Omaha daily bee., 1906-10-11
LOBECE MAKES HIS ANSWER
GomptrOllsr Replies to Asperiions by
Expert Accountant
hes UP LhrttEs RELIABILITY
us Attention 10 Certificate Of
Good HecOrd Given Him by
the American Bond
ing Company.

NpuiptIoHer Lobeck mas rendered the
gayor and city council a statement In an
swer TO the charges made by J. ". Gil
rhrist. expert accountant. who. in a report
published Monday. declared the comptrol-
l'r's accounts TO be in a bad state Mr.
Lobeck referred to the fact that last Jan
uary representative of the American
s5onding company examined his records and
Aid everything was in frst-ciass shape.
Mr.. LObeck brought into question Gill
christ's reliability in the matter and in
Vitsd the council and taxpayers to investi-
gate the office for themselves before pass
ing judgment on the report of Mr.. Gill
christ. Mr.. Bobeck's communication was
referred to the committee on finance and
claims. The Gilchrist report is still In the
hands Of the mayor.
Mr.. Lobecks answer follows:
OMAHA, oct, . lscj.-To the Honorable,
omaha, Neb.. Gentlemen--rhe statement
appearing IN Tire public ess as cinanatinS
IRON Mi. Jonn ". Gilchrist, tne expert
SccOuntant arc SO misleading as TO re-
quire this consideration al my hands.
-AmonS other tnlngs ne stated
Some years ago, after an unfortunate
condition OF ahairs had been discovered
IN the city treasurer's office very excel
tent system of accounting was established
IN connection with the treasurer onlce.
regret 70 say, however, that insofar
as the comptroler's oftce Il concerned,
mat system mas pidCllCdlly GtaStu 10 tNiSt
ana II the accounts OF the treasurer arc
round to be correct, It is because of tn
honesty and caretu.ness OF the treasurer
ana has employees and not because OF the
farcical auditing OF accounts as now em-
pioyed by the comptroller. ...
The latter 20. tion OF this statement is
so palpably faise that 1t requires only the
simplest inspection by any one to show
that the very excellent system OF ac-
counting then established in connection
with the treasurer's ofnce is now I'm use
by this department and has been In con-
slant use ance IT was established.
Mr.. Gilchrlst lays great stress upon the
, tarcical auditing of accounts as now em-
ployed by the comptroller" This statement
\ ean only nave been p. p.ompted by some
Wang other than, desire TO tell the truth.
Mr.. Gilchrist knows that the same system
OF chechinK As now IN use and as effectively
used as AZ any time since It's adoption by
the city. When l came into the office
more than three years ago. ] retained as
account of his experience, who had served
several years under my predecessor IN the
same capacity The other employees IN my
office are OF no less ability than those OF
my predecessor, and the statement made
that the system OF accounting has deteriOr-
tsS re- en nsnaS Of the no' bonding
panies. who are guaranteeing the treasurer
I and myself for thousands of dollars, no
iater than January 20 last checked up the
@-work OF my office on the system in use
and reported that Il vas up to date and OF
the best In use Snd il Mas 50 s,atsd a, tss
as being possible. and as having happened
in Lancaster county and Chicago, could
used by my office. as he well knows, and
why he should make q statement so mis-
leading am at loss to understand. =.
This expert says: The tax leugers IN
the comptrollers Office are absolutely in
correct and practically useless and only
Mr. Giichrist evidently did not so con.
slider them from the dependence PLACED
upon them in his recent checking OF tht
TO date, are simply duplicates OF those KEEP
by the city treasurer and are made up By
my otflce force from the daily vouchers
furnished by the city. treasurer. These
vouchers are the duplicates of each tas
and other receipts issued by the treasurer
by him. In fact. we have a complete and
accurate check OF. eachs days business o.
his daily bank deposit slips. l have t,
countersign and make record Of each checl
drawn by him before he can draw dolla
treasurer makes to this office daily re
port OF his collections and expenditures II
From these the comptroler's record Il
. made and so far the treasurer's books ant
accounts have always agresd with those /
summary that must agree. Comparison
are frequently made and the statemen
that nearly year has elapsed since an!
comparison has been made is not true
AS 10 the operations of the scavenge
act and the taxes cancelled under IT, TIL
expert shows either a lamentable ignor
ance of its operations or grossly misrepre
sents. The. statement is made that IN
effort has been made by the comptrolle
to determine whether the calculations mad
by the county treasurer's clerks are cor
4, rect
This expert perhaps has not learned tha
r frequent reports are made to this of1ic
upon collections under this act by tn
county treasurer. who Is eN-o1ficio cler
Of the district court. that the collections o
taxes under the scavenger act are resul
OF judgment obtained by the city lega
department against certain lands and lot
for delinquent taxes. that the dferenc
between the tax due and the amount co
lected through the district court represent
the city's loss. Does Mr.. Gilchrist propos
to question the right OF a judge of the dit
trict court to determine whether the calcl
n, tlations made by the city treasurers clerk
are right or wrong? What III they ar
wrong IL the court renders Judgment an
the Judgment is paid and properly az
counted for, does not that settle the maj
AS to amounts certified by me to tn
treasurer being Incorrect, Il another II
stance of this experts unrelia ability. Tt
difference between the amount colecte
aud the total amount of the obligation
created Is the amount that has been tram
ferred and so certified by me, as Mr.. Gi
christ well knows.
Under the last section Of his report
There are numerous cases where III
comptroller has ordered interest on take
rsbated. an assumption of the powers {
the council
IL Mr. Gilchrist does not know .le ougf
to know that under section 1874, chapts
LXNNII of the statutes of the state
Nebraska. no one has power 10 refund
remit any taxes. and that TO do 80 woul
mako the one remitting same liable on h
bond whether he be Q councilman or an
other officer OF the city, county or stat
I trust Mr. Gilchrist does not hold n
pebponsible for his removal. nor hlamabl
II perhaps the finance committee or cit