Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-01-18
GRAND Jury FINDS
NO INDICTMENT IN
WATER SHORTAGE
Quarter Million Def
icit Not Due to
Criminal Ofense.

The first December grand jury,
which finished its six weeks term OF
duty today. failed to find that any in
dictable offense had been committed
in connection with the discrepancy of
about a quarter of a million dollars
in the funds of the water depart
ment
The grand jury handed in short
presentment to Chief Justice William
S. Gumnnere. dealing with water board
matters, in which it was stated that
the jurors were satisfied mo criminal
offense has been committed by any
of the officials of the department of
water and that discrepancies in
certain trust funds reported by Price,
Waterhouse & Co, were. we are salts
fed, due TO Inadequate accounting
methods employed by the department
rather than to any moral fault Of
the cashier"
The cashier referred to is Henry d.
Northrop. who was dismissed by the
Board of Works at the reorganiza-
ton on January l.
sIipshod Business Method.
fact that the affairs of the board have
been run in a slipshod and unbusi-
nesslike manner, especially with re-
gard to operation expenses, but also
calls attention to the fact that the
department has been reorganized with
due regard to economy in all depart
ments. The presentment urges that
the organization policy be carried TO
completion and that the board use
ell effort toward eliminating waste
and unnecessary expense.
The presentment in full follows:
I'm accordance with your honor's
instructions we have investigated the
conditions existing in the water de-
partment of the city of Newark, and
in connection Herewith we have
heard testimony of the members of
the Board of Street and Water Com
nissioners, the chief engineer and
representatives of the firm of Price.
Waterhouse & Co., the public ac-
countants who examined the accounts
and affairs of the water department
and reported thereon to the commit
tee on finance of the Common Coun-
ell on November 6, 1872.
No Criminal Onense.
AS a result of our investigation we
are satisfied that no criminal offense
has been committed by any of the
officials or employees of the depart
ment of water. The discrepancies in
certain trust funds reported by Price,
Waterhouse & Co. were, We are salts
fed. due to inadequate accounting
methods employed by the department
rather than TO any moral fault of the
cashier.
"It is apparent, however, that the
affairs of the water department have
been conducted in a slipshod and un-
businesslike manner. The report OF
Price. Waterhouse & Co. which the
department officials admit is correct,
shows that the commissioners did not
have such definite and exact infor-
nation relative to the costs and re-
suits of the operations under their
charge as prudent business men US
ually require. Under this lax manage
ment the costs of operation Of the
department have increased in much
greater proportion than its revenues.
Price. Waterhouse & Co.'S report
shows that from 1905 to 1911 the reve-
nues of the department increased 46
per cent. while the operating ex-
penses increased 10s per cent. The
corresponding figures for the year
1911. as compared with 1910. are z
per cent. increase in revenue and II
per cent. increase in expenses. Some
incraase in the volume Of expense is
OF course. to be expected IN such q
scontinued on Fourth Paxe.s