The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-07-27
HOW CITY WAS HELD
Up IN WATER DEAL
Reckless, if Not Criminal,
Waste of Money Received
From Bonds.
ENORMOUS EXPENSE
FOR ENGINEERING
Money Thrown Away by Thou
sands by MOrris-Lynch
Administration.

The late Morris administration has
been charged time after time with vast
ing the money of the taxpayers of Salt
Lake, but the enormity of the misman-
agement of the administration has not
been known until yesterday, when the
report of Special Auditor Edwards was
presented to the Finance committee.
Recklessness IN expense, recklessness
and criminal carelessnes are shown
throughout the water bond deal which
the Morris administration negotiated in
order that it might Te-elect itself to
place. In this it failed, as the people
saw through the game and retired the
corrupt crowd from place.
Several weeks since, in accord with
resolution introduced by Councilman
Mulvey, Special Auditor J. William Ed
wards was employed by the Finance
committee TO expert the water and
sewer bond deal, and $1,000 was appro
priated for the purpose.
Yesterday Mr. Edwards concluded his
work and submitted his report. This
report, which was addressed to W.
lOuE VI iHo L lndntt
committee of the Council, is terrific
arraignment of the Morris administra
tion, the most extravagant, corrupt and
inefficient administration that Salt Lake
City has ever known. The report fol
lows:
Expert Edwards's s AIraignment.
In compliance with the resolution pre-
sented to the Salt lake City Council. by
Councilman NJ, e. Mulvey on May II last,
and approved by the Mayor on May IS
last. l have the honor to hand you here
with financial statement, showing re-
ceipts and disbursements, In detail. up 10
and including December 81. 1905 of the
funds derived from the sale OF $50 water
bonds, series Cd" and $50 sewer bonds
all at $1,000 each Also supplementary
statement. showing receipts and dis
bursements of said funds in detail. from
January l, 1906, to June 30, inclusive.
Receipts.
AS shown on the attached schedule, the
receipts amount to sl,0l5, 100, being $780,
900 received from the sale of $50 water
bonds at $1,000 each; s150.000 from the
sale OF 100 sewer bonds, at $1,000 each,
and SIS. 100 premium paid by the pur-
chaser of the bonds, The bid for the
bonds, on the above terms. was made to
and accepted by the Salt Lake City
Council on February q, 1905, by the
Mutual Life Insurance company OF New
York, through it's local manager, Mr.
Ruion S. Wells, and the money was ulti-
mately paid to the City Treasurer by the
United States Mortgage and Trust COM
pany of New York City,
In addition 10 the amount of 81. .015, 100,
the receipts in connection with the sale
of the above bonds were as iololws:
July Ia 1905 accrued interest. IS, 222, %
October 9. 1905, accrued Interest,". 222. 22
December 5, 1905. accrued interest 1,667-2I
December 81, 1905, interest from
local banks for bond funds on
deposit ...,.- ....-,.,- 2,261. IL
January Is, 1906, interest from
L. s. Mortgage & Trust company
for funds deposit ..,..... 4s.7s
Total ...,.... ..-...-..... 30. 4oo. 81
The above dates with the exception
of the item $43,7S) are taken from the
bank pass books, as the city records do
not Indicate the exact dates on which
either the principal or interest. derived
from the sale OF the bonds were received
by the city. The amounts are entered
respectively on the journal OF the CITY
Treasurer in gross (without explanation
as TO detaiD on July 81, October 81 and
December 81, 1905 These interest Items
have been credited TO WateTworks de-
partment and contingent fund and the
N'S '~|ND'
has been charged TO the same accounts
They do not. therefore, appear on the
attached schedule.
1t Will be observed. with reference TO
the first accrued interest item, S5222. %.
which occurs in connection with the first
sale OF 500 bonds. that there is dis
crepaucy between the amount OF accrued
Interest. as paid by the United States
Mortgage and Trust company. and the
actual amount OF interest due to the city.
The bonds call for the payment OF per
cent per annum interest. payable every
six months. from the first day OF April,
1905, which would make the amount OF
accrued interest on S500000 to July IA.
1905, $5777.77; as the city only received
Sb22222, IL would appear as IL the United
States Mortgage and Trust company still
over the city s555.56 on this item The
second and third sales OF go bonds EACH
we're made respectively on October .,
1906 and December s, 1905. AS the first
Interest coupons on these bonds matured
on October !, 1905. prior to date OF sale.
the United States Mortgage and Trust
company surrendered the coupons on
completing purchase, and the accrued In
terest on the bonds purchased on October
0 and December was figured at per
cent per annum from October l. 1908
On this basis. tho SECOND accrued Dtereat