The Birmingham age-herald., 1924-07-15
|M'LENDON MOVES. FOR NEW SYSTEM. 10 CHECK FUNDS.
Commission Head Scores Defense Of Present
 Lax Method

ment branch Of the comptrollerS oftlce will be asked to recommend "sound system of handling city funds, under which possible future defalcations would not go undetected for months," Com mission President D. E. McLendon an- nounced Monday.
 McLendon conferred Monday after noon with Comptroller c. E. Armstrong, who earlier in the day had issued statement defending the existing sys- tenn. i-
 T am surprised" said the commis- sion head ''that the system now en- ployed in the, comptroller's department is being defended.
 "It must be clear to every citizen of Birmingham that a system that permits money to be stolen in July, 1923, and go undetected until July, 1924-and then only by chance, is bad system.
 "Any system that permits improve more than a year without verification, is lax system.
 Any system under which three sepa- rate branches of one department handle funds, is bad system.
 Cites Other Cities
 Almost every city has a tax col lector or a city cashier, in addition to a comptroller, who handles all funds and is held strictly responsible for their safety. Triple checks are kept on all re- ceipts, thus enabling the comptroller, who is in reality the city auditor, to detect discrepancies within a few hours after they occur.
 "As the head of the department in which the recent shortages occurred and went undetected for a whole year, I shall insist on an early improve 'ment in the system and shall request the auditor who makes the forthcoming check to prepare detailed recommenda- tions on the subject.
 Concerning the suggestion that more business judgement and less po- litical favor should attend the naming of employees and officials in the de- pertinent, it is a matter of record that all appointments have been ra- tified by the entire commission and that the present or past comptrollers were fully consulted before action was taken.
 "A glaring headline quotes the comp troller as saying honesty is the chief need. Yet, if every official and every employe were always honest, there would be no need for a comptroller, or for bondsmen, or for an audit of the books.
 Centralize Responsibility
 My plan is to centralize the respon- sibility for the city funds. Certainly it will be easier to find one honest man and place him under heavy bond than to find several honest men to handle the money. One man should be respon- sible for all money passing through the comptroller's office. The comptrol- Ter should be given a system under which he would have direct, constant, triple check on all moneys handled. Other cities have such systems, and have caught shortages overnight. Bir- mingham taxpayers are entitled to the same safeguards.
 'The comptroller admits the utter hopelessness of the system now em- ployed when he announces he will not know where he stands until 15,OOO clt- izens who have paid assessments have brought in their receipts for checking against the books.
 Commission As Unit
 "The city commission is of one ac- cord in the present move to ascertain the whole truth in the department and get things adjusted, once and for aH' I hope for, and confidently expect to receive the comptroller's hearty CO., opera tion in installing a system that will minimize the possibility of subse- quent conditions as deplorable as that which now confronts us. Until such methods can be employed, trust the comptroller will make. every effort to keep constant tab on all branches of his department
 The developments of Monday failed to uncover any additional shortages, but officials fear. the worst when the payers of assessment begin to bring forward their receipts to the auditor soon to be named.
 The bankers committee will meet Thursday to name the auditor, and his work will be started immediately. The comptroller, all commission members and the county grand jury will cooper ate with him in every possible way.
 Defer Jury Action
 County Solicitor Jim Davis an- nounced he would defer the renewal of grand jury inquiry into the new short age until the auditor is named. He said William Lehman would be brought back from Kilby prison to testify.
 Something is rotten at city hall and we intend to get to the bottom of it." Davis declared.
 Gossip concerning the shortage con tinued unabated. Bets were even post ed that the total amount missing would reach $5O,0OO.
 Comptroller Armstrong prepared a written statement and handed it to re- porters. It follows:
 ''I assumed office January 1, 1924, at which time as readily as it could be done, the system in the public improve ment department that had practically ceased to function during the past two years was again put in operation and largely as a result of which some rath- CT startling and discomforting dis closures were made of irregularities that had occurred almost wholly prior to my administration.
 Tt is the sincere and earnest desire of the comptroller's office without being blatant in any way, and without any camaflouge or attempt on our part to detract the public's attention from the main issue-to get all the facts in con. nectlon with these defalcations and let the responsibility for these past condi- tlons rest exactly where they belong. We, of this office, when all the facts are once known, are quite willing for the public to appraise and judge our efforts to protect their interests.