The Birmingham age-herald., 1924-07-13
.LAXTTY BLAMED FOR SHORTAGES
 IN CITY FUNDS McLendon Advocates Post Of City Cashier To
 Handle All Money
GLASGOW SAYS CASE
 WITH HIS ATTORNEY
Bank Presidents Asked To Select Auditor For
 Exhaustive Check

Laxity of the system in the comptrol- lers office was blamed Saturday by Commission President D. E. McLendon for continued disclosures of city hall shortages, the late. which G to light Friday and resulted in an immedi- ate increase in the bond of W. H. Glas- gow, former head of the public improve ment department, who is under indict- ment.
 To remedy the situation, McLendon plans to ask for the creation of the post of city cashier. This official would be heavily bonded and would, in reality, be city tax collector, handling all funds that pass through the eomptroller's of flee.
 At present." McLendon said, "per- sons in three separate branches tf the comptroller's office are handling funds. Under the antiquated system employed, l crepancies. ThiJ system must be changed and the financial responsibility concentrated in order to guard against possible theft. In addition, l will seek to install a system whereby there will be a constant, direct double-check of all city funds"
 In consequence of Fridays disclos- ures, which showed an additional short age of $5, ,969.3 .39, bringing the total since William l.. Lehman defaulted to more than SIS, 1000, the city commission Sat urday asked the grand jury to renew it's inquiry into the public improvement fund. A resolution also was passed calling on the presidents of the five Birmingham banks to select an auditor to begin immediately an exhaustive check of the books in the department.
 Grand Jury To Act
 County Solicitor Jim Davis said the grand jury would be called into session this week. The committee of bankers composed of W. w. Crawford, Tom O. Smith, John H. Frye, Oscar Wells and J. c. DeHoll, probably will meet early in the week. The committee was asked by the commission to select an auditor who has had no professional dealings with the present administration.
 We would prefer an auditor whom none of us know personally" said the letter which President McLendon ad- dressed to the bankers.
 The commissions session Saturday was held behind closed doors, but was harmonious, every member present ex- pressing desire to go to the bottom of the situation immediately.
 The commission resolution asking a special grand Jury probe urged that the entire administration be investi- gated, from the lowest to the highest official" and that full responsibility for the situation be fixed.
 Receipts Wanted
 McLendon said the 15,OOO citizens who during the past three years have paid improvement assessments would be asked to bring forward their receipts in order that they may be checked against the books in the improvement department.
 There is no other way to ascertain exactly where we stand" President Me Lendon said.
 The commission president said he would take steps immediately towards recovering as much of the missing money as possible. Glasgow's bondsmen were officially notified Saturday of the additional shortage disclosures.
 Glasgow, following hls arrest and subsequent release Friday night, spent Saturday at his home. He flatly re- fused to talk, but indicated he would leave his case entirely in the hands of bis attorneys.
 Solicitor Davis plans to ask this week for an increase in Glasgow's bond from $7,500 to $15,000 L $20,OOO. Glasgow will go on trial on embezzle- ment charges next fall in circuit court.
 Present plans of city authorities call for start of the new audit this week.
 New System NeedeL
 President McLendon said it was diff ficult to understand why officials of the comptroller's office had not checked the public improvement books for past due payments.
 ''The $5,969.39 assessment of the Birmingham Electric company" he said, 1 had been past due since last July. I think these overdue items should be frequently checked by sending out let ters to the debtors asking them to veri- l fy the items.
 I've have had worlis of trouble in the comptroller's depar +ment during this administration, and 1 am going to leave nothing undone to get the situa- tiOn strengthened out. The advice of the new auditor, the grand jury and my associate commissioners will be earnest ly sought.
 It is clear that a new system of handling funds and checking payments is needed in the department. Friday disclosures, coming after we ha. hoped the full extent of the shortage was known, proves this"