Perth Amboy evening news. [volume] (Perth Amboy, N.J.) 1903-1959, 1910-06-20
Report Given To
FreehOIders S
Today.
THE EXPENSES
kpse.aI to tne EYBNINo NEWS.

Aveci1I to- the EVENING NEWS.
New Brunswick, June 20:-An
exhaustive report on the finances of
the county under the old Board of
Freeholders, next preceding the pres
ent board, was submitted at the
meeting of the freeholders here this
afternoon. The report is on the in
vestigation into the county finances
made by the Universal Audit Com
pany, which was employed by the
present board to go over the county
books Immediately after the present
board came into office. Many inter-
esting, not to say startling, things
are brought out. The different sub
jects considered are bookkeeping;
appropriations exceeded; floating In
debtedness; court salaries, fees and
expenses; Jail expense and board of
prisoners; feeding of prisoners;
maintenance Of lunatics; incidental
expenses.
Some interesting disclosures are
made under the heads of feeding
prisoners and especially under incl
dental expenses. The report quotes
the audit company to show that "the
retiring board transmitted to the
present board deficit of $17S,0S4.-
18. The report goes on to say;
THAT the income of your county
for the current year (1910) must be
applied in part to the extinguish-
ment of debt contracted prior to
that period, and amounting to
$22,438.89. No provision was made
during 1909 TO liquidate this indebt-
edness or to provide for it's liquida-
tion in 1910. Provision was made,
partly at least, by the retiring board
to fund a portion of the monies ex-
pended by 1t for macadamizing coun-
ty roads. A proposed bond issue
amounting to $97 900 was author
lied, but the disposal of those bonds
rests with the present board. II
these bonds are sold at par value,
and the proceeds are returned to the
county treasury as refunding por-
tion of the monies expended in the
construction of roads, there will yet
remain an unfunded> balance of
$31,S53.59 for which no provision
has been made for return to the
county treasury.
There was deficit of 81, ,658. 40
carried forward from the period end
ed January 8, 1906, and there is now
a deficit of $15,9O1 80 carried to the
present period from the period end
ed December 81, 1909. The total of
these items for which no extinguish-
ment has been provided is $49,514.-
OF, and we respectfully suggest that
immediate provision be made to
fund this amount at reasonable
rate of interest and return it to the
county treasury.
If possible to comply with re-
Quirements and do so, we suggest
the issue of short term bonds at a
rate of interest not to exceed four
and one-half percent f4& per cent? /,
and to be retired in such amounts
that the total retirement will be ac-
complished within the next five CD
years
The funds originally expended
and now presented in the $40, 9,514.07
were procured either primarily or
later by the issue Of notes which
were discounted at the rate of FIVE
per cent 6 per cent? per annum.
We question the wisdom of contin-
uing this specific Indebtedness In
the form of notes payable at the
rate of five per cent. G. per cent?
per annum, IL by any possibility the
amount may be funded.
To prevent present and future
boards from carrying deficits for
ward from one year to another,
either unwittingly or otherwise, pro-
vision has been made to supply
exact data from which correct con-
clusions may be drawn.
Your board will readily under
stand that the practice of carrying
the indebtedness of the current year
into succeeding year to be liquidat-
ed with the income of that succeed
ing year is fraught with danger to
your finances, as there must ulti-
mately be a time of settlement with
consequent publicity to such
methods"
The report opens with a complaint
of the method of keeping books. 1t
says:
Prom the recommendations of
the audit company as well as from
our experience as members of the
finance committee, it appears that
the system of record keeping in use
in the county prior to the present
CONTINUED on page 3.)