Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1909-11-23
COUNCIL VOTES TO TRANSFER
SINKING FUND BACK TO WA
TER WORKS DEPARTMENT.
AUDITING DEPARTMENT
OF STATE so ADVISES
Councilman Herman corks Surplus, If
Any, From Going Into Elevated
Tank-Amendmen to Ordinance
Transferring Money Adopted Calling
For Sum to Be Spent For Dam.

The city council is feeling rich TO-
day 1t hasn't exactly got money to
burn, but more properly to soak.
Strictly speaking the surplus is just
out of soak. and ready to be invested
in the dam Improvement. For two years
it has been lying idle, and until last
night the council did not muster up
sufficient courage TO touch it.
The great richness that has been
thrust upon the council is the $4,000
that formed the sinking fund created
almost two years ago to take up out
standing bonds in the water works de-
partment.
The money was derived from the wa
ter works department, and after the
sinking fund had been created it was
discovered that the creation act was
illegal, because the law says that bonds
must be retired by taxation. and not
by revenue. Consequently the money
has been Where it could not be touched
or at least so the council felt until
the opinion of the city solicitor was
given Monday night.
Corks Up Air Castle"
But before the ordinance ordering
the transfer was made, Councilman
Herman completely bottled up any eff
fort on the part of the water works de-
partment 10 use any of the money to
pay for the elevated tank, which Mr..
Herman is pleased TO call "Clarks air
castle" An amendment TO the Clark
ordinance was adopted with the votes
of Gregory, Herman, Hull, and McCar-
ten, that called for the $4,000 TO be
spent for the dam and retaining walls
only.
Auditing Department Concurs.
City Solicitor F. f. Northup gave an
oral opinion to the council on the le-
gality of the proposed transfer. re-
peating his former ideas on the subject
Mr. Northup said that he took the
question up Saturday with the depart
ment of the state auditors office thai
has charge of the examination of city
accounts, and the department agreed
with him, after careful examina tor
of the facts, that there was no objec-
ton to the transfer; that the fund hat
not been properly created, and that tn.
money should have been transferred
covered Mr. Northup said that tn
state auditing department had con
CURED in everything he had had to sa,
on the subject TO the council on pre-
vious occasions
Mr.. Northup considers the opinion o
the state auditing department 70
weight, because this department ha.
the checking Of the city's books i,
charge. and upon examination coul,
make no complaint if it had advised tn
transfer
Ordinance to Transfer Money
Mr.. Clark then presented an ordi
nance repeating the ordinance maxim
the appropriation as adopted on Apr
10, 1908 and ordering the money re
turned to the general water work
fund
Mr.. Herman did not just like the ac
ton in view of the fact that he ha
always maintained that this none
had been created by an over-charge {
water consumers. and therefore be
longed 10 the people. and that the over
charge had been made and advise
willingly in order to apply toward
debt of $4,000 that would come dr
In 1911. The debt was of thirty-fiy
years standing. and the people ha
paid over $4,000 in interest on tt
water works debt
At the same time Mr.. Herman rec
ognized that the city had contracte
for dam. and would have to pay for
and he was not going to object serious
ly toward applying the $4,000 towal
the dam providing it should go towal
the dam and retaining walls, and noti
ing else.
In fact Mr. Herman could not s.
how, even with the 81 ) 900 to fall bac
on. the city was going to pay for e-
erything it had ordered for the wat
works department., including the IS,
air castle and a Foundation that hs
to be built for it besides. Herman sa
that it had been preached continual
in the council that the $4,000 w:
wanted for expenditure on the dam,
now spend it for the dam.
Mr.. Gregory thought, in view of ii
opinion of the city attorney, that tt
city could hardly do anything mo
than use the money for the dam, whit
ne thought was as much, if not nor
necessary, than the payment of II
bonds.
Mr. Clark and Mr.. Good did not lii
the ldea OF holding the departing
down to an expenditure of the mon
ON the dam and retaining walls alor
Mr. Herman asked Mr.. Clark to gu
line the cost of the dam, and Cla
thought about 500, 600, $4,000 Of viii
the state would pay, $4,000 or $50
due from the county and $1,000 fro
the Marshall Ice Company.
Mr.. Herman, however, insisted TIL
the dam would cost at least s33,0l
and said he had reliable estimates.
After the Herman amendment n
been adopted all voted aye on It
adoption Of the ordinance as amends
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