Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1912-11-21


Their investigation will have to be
made before the correct figures q
be established.
City Engineer 6herrerd asked MT.
Allan II It would not be proper to
estimate for the water department an
income from fire MIGRANTS OF about
$4,000, or S26 each for 5000 hydrants,
for, he stated, a private water COM
pany would derive such income. Mr..
Allan replied that possibly THIS was
true. but that he thought the engl-
neer's estimate was rather high. MIR.
Sherrerd argued that such an esti.
nation would oFset the apparent de-
felt and that this result would
further be brought about IL other hvs
drants In addition to those at the
City Hall were included.
IT don't like the impression TO go
abroad that that five million added by
retaliation was put there without
Justification" said Engineer sherrerd.
and the plant is certainly worth
more than the estimated twelve mil
lion, possibly as much as twenty
million. Another point that I should
like to make clear Is that water rents
should not only be charged against
people who use water, but there
should be a further charge against
real estate owners for the privilege
of having water. I think a good many
of the things in this report should
be lone at once"
! Turning to Mr.. Allan, Commissioner
Denman asked: did you find any
evidence Of irregularity, either Grim
inal or of gross carelessness, in your
investigation?
No Evidence Of C~riminality.
"I didn't find any evidence of crim-
inai irregularity, but considerable Of
gross careiessness," replied the ex-
pert, land this was in the accounting
system. The books as maintained by
the former cashier, now dead, were
In very bad condition, and this was
due to absolute ignorance"
Answering a. question from Com
missioner Kraemer II there had been
any embezzlement, Mr.. Allan said he
had found none as far as he had gone.
The expert explained that although
his firm had been instructed to in
stall new forms, they had brought in
their report at this time chiefly to
bring about a conference with the
finance committee and the Board Of
Works and learn their attitude.
City Counsel Nugent stated that II
was desirable to start a new sys-
TEN of keeping books next January
l under the instruction of the ex-
perts, with such help as the Board of
Works could give them, and a motion
to this effect, made by Alderman
Whitfield. vas passed.
In a statement after the meeting
Mr.. Allan declared that the situa-
ton in the water department was
brought about largely because its
income had not been great enough
and that water rates had been re-
duced when they should not have
been.
In the report on the condition Of
the city finances the experts stated
that ' lille the expert bureau was
nominally under the direction of the
city auditors office. in reality 1t had
an Independent existence. and much
of its e;ciency was lost thereby.
When Alderman Whitfield heard
this he introduced a resolution plac-
ing the expert bureau in the charge
of the auditors office.
Chief Engineer Sherrerd today took
exception to the auditors statement
that there was a deficit of $273.931 In
the water department. These figures
were probably correct. he said, ac-
cording to the methods of computa-
ton used by the investigators. They
had. however. he said, taken as a la
bility $1s, DOC. 200 worth of water bonds
issued at various times. and had
taken no account of 4 $4,000 placed
in the sinking fund last year for bond
redemption. The truth is, Mr.. Sher-
rerd says, that the water department
shows a balance of more than
81, 900, 900.