Newark leader. ([Newark, Ohio]) 1917-1946, 1918-01-12
The Watch Dogs
of City Treasury

State Inspector Heck is rather volu-
minous in his report on the very i'm
portant function, the Sinking Fund
Trustees.
Since 1905, by an act of council, the
trustees were provided with clerk.
Frank T. Maurath was the first clerk.
The city auditor cannot serve as such
clerk. For time that officer did so,
but the practice was stopped by the
attorney general. Such clerk, or sec
retary, must give sufficient bond,
and the kind of bond may not be
scrutinized The Newark Trust Co.
is the constituted depository of the
sinking funds, which are used to pay
the city's funded obligations, on matu
rity, both principal and interest
The trustees have no authority to
delegate their powers to others, not
even the secretary. Money shall be
drawn by check only, and signed by
at least two of the trustees. 1t is the
duty of the trustees to anticipate in
terest coming due or bonds maturing,
in advance, and have the funds at the
place where payment is to be made,
at the time of payment. They must
be specific in the matter, as the sink
ing funds are also usable to pay
judgments final, court costs and in
cidental expenses of the board. 1t is
the duty of the secretary to keep
duplicate accounts and advise the
nearness of maturity of bonds out
standing. The secretary may settle
with the depository bank semi-an-
nually, quarterly, monthly or oftener.
The inspector says he has great
confidence in the integrity and ability
of the Newark board of trustees. 1t
is necessary for them to be absolutely
correct and avoid all confusion. He
advises the opening of bond and
coupon feature in their bookkeeping.
The depository bank, above named,
bid 3.01 per cent on the funds OF the
trustees. 1t was 1 per cent better
than the next bidder and the funds
were left with them. The bond by
a depository must be for a sum in
excess of the probable amount OF
city funds they will have at any time.
He finds that the depository gave col
lateral security to the amount OF
1889. The trustees gave bonds in
the aggregate $45,O00. He notices
that the bonds had not been formally
approved by the solicitor, as the law
provides.
1t is clean, under the law, he says,
that when assessments are made for
certain purpose the funds so Sc
cured must be applied to that pur-
pose and no other. His audit shows
that the Newark trustees received in
1915 $9O,784.46 and disbursed 1884,
687.67; in 1916 received $1O5,2O6.33,
and disbursed $96,708.19; in the part
of 1917 covered by this inspection they
received 3,854.78 and disbursed $47,-
002.9O in the general fund. On May
5, 1917, they had in the depository
S57,O25.52. He says the grade eros
sing elimination bonds, sold May 10,
1915, we're made payable in New
York city and it will cost the city
from one-fourth of one per cent to
one per cent to have the redemption
handled, an expense which would not
have been incurred if the bonds had
been made payable in Newark. 1t is
fallacy, he says, that bonds sell
better if they are made payable in
some great money centre and not in
the city where they are issued. The
bonds were sold to Ohio bond buyers
at a premium of $4,1O4, and he be-
lieves that an equally fair premium
might have been secured with the
bonds payable in Newark.
He says, that on May 5, 1917, the
total bonded Indebtedness of this
municipal corporation was 1851 ,66O.74
and the special assessment bonded
Indebtedness was $251, ,262.35. The
extinguishment of the bonded in
debtedness is by a general tax levy
and by special assessment.
He discusses the large delinquent
list of parties who have not paid
their special assessment levies. The
law, he says, should be strictly fol-
lowed and he reminds the trustees
that there is no good excuse for the
present condition of the increasing
deficit in the special assessment ac-
counts.
He says, in this connection, that
within a little more than two years
the city's indebtedness increased
1871, ,513.5S or nearly half more than