer bonds sold,
which had been, voted by the people. These
funds the treasurer must keep in the banks
until sewers are built and demand ocea-
stoned for paying out the money.
II am willing to have the closest scrutiny
made of my conduct Of the treasures
office, but 1 must ask that the investiga-
ton be thorough and not at long range"