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

I
that in the discharge OF the official du-
ties of such officers. there have been
many IRREGULARITIES OF METH
DDS. EXHIBITIONS OF AVARICE and
and even DISREGARD OF STATUTORY
LAW. but no evidence has been submit
ted to us demonstrating that the funds
of this district have been stolen by such
former officers.
2-We find that no well authenticated
case has been presented to us demonstrate
Ing that any of the officers. while holding
offices In the district. have trafficed in
warrants in the district
I've find that during the construction
or the canal, the affairs of this district
We're OF such magnitude that great loss
was sustained I'm the financial engineer
ing and construction departments of the
district by reason of NEGLECT OF
Duty. WANT OF SYSTEM, and IN
SUFFICIENT SUPERVISION
5-We find that early in the operation
OF the company. the board of directors
committed two fatal errors The first
error consisted in permitting one OF their
! own number to be appointed secretary.
attorney and acting treasurer of the dis
trlct, while at the same time they had a
nominal treasurer George c. Parkinson).
VINO was not able to give his personal
Time or attention to the affairs of the
district. and of which condition the dis
trict were fully cogniZant. because they
paid salaries 10 both the nominal treas
urer and the deputy treasurer employed
ror consisted in allowing the construction
| OF the canal 10 be proceeded with before
they had disposed of the bonds according
TO law.
Not Personal Funds.
6-We find that Secretary Hart and
Treasurer Parkinson were both wrong in
assuming that they had right to treat
money OF the district as their personal
FUNDS, for which assumption they had no
other Justification than their own finan-
81 he a
given official bonds and the further fact
that other public officials had treated
public funds in similar manner.
I'VE find that each day from Feb. l.
1904. TO Dec. 81. 1907. Secretary Hart had
constantly in his possession largs sums of
money belonging TO the district and vary
ing IN amount from a few hundred dol
lars to many thousand dollars per day. II
is true that part OF this money was held
by him as acting treasurer for the pay
ment of warrants payable during the alb
sence of the real treasurer or for the
payment of pressing accounts about TO
become due. But. on the other hand. il is
also true that during this same period Mr..
Hart loaned many Thousand dollars OF
TINS same money to contractors, and 9th
ers at a high rate of interest. besides In
vesting part of il i'm the so-called Arm
strong ranch, which produced a profit 10
himself. TO Treasurer Parkinson, and all
persons interested.
S-We find that at the present time and
mittee. Mr.. Hart actually owed to the
district for money coming into his hands
and not dispersed by him. the sum of
s12.S5l.@. Mr.. Hart admits this amount.
less the claims hereinafter stated, and
has exhibited outstanding warrants of the
district which he desires to turn in to the
treasury In settlement of such admitted
account.
9-Mr Hart claims that he should be
credited with $500. being amount paid by
him TO George NJ. Cannon commission
for the sale of $4,000 worth of district
bonds. but the committee is unable TO
recommend such an allowance both be
cause we are advised that the payment
OF commission for the sale of bonds is IL
legal. and also because this question is
now in the courts. and should not be dis
turbed by us, especially as this commit
tee il advised that the district will be
able to secure judgment against all per-
sons who have taken commissions out of
the treasury for the sale of bonds.
Some Financial Transactions.
lO-Mr. Hart also claims he should be
credited with 500. being "a balance of
notes paid him in warrants IS. 80 and 40.
We think this matter can be easily set
tied by the board of directors. and so
recommend.
five find that the lions Savings bank
and the Amalgamated Sugar company
paid par for all bonds bought by them.
and that without their knowledge George
NJ. Cannon and George &. Parkinson Sc
cured 10 per cent commission from the
district; Mr.. Cannon still retains such
commission. while Mr.. Parkinson has re
turned to the district the amount col
lected by him $4,000.
12-We find that during the period that
Mr.. Hart had daily in his possession mon
ey belonging to the district. averaging
from several hundred dollars per day to
several thousand dollars per day the
district actually paid out for interest on
borrowed money the sum of S2.4l6l2, out |
side of bond interest At the same time
the Bank OF Malad has collected from the
district large amounts of interest cou-
pons on bonds placed with the said bank /
as collateral 10 secure certain loans made |
at said bank by a. ID. and Marion Hen
derson. We therefore think that from
the proceeds accruing to the personal adj |
vantage of the officers from the use of |
the district funds sufficient amount should |
be returned to the district to cover the
payment of the above interest expendi- !
lures.
District Money Now Accounted For.
13-We find that Treasurer Parkinson
on Dec. 3 1905. transferred to his per-
sonal credit the sum of S5,00o of the dis
trict money which amount was not re-
turned until Dec. ~. 1907. and that du-
ring the same period he had from s.. 1000
and upward of the district money in his
hands. which should have been account i
ed for and should have been In the treas
Iry. and that inasmuch as the district
was paying interest during all this pc
Rod. as above stated, we think Mr.. Park !
inson ought to contribute a proportion
ate amount of the interest expenditures
mentioned in paragraph II.
1--we also find that orders have been
received by the treasurer upon which re-
ceipts have been issued to taxpayers ag-
gregating approximately 2.3sS9!. This |
amount has never been received by the
treasurer, and this committee recommends
that the treasurer be given credit for
said amount providing the treasurer give