The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-07-15

written guarantee to the district that in
the event of said district being in any
way the loser by reason OF such receipts
then said treasurer will. within six months
| from this date repay to the treasury of
the district the amount OF such losses.
1--we find that apart from the inter
est charges just mentioned above Treas
urer Parkinson is indebted to the
district in the sum OF S. 563 S. none of
which amount is disputed by him. but
Mr. Parkinson claims that he should be
credited with the sum of $4l6.61. being
an increase of salary for the year 1901.
The records of the district. together with
the testimony Of the president and the
secretary. substantiate this claim. while
the other two directors stated that they
did not understand that such salary be-
came effective for the entire year of
| 1907. but only for the latter half. Your
| committee Is of the opinion that the pre-
ponderance of the evidence is In favor
| of Mr. Parkinsons claim. and we there
! fore recommend 1t be allowed. Mr. Park
inson also claims that he has expended
| AT least $1,000 in connection with the sell
ing of bonds and other matters taking
him out of the district While your COM
mittee recognizes that some of these serv-
ices have been performed we do not
/ feel that we have any authority to allow
| this claim.
Parkinson Is Held.
In justice to Mr.. Parkinson. your COM
mittee desires TO say that out of the sum
of 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 district. and also
| some taxpayers whose notes he has &C
! cepted in payment OF taxes. OF course
your committee cannot accept the re-
| sponsibility of any one except Mr.. Park
| inson, and therefore hold him for the
| amount
| And II is further understood between
! Mr.. Parkinson and this committee that
In making this settlement II is made with
out prejudice against Mr.. Parkinson
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 it shall hereafter
show to be justly due it,
i6-President A. ID. Henderson and the
auditor have adjusted the claims stand
ing against Mr.. Henderson upon the
books and after proper credit we find
| that there is at present nothing due the
district from Mr.. Henderson.
1--we find that certain of the bonds
belonging to the district hereinafter men
TONED are now in the possession of the
Bank OF Malad. Upon investigation we
ilnd tnat Mr.. Henderson claims that the
Indebtedness for which said bonds are
held as collateral was incurred in 1906 at
al time when the district was in need
OF money. and was made for the pur-
pose of assisting the district Mr. Hen
derson also claims that the loans were
used In good faith for the payment of
district warrants and obligations and
without any profit 10 Mr.. Henderson. who
is still responsible personally to the bank
for certain Indebtedness amounting to S.
900 or over. MI. Henderson claims to
nave outstanding district warrants suf-
Ilclent TO cover said Indebtedness. While
Mr.. Henderson has been present with the
committee upon several occasions yet he
was compelled TO be absent from us at
the concluding session of the entire COM
mittee. and. there being still some ques-
lions that should be investigated we rec
ommend that this entire matter be re-
ferred for final adjustment to the sub
committee hereinafter mentioned
1S-Your committee have had under con-
sideration the claims against Mr.. Marion
Henderson. Mr.. Marion Henderson APP
peared before your committee and claimed
that at certain time the district re-
quested him to quit his contract. because
they were unable TO pay him. This he
consented to do as an accommodation to
the district. providing the district would
assume a certain Indebtedness at the Ma
lad bank. amounting to $3.50. Mr.. Hen
derson has since had warrants issued to
him for the amount due him. but he Of
fers TO return for cancellation to the dis
trict warrants equal to the amount of
this Indebtedness at the Bank Of Malad
Your committee has been unable to reach
any definite conclusion upon the claim
Of Mr. Marion Henderson. for the rea-
son that unfortunately In the midst of
the investigation Mr.. Henderson was tax
en- seriously i'll and has not been aole
to complete the examination with this
committee.
Never Received Consideration.
1--WE find that Se7.IOO worth of third
series district bonds are now in the pos
session of the Bank of Malad as collateral
Tor security on the Henderson notes.
These bonds We're placed in the posses
sion of the bank by the action of MessIs
Hart and A. ID. Henderson. Your COM
mittee Is advi- ed that such action was
not warranted either in law or by con-
ditions that then existed. and we there
fore recommend TO the board of direc-
tors that immediate steps be taken To
notify the bank that the district never
received any consideration for the de-
livery of said bonds and that they must
be Immediately returned to the district
we understand that the bank has been
noufled not TO dispose of the bonds but
that they have not been returned as vet.
nut we recommend. that in the event the
bank should fail to surrender said bonds
upon demand that an action be brought
against the bank. and that Mr. Hart and
MI henderson be Joined in such action
for the purpose of recovering the bonds
or their cash value.
Eve md that the district is indebted
10 the Idaho State & Savings bank in the
sum OF N4. 400. while unquestiOnabIy the
district has no legal right to incur in
debtedness in this manner vet inasmuch
- lHc ulstrlCl mas mad the money and
II was used legitimately by the Officers of
the district for the payment of bond in
terest in July, 1907. and inasmuch as Di-
rectors Vaughan. Calan and Henderson
have individually endorsed said note with
out any profit to themselves we recon-
mend that the district pay the principal
sum OF said Indebtedness, as soon as IL
has available funds But we also recon-
mend that the interest heretofore paid till
Dec. 81 1907, should be paid by Messrs
Hart and Parkinson in the proportion
and for the reasons more particularly
stated in paragraph II. And we recon-
mend that in justice TO the Individual di-
rectors who endorsed this note that the
amounts due from Mr.. Parkinson be an
piled upon the principal sum of said in
debtedness, providing that the said Idaho
State * Savings bank. simultaneously
with such credit return to the district for
cancellation, outstanding district warrants
equal in amount to the indebtedness from
the said George c. Parkinson
Matter Of Interest.
live find that in some instances in
terest has been allowed on Outstanding
warrants. This is illegal and ought TO
cease. The main cause for the payment
or interest on warrants has baen that
persons were holding warrants for bonds
Your committee think that these persons
JOIN win other persons similarly stfu-