Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1914-05-02

mands. Please pay the amount to Mr.
Smith In full and take his receipt Tor
the same, which viii be the same as
my own.
., Very truly,
"(Signed) ~. NAKAYAMA
Witness to signature,
l"fSignedt "KUMAZO MATSUMURA.
1t will be observed from the fore
going documents that the warrant in
settlement of the Matsumura claim
amounting to $S,425.22 was issued to
Carl s. Smith two days before M"tsu-
mura had assigned his claim to Mr.
Smith, and IL days prior to, the au-
Ithorization of the payment OF the same
by the board Of supervisors OF the
county of Hawaii.
Faults of System.
Without doubt, no part of the re-
port of Mr.. Field is of more value,
from the point of constructive criti-
cism, than part No. 2, in which he re-
views the present auditing system OF
the county, shows where il is faulty
and an easy instrument OF fraud and
populations, and finally outlines a
modern and scientific municipal &C.
counting system. with drafts of bal
| ance sheet and other financial forms.
| In this part of the report, there ara
found many valuable recommends.
items, which exemplify both the thor
oughness with which the accountant
has gone into his investigation and his
expert knowledge Of the subject he
discusses Its length makes il i'm
possible for IL to, be quoted in full;
the best that can be done is to give
excerpts from it., Near the beginning
The says: s..e.~ ~. .... :.... ...%
| This report viii show that neither
the officers nor the taxpayers of Ha-
wall can know the essential facts as
to what their government is doing
to meet obvious community needs:
that for want of information the
county government Is far less eff.
cient than 1t should be; that because
of inefficiency there is waste of taxes,
and inferentiaily, much fraud has
been practiced. Z
4 He then says that the account
books prescribed by the territorial au.
ditor are completely inadequate to in.
form the taxpayer of the county's
financial condition He adds that no
attempt has been made since the com.
imencement OF the county government
July 1, 1905-to improve the &C.
counting practice.
The lavish expenditures in the past
Of public funds In the territory, to-
/ gether with inefficiency of govern
ment, can be attributed to two causes:
u. Unprecedented flush times In
the past: and
i 2. Citizen tolerance of conditions
demanding government action and
deonsequent low public expectation Of
i goVarnment service
With the reduction in 1914 of from
IS to 40 per cent in the assessed valu-
alton Of taxable property in the terri.
tory over that of 1913. and the govern.
mental expenses Milling up, despite all
warnings. no intelligent citizen can
deny that the outlook for the future
demands q most rigid policy of re-
itrenchment
The conclusions TO be drawn from
the annual, and only financial state
ment which is now required to be sub
taryits,,.,at -, ift-,, ,.,l,s,y, t,..,tl,
Ter with similar statements from the
ether county auditors in the territory,
.ol.n lae uasls ~ ele auul,
VI s.aseilens. q Z the county IHlan.
c.ai cohu,t,ons OF Ine soVernneh - ~
Il tnat IN IalilnE 70 observe scientiIlc
prlneiples IN statlng accounts and IN
II trying 20 make one statement snow
several distinct gronps or facts which,
Il from their very nature. need to be
4 stated separately. the outcome OF the
financial program Is obscure. Is It as.
tonishing, therefore, that the taxpayer
Hoses interest in the financial affairs
I of his government when he is not
! given the opportunity to understand
what is happening -
Reforms REQUIRED.
II Such matters have been carefully
treated in the municipal accounting
IL acharna az fl.o ron,ifrnnnnrtc IF finau,