Douglas daily dispatch., 1927-01-28
SAYS Highway
TMENI
is SOL VENT
Lefebyre Tells Legislative
Committee Deficit Could
Be Met.
PROBES
Assets Exceed Liabilities If
Liquidation Had, Says
Engineer.


PHOENIX, JAM 27.-B-The state
highway department. is solvent, w. G.
Lefebvre, state highway engineer, tes-
titled today before a joint legislative
committee appointed to inquire into a
100000 deficit in the department.
Under oath, Lefebvre declared that
the department, if closed tomorrow,
would have sufficient assets to meet
it's liabilities. Beginning with finance,
the questions put by Senator Sutter of
Cochise covered construction costs,
force and contract work, departmental
organization and politics.
Sutter said just before the commit
tee rose that "there will be road legis-
lation undoubtedly at this session. The
one idea We brought here was to take
this department out of politics. Ads
dressing Lefebvre, the senator from
Cochise said: "The questions we have
directed to you are not addressed to
individuals, but with view to pulling
you and the department. out of a
slough that threatens to engulf the
state.''
The testimony was given to a com
mittee consisting of Sutter, Thornburg
of Yavapai, and Waters of Mohave,
from the upper house; and Representa-
tives Abell of Cocnise, Bush of Yuma,
and Slipher of Coconino.
Sutter, who did the questioning for
the most part, appeared astounded
when Lefebvre made the statement
that the department was solvent.
when the appropriations committee
makes out it's budget for the next BIZ
ennium," he demanded, you want us
to consider that this highway DEPART
ment since 1923 has been solvent?"
"The highway department is SOL
vent" repeated Lefebvre.
"Was it in 1922"
II don't know"
"If the department were closed to-
morrow, would it have sufficient as
sets to meet it's liabilities?"
Assets, yes" said the state engi-
neer
'pThere are even certain legislators"
observed Representative Abel at the
close of the hearing, "who would
rather see highway work cease en-
tirely than to watch this department
keep on laundering as it is now"
Lefebvre was the principal witness,
and Chief Engineer w. w. Lane was
the only other one.
A long series of questions and an
swers drew from Lefebvre the conten-
tion that if a receiver were appointed
and the sheriff should close the doors
of the highway department tomorrow
all it's creditors would be paid in full
and there would be something left out
of the liquidation of it's assets.
Lefebvre said he took over the de-
partment four years ago with a large
floating debt which he had been able
to reduce in part, but not to lift in
whole. What he asked, he said, was
more working capital sol he might
not be continually forced to rob his
projects in order to take up back bills
There wasn't a merchant in Phoenix,
he said, who could pay all his bills in
cash tomorrow.
Explaining the ''imprest fund" re-
ferred to in an opinion by Attorney
General Murphy yesterday in connec-
tion with the highway departments
finances, Lefebvre explained that the
fund was created by the legislature to
expedite the payment of payrolls and
had been limited to $4,000. the amount
of the state engineers personal bond.
What asked Senator Sutter, lis
the average amount carried in the i'm
prest fund?'
about $4,000"
Shown a page from the fund ledger,
carrying amounts well in excess of
100000, Lefebvre said the $4,000
limit had never been exceeded because
amounts over that represented month
| ly transactions, not sums in the bank
! at any given time. The engineer ex-
planned in reply to Suffers questions,
that the department purchased only
for it's current needs, and that it in
Cured liabilities when the engineer
knew there We're revenues to take them
+, up.
! At the present time, Lefebvre con-
| tinued, the department had cash on
Continued on Page Eight