El Paso herald. (El Paso, Tex.) 1901-1931, 1920-06-23
REGENTS
DENY DEFICIT


ACoutlnucd from page -
a bookkeeping credit on the treasur-
er's books OF approximately $4,000.
which was then involved in the fail
ure Of the First state bank at Las
Cruces This money was not recov-
cred until December, 1918, and later,
when IL was paid by the surety com
pany on its bond, the sum amounted
to SIS, 230-26, principal and interest,
urer took possession Of $4,000 as
state permanent funds which could
not be spent by the college How
this 81, 600 came into the hands OF
the treasurer Of a former board we
are wholly unable TO state. We had
a right to assume that no such funds
would be held by the treasurer Of the
board which should have been held
and invested by the state treasurer.
This lift SIS, 230-26 to be used by the
college This amount was, for the
most part, absorbed TO replace fed
eral funds which had been lost in the
failure OF the First State bank. and.
in addition, the college was compelled
TO pay about $1,000 in interest on
money borrowed TO meet its expenses
and carry on federal funds until the
money was recovered
No Appropriation for Deficits.
NO money was ever appropriated
UE Lle state lie El64aL4EE 10 pay any
Of the deficits mentioned, and the
only appropriation ever made, out
side the regular appropriations. was
one OF $1,000 TO meet the interest re-
ferred to. In fact since the present
board had charge, the legislative ap-
propriations have been small when
we eliminate special appropriations
made necessary by new laws and de-
signed 20 meet federal appropriations
of like character and which could
not be used for the general college
needs already existing Also. during
the past two years, the value Of
money has so declined, being prac-
tically so cents on the dollar as Las
Cruces, as shown by a carefully pre-
pared report made by that faculty OF
the college, that even appropriation
made on the basis OF former years
were only 50 percent effective in pur-
chasing power at the college"
The statement goes on 10 tell OF
the readJustment to meet conditions
brought about by the war. Of i'm
provements made in the fact Of diff
culties, Of economics practised and OF
how the Institution met the war de-
partments needs better than it ex-
pected to in training fighting me-
ehanics." Then, with reference to the
particular finances under discussion,
the statement says:
In 1913 the state overpaid one
fund by mistake in the sum OF $500,
which fact was not known to the
board OF regents until recently, but
in 1920 this amount was arbitrarily
withheld b. the state without notice
when IL had been taken into account
by the college budget This was not
the fault Of the regents and they
would not have used this money had
they known it and they had no reason
to expect this amount 10 be deducted
from the present fiscal years appro-
priations-
improvements Authorized.
"On august %. 1913, this board OF
regents authorized certain improve
ments 10 be made IN the engineering
building by the dean OF engineering
in the sum Of 5000, OF which $1,000
was TO be diverted fro mthe budget
Of the engineering department and
repaid from other funds covered by
the college budget so that the total
expenditure authorized from the gen
eral college funds was $1,000. The
5000 to be diverted was not turned
over and without any authority from
any one additional bills for Ss4S4-32
have lately appeared in the college Of
ice and have been included in the
ieticit alleged by you These items
we're never ordered by the board OF
regents and would not have been paid
by them Hence the board Is entitled
% q circuit OF Aos4o4-ol against Lle
le1lclt so alleged on account OF these
-wo items. The item OF $4,000 has.
therefore, been appropriated by the
board only once instead OF twice, as
indicated in the alleged deficit
'On June 10, 1920, there was cash
1n hand, according to the college
books, OF s22,71O.O6, which also should
be deducted from such alleged deficit
NO account has been taken thus
lar Of outstanding bills OF the pre-
vious board, paid by the present
board on assuming office As near
Is We can determine We paid $15,-
lS4-27 on bills authorized before we
-ook charge and We are entitled to
sredit for this amount.
NO account has yet been taken Of
money TO be derived by profits from ]
stock experiments and other expert I
nents. On these we viii realize !
'25OO."
Credit Balance Claimed.
Concluding the citation Of figures, |
he statement says.
Under the fund known as the I
tate general fund the board has re-
,eived from July 1, 1917. to May p. Z
$50, the sum Of 1923, 364.09. The board /
las expended under this heading the I
Jun OF 504,S1S.67, leaving a total I
apparent deficit OF Ss1.554.5s.
To apply against this deficit the /
BOARD has on hand s31. 23T. with a
balance due on state land income for /
he year 1913 Of 81, 900; credit OF /
expenditures not authorized by the I
'oard as yet, S13,z with an antici- l
lated income under this fund until /
November 30 Of S38. SOB, making a to- |
al Of credits to which the board Is 1
Untitled OF ss7,5s4 and leaving a bal /
lnce TO the credit Of the board, with /
II debts paid, to be expended be- /
ween now and December l OF SI5,-
'69-42. Out Of the appropriations /
made for the fiscal year ending No /
-ember 30. 1920, the state treasurer |
-rbitrarily deducted $500 and with i
leld the same from them on the /
round that this sum had in a pre- i
'ious year been paid to the college /
y mistake, which. added to the SIS
69.42, makes a total balance for this /
iscal year OF S25,369.42 TO the credit /
Z the board
President Clothier. college auditor
. n Hendricks and attorney general
slrew were in conference with gov
rnor Larrazolo "Wednesday. The I