Los Angeles herald., 1910-11-30
ERROR CLAIMED IN
AQUEDUCT FUNDS
Washburn Says Mayors Esti-
mate 0verstates Available
Amount by $850,000
RETARDS OWENS RIVER WORK
City Auditors Cash Balance Is
$458,866 Too Big, Declares
Finance Chairman

Declaring that much misinformation
has been given to the public regarding
aqueduct affairs by city officials, and
that banks and other institutions which
have been doing what they could to as
sst the project to an early completion
have been sneered at, w. ]. Washburn.
chairman of the finance committee OF
the city council, speaking to question
Of personal privilege yesterday, defined
his position.
Mr.. Washburn asserted that Mayor
Alexander had sent to the council q
communication regarding aqueduct
finances in which there was an error
of S850,000. He said that the city aud
itor had overstated the amount of the
available cash balance on November 23
by S45S,S66. He then submitted to the
council the following figures as the
correct ones. They were supplied, he
said, by e. v. Harding, chief account
ant of the aqueduct, and show
Cash on hand December 1.........S .SSso,ooo
Due from water department. '....' 42e'oOo
Due from individuals and corpora
tons. ......s...'.......'.'.' So,o0O
Due from sinking fund. ............ 100000
;9Os.Ooo
December and January expense les
timated). .............''' |ooV'VV'
Mr.. washburn said:
GREAT LOSS By DELAY
I'm July. when the last bonds were
sold, the board of public works was
obliged greatly to curtail aqueduct con-
struction on account of insufficient
funds. 1t stated at that time, and has
maintained since, that this reduction
caused great expense and serious delay
1t was understood then, and until the
recent negotiations eliminated, that
this state of affairs should be remedied
..lsa a-k mn
"When the matter was up in the
council two weeks ago Gen. Chaffee
and Mr.. Mulholland appeared and stat
ed that upon present curtalled opera
tions there would be on hand February
l next, after using all OF the sinking
fund and the amount due from the wa
ter department, enough to continue op-
erations about one month, and also that
money furnished according to the
schedule named In the present contract
would extend the time for the compile
ton of the auueduct from five to six
months. 49,
Mr. Lippincott, at subsequent con-
ference between the mayor, councll,
board of public works and aqueduct
board, made a detailed statement show
ing a clear loss Of over half million
by the delay.
I'm this matter all sorts of inaccu-
rate and misleading statements have
been made. The mayor sent a com
munication which was $S50,000 out of
the way. The auditor, In publishing an
interview, overstated the available cash
balance on November % by $45S,S66, and
by this means showed abundant funds
on hand.
MIsLED BY WRONG FIGURES
I'm other statements he asserts that
some two or three million dollars will
be lost by. investing the sinking fund
in one class of bonds issued by the city
instead of another, although they bear
the same rate of interest. 1 must con.
fess that this Is a new system or
finance with which am not familiar.
"It was asserted that efforts were
made to jam the measure through the
council.' The bond syndicate has been
branded as thieves. The chamber or
commerce and the realty board, when
they presented respectful resolutions,
were charged with Juggling figures
and trying to coerce this body. The
banks of the city, which by their timely
and uublic-spirited assistance last sum
mer probably saved complete suSpen-
sion of aqueduct construction, were
sneeringly referred to. The board or
public works and aqueduct board were
accused of being two-faced in the mat
ter.
81 have all along been unable to un-
derstand why such incorporate lam
guage has been INDUCED In in this
matter. 1 have no fault to find with
my associates in this council for hon
estIv disagreeing with me. / have no
reason for believing that my judgment
ia better than theirs. 1t may be that
it was not a wise contract to make
Possibly a better one will come out of
it all.
"I am coming to believe. however,
that some members of this council have
I.-IIwr too, ,tr,
ures furnished by officials whose duty
it is to give us information. If this is
the case, great and nnwarranted re-
sponsibility has thereby been taken by
these officials, and one that merits the
severest condemnation"