Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-02-06
Los ANGELES HERALD. FEBRUARY 1908
LOS ANGELES FINANCES

N RITICS who have been scrutinizing
the financial condition of the
municipality of Los Angeles say
that the outlook is not encouraging.
There is plenty of money in the city
and plenty may be raised for all neces-
sary expenses. Lack of funds, in the
face of speedily demonstrated facts,
could not, for instance, be pleaded as
an excuse for delay in remedying city
jail conditions. But it is with the
economies of financial administration
that the scrutinizers have a quarrel.
Investigations show that the revenues
of the city this year showed on the
books a gain of over 100000. as COM
pared with last years at a correspond
ing date; and this does not include
sums raised for interest and sinking
funds, but merely the money to be used
for the administration of the city.
From 100000 to 100000 must be car
ried over to put the city on a sound
financial basis. OF the 100000 gain
100000 should have been allotted in the
budget to a reserve fund. AS a matter
of fact, 100000 was originally so al
lotted, but ii was subjected to AL
LEGGED economy-for there are econ
omies and "economies"-and was re-
dueed to 100000. A number of ex-
penses that were known but not
scheduled attenuated this fund to $780,
000 The dissolvirg view did not stop
short. A few more manipulations of
the magic lantern, and even the $780,
900 disappears! The auditor says that
the contingent fund is not only ex-
hausted, but overdrawn more than S75,
900. Thus with a display of finance
that may not be frenzied but that GER
tainly somehow suggests prestidigita-
tioIl-for isn't it a case of now you
see it and now you don't?'-an APP
parent plethoric reserve of 100000
dwindles, peaks and pines until a
ghostly. CHASTITY, miserable deficit
haunts the city hall.
The city's sources of income are
neither elastic nor miraculous. Only
so much money can be raised by or
binary methods, and that much repre-
sents the available resources with which
be conducted. You cannot eat your
cake and have it, and the city cannot
spend it's income more than once. 1t
is prophesied that q number of pro-
fessional warrant shavers will grow fat
during the months of July, August and
September at the expense of city en-
ployes who need ready cash for the
10 H.
while during the merry month of May
and the rosy month of June the pros
poets of cause for merriment are not
roseate, inasmuch as it is not probable
that there will be pay of any kind for
city employees!
But the auditor is an honest and cap
able man-nobody doubts that. The
council is honest Indeed, as compared
with some councils, it is angelic. The
city officers are men of ability and in
tegrity. Yet, say responsible investi-
gators, we are involved in "the worst
financial tangle in years" The most
curious and significant comment made
by the Investigations upon whose re-
ports we base our comments is that
the honesty of the present administra-
ton is partly the cause of the trouble!
Formerly, it is alleged, the figures were
juggled by the auditor or by the city
accountant. He worked in a huge
concealed contingent and reserve fund
by holding out in his advance state
ment about 20 per cent of the citys
income. 1t is also charged that he was
able, by collecting bond money,
to smuggle in several hundred thousand
dollars from the assessment in excess
of the dollar limit, and that he juggled
with various funds, including water re-
ceipts, in order to bring the city through
without discounting warrants.
The detected investigators of the
citys finances declare that Los An
geles viii reap a weedy harvest from
her financial tare-sowing and that the
day of the reaping IS at hand. Skill,
courage, honesty and executive and
administrative ability are needed. 1t
is not good policy to mourn in advance
of the occasion. Let us expect displays
of skill, courage, honesty, executive and
administrative ability. Let us hope for
the best. Let us be optimists.