The Waterbury Democrat., 1938-05-14

Last week the controller an- rounced that after he had been told to attempt this procedure following his suggestion that surplus city money be deposited in Hartford, contrary to the charter provisions which he has cited several times since taking office. It was Controller Rowland who pulled large sum back from the Bank of Manhattan Company early this year on the theory that the charter does not allow deposit of city money in out of Waterbury banks.
 Money Here
 Then, when the city's coffers showed approximately $1,800,000, this after the controller had sub mitted that he believed he would have to borrow $300,000 ito meet payrolls and current expense" few weeks ago, the controller found that the local banks could not handle this amount as 1t represented more than 30 per cent of public funds allowable as deposits in proportion to capital assets. So, the board was informed that this money remains in Waterbury, in violation of the banks restrictions and beyond the direction of the board that the con- troller attempt part payment of the June IS obligations at once.
 The controller was in receipt of an opinion by Corporation Counsel Charles 8. O'Connor yesterday giv- ing him power as purchasing agent beyond the state statute allowing the board of education this right. But, he also was informed that he must issue orders for supplies which were ordered and received by city departments early this year, orders which he said he had not approved and refused to pay.
 Supplies Needed
 The board of finance instructed the controller to make such orders himself after assurance that the supplies were necessary. The corpor- ation counsel's opinion on the board of educations request for a ruling on its rights to purchase supplies in- cluded the citing of the charter pro- vision whereby the controller must call for sealed bids for all contracts for work or supplies in excess of $l,000 and that these bids must be competitive, obviating the conten- ton of the controller that his re- gime differed from others in that he was going to buy from competitive bidders"
 The report of City Treasurer Ed ward L. Futile for April 30 showed that the city has $1,511, ,822.91 in local banks. In connection with the tTeasurer's communication that it was 8 physical impossibility to get the report to the board immediately after the first of the month because the controller could not supply a breakdown" of items at that time, Commissioner Major w. Judge re- reated his contention that charter requirements that the report be rendered to the board on the first of each month must be adhered to and the board directed that the treasurer and the controller CO., operate to see that some report is made as stipulated by statute.
 Opinion Asked
 In the matter of repairing of pro- viding $5,000 to make repairs of streets in Watertown torn up when section of pipeline was laid, the board asked the corporation counsel If the condition presented a hazard and voted to request the board of public works to inform the finance board that such a condition does exist. Money for the repairs is not available in the bond fund of the engineering department and Corpor- ation Counsel O'Connor informed the board that unless the repairs are made, Watertown authorities may do the work themselves or have the state make repairs and send the bill to Waterbury.
 MT. O'Connor also informed the board that costs incurred in pre- pairing the two bond issues f1oated recently may be taken out of the bonds premium, or, if inadequate may be taken from bond proceeds.