The Irish standard. [volume] (Minneapolis, Minn. ;) 1886-1920, 1914-05-09
A COSTLY EXPERIMENT IN So
CIALIST CONTROL.
Schenectady Finds Its Finances in
Chaotic Condition.


''Lunn and Associates" and Their
Little Coal Deal.
The State Comptroller of New
York has been examining the books
OF the city Of Schenectady and as
result that municipality has begun to
realize what its little experiment in
Socialistic administration mas really
cost. Gross negligence and ineffi-
cheney in handling the city's finances
Is disclosed. manifesting itself in
books upKept. accounts unchecked.
the transfer of sums Of money from
one fund to another, for which they
were not intended, and many other
similar acts. During 1913, the last
year of the Lunn administration, the
debt of the city was increased 5O.4
per centum; the municipal activities
IN grocery store. an ice bureau. a
coal bureau. a farm, lodging house,
ana an employment bureau, caused
a loss to the city of $6,3O9.16. be-
sides diverting the time and alton
ZION OF the officers and emnloveo.
from their legitimate duties. varions
sums OF money. expended for purnos-
es not properly chargeable against
ene Guy. aggregated s21.100.42. The
financial records of the department
~ pubic works, the most important
department in the city government
we're poorly and improperly kept. the
physical records failing to show in
formation upon which an intel,;sen+
ejaculation of unit costs could be-
made. while no complete records
were kept Of supplies received worr
returned or of charges made
against individuals. In violation ~
.aw' sums of money were expended
lor purposes named in the budget
IN excess of the amount appropriated
therefor. and funds of the city had
oeen drawn from the repositories of
city funds on checks not made pay-
able to persons entitled to receive the
same. or on checks not signed by the
city comptroller. In order to make
1t appear as though the city was be-
Ing economically managed, claims
properly chargeable to current opera
lions were charged to construction
accounts. The salaries of janitors.
for example, were charged to high
school construction; while the cost
of a motorcycle was divided between
sewer construction and forty eight
street construction accounts.
The story of municipal coal is in
teresting and instructive. though too
long and complicated to tell in detail.
The coal industry in Schenectady was
carried on by the city and by an as
ISOLATION of individuals known as
George r. Lunn and Associates"
Just who these mysterious "Associ-
ates" Of the then mayor were has
never been learned, though it is pref
ty we'll estab lished that some of them
II not all were city officials. The as
ISOLATION appears to have been
formed after the city was restrained
from selling ice. for time engaging
in the ice business on its own ac-
count. In the autumn of 1912 it en-
tered into the coal business. A work
ing arrangement seems to have been
entered into with certain D. j.
Sweeney, close friend of Mayor
Lunn, whereby the business was to
be carried on in his name. A motor
truck purchased for the ice business
passed into his possession; city
checks payable to Daniel j. Swee-
ney" were paid not to Mr.. Sweeney,
but "were delivered to the commits
sioner of public works or his secre-
tary, one A. H. Van VIE, and many,
If not all the checks are directly
traceable to the bank account of
George R. Lunn and Associates of
which Mr.. Van Vie appears to have
been trustee"
Gust where the activities of
George R. Lunn and Associates left
off," the state examiners say. land
those of the city began is not clear"
The city contracted with Mr.. Swee-
ney to deliver coal it had purchased
to public buildings at a certain price
per ton and later to other points de-
signated by the commissioner of pub
lie works for double the price per
ton. This last was to individuals.
The practice of ordering coal I'M
der the city's contract and upon the
city's credit was inaugurated, Mr..
Sweeney delivering it at the contract
price per ton.
Coal bags-846 in number and
costing $643-were purchased in
September and October, 1912, by
the city and were used by Mr. .Swee-
ney. On January IA, 1914. fifty bags
were found in the possession of D. J.
Sweeney; the rest could not be
found. In the conduct Of the whole
coal business there. were numerous
errors, accounts were confused and
bills unchecked.
schenectady's experience should be
remembered by other municipalities
when Socialist dema 9o9ues Dresent