Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-07-14


pended AT least 81 coo In connection with
the selling OF bonds and other matters
taking him out of the district While
| your committee recognizes that some of
these services have been performed. we
| do not feel that we have any authority
TO allow this claim
In justice to Mr.. Parkinson, your
committe desire to say that out of the
| sum 90 money due from Mr.. Parkinson
TO the district, quite a large sum Is
| for money due him from the deputy
| treasurer and other officers of the dis
| trict, and also some taxpayers whose
notes he has accepted in payment OF
taxes. OF course your committee can
not accept the responsibility OF any
| one except Mr., Parkinson, and there
| fore hold him for the amount.
WITHOUT PREJUDICE.
And 1t is further understood between
Mr.. Parkinson and this committee that
| In making this settlement, it is made
without prejudice against Mr.. ParlSln-
son claiming credit from the district
| for any amount he shall hereafter show
TO be justly due him, or for the district
to claim any charges that ii shall here
after show TO be justly due it.
TO- President A. ID. Henderson and
the auditor have adjusted the claims
standing against Mr.. Henderson upon
the books and after proper credit, we
find that there is at present. nothing
due the district from Mr.. Henderson
II. We find that certain of the bonds
belonging to the district hereinafter
| mentioned are now In the possession
| of the bank of Malad. Upon investi-
| CATION we find that Mr. Henderson
| claims that the Indebtedness for which
| said bonds are held as collateral. was
| incurred in 1906 at q time when the
| district was in need of money, and was
made for the purpose of assisting the
district, Mr.. Henderson also claims
that the loans We're used in good faith
for the payment of district warrants
and obligations. and without any pro-
tlt 20 Mr. Henderson, who is still re-
sponsible personally to the bank for
certain Indebtedness amounting TO S.
900 or over. Mr. Henderson claims TO
have outstanding district warrants suf-
f1cient to cover said Indebtedness.
While MIR. Henderson has been pres
ent with the committee upon several
occasions, yet he was compelled to be
| absent from us at the concluding ses-
| sion of the entire committee. and there
| being still some questions that should
| be investigated, we recommend that
| this entire matter be referred for
final adjustment TO the subcommittee
hereinafter mentioned.
Is Your committee have had under
Marion Henderson. Mr.. Marion Hen
derson appeared before your committee
and claimed that at certain time the
district requested him to quit his con-
tract, because they were unable TO pay
him. This he consented to do as an ac-
commodation to the district providing
the district would assume a certain in
debtedness at the Malad bank, amount
ing to S6,i50. Mr.. Henderson has since
had warrants issued TO him for the
amount due him, but he offers to return
for cancellation to the district warrants
equal to the amount of this indebted
ness at the Bank of Malad Your COM
mittee has been unable to reach any
definite conclusion upon the claim of
Mr. Marion Henderson, for the reason
that unfortunately In the midst of the
investigation, Mr.. Henderson was taken
seriously Ill and has not been able to
complete the examination with this
committee.
ACTION NOT WARRANTED,
49, We find that S27 100 worth of third
series district bonds are now In the pos
session OF the Bank of Malad as coll
lateral for security on the Henderson
notes These bonds were placed In the
possession Of the bank by the action of
Messrs. Hart and A. ID. Henderson.
Your committee is advised that such
action was not warranted either IN law
or by conditions that then existed, and
we therefore recommend 10 the board of
directors that immediate steps be taken
TO notify the bank that the district new
er received any consideration for the
delivery of said bonds and that they
must be Immediately returned to the
district, We understand that the bank
has been notified not to dispose of the
bonds. but that they have not been re-
turned as yet, but we recommend that
IA hp huDk ghnlll fail
render said bonds upon demand, that an
action be brought against the bank, and
that Mr. Hart and Mr.. Henderson be
Joined In such action for the purpose Of
recovering the bonds or their cash
value.
2O We ind that the district is in
dahted to the Idaho State & Saw
ings bank In the sum of f4,-
400, while unuestionably the dis
trlct has no legal right 10 in
cur indebtedness IN this manner
yet inasmuch as the district has had
the money and It was used legitimately
by the officers OF the district Tor the
payment Of bond interest in July, 1907,
and inasmuch as directors Vaughan,
Calan and Henderson have ndivid-
ually endorsed said note without any
profit to themselves, we recommend
that the district pay the principal sum
0f said indebtedness, as soon as II has
available funds hut we also recon-
mend that the interest heretofore paid
| till Dec. 81, 1907, should be paid by
Messrs Hart and Parkinson in the pro-
| portion ana for the reasons more par
| tlcularly stated IN paragraph ". And
we recommend that In Justice 10 the
| individual directors who endorsed this
| note that the amounts due from Mr.
| Parkinson be applied upon the principal
| sum ~ said indebtedness, providing
! that the said Idaho State and Savings
| bank, simultaneously with such credit
| return Ia the district for cancellation,
! outstanding district warrants equal In
| amount % the indebtedness from the
said Geo c, Parkinson,
INTEREST ON WARRANTS.
| 81. We find that in some instances
! interest has been allowed on uutstand-
| ing warrants, This rs illegal and ought
| 10 cease, The main cause for the pay
meni ot Interest on warrants has been
! mat persons were holding warrants
| FOR bonds. Your committee think that
! these persons join with other persons
! similarly situated ana secure "a bond for
| IN" NBgregnting amount OF such WAR
rants, or else hold them until the war
| rants can be otherwise regularly re-
| deemed No authority exists In law for
| allowing interest on warrants, whether
| such warrants have been presented 10
the treasurer and refused by him for
want Of funds or not
~ we hnd thai up 10 the present
time reBullr salaries have been p,dd
70 me directors, the SECRETARY and
treasurer amounting to several thousand