The Waterbury Democrat., 1939-03-08

AICy. OIAW1OGQ TcSuLUcu 4lA0 C1USS" examination of MT. Purcell, as Wa terbury's conspiracy trial reopened this morning in this, its 14th week.
 c. MT. Purcell, you referred to during your direct testimony to what is called surplus resource sinking fund, and recall that on various papers offered as evidence there were some initials that you said you made "srsf." which refer to that fund. Will you give the jury the under standing of what the surplus re- source sinking fund is?
 A. Yes. It is a fund that Is pro- vided for in the charter, comprised of taxes not collected in the period for which they are due-back taxes =, certain assessments revenue and revenues received in excess; and the purposes for which the fund has been used are first, for the finances of the cash deficit If any, and the payment for any indebtedness and any particular audit.
 Q. Will it be fair statement to say that so far as resources are concerned that the revenues of the fund are revenues of any character, except bond issues and except the current revenues for the particular year?
 A. Any revenues not specifically pledged to other purposes
 o. We'll now, that fund, MT. Pur- cell, is administered by a commits sion?
 A. The Board of Sinking Fund Commission. ..
 @. The Board of Sinking Fund Commission has the same personnel as the Board of Finance?
 A. That's correct.
 @. The Board of Finance func- tions under the charter as the com- missioners of this fund?
 A. That is right.
 @. In 1930 how many of the sim liar members of the Board of Finance and Sinking Fund Commits sion were there, who had been mem bers of those boards previous to 1930?
 A. I don't know whether I can name them all.
 Q. Name as many as you can.
 A. Commissioner Goss, Commis- sioner Judge
 @. How many members of the Board of Finance in 1897 were mem bers at the time you commenced to work in the controllers office?
 A. Those same two, and it was possible that all the others. I am not sure about all the names.
 @. We will proceed and have oc- casion to work at some of the min- utes of the meeting and by looking at the names, you can answer the question more fully. You have re- ferred to cash deficits in your ex- plantation that you have just given about the surplus resource sinking fund. Will you explain to us what is meant in the accountancy proce- dure in the city of Waterbury by cash deficits, as you have used that term?
 A. The charter tells just what a cash deficit is. and it is the differ ence between the estimated resource in the budget and the actual re- source realized. If the realizations were less than the estimate that would be part of the cash deficit and the charter, at the present time. and very likely before then, provides also that the excess of expenditures over the budget estimates of expendi- lures would also be part of the cash deficit.
 Q. To get at 1t in another way, if the expenditures for the current year exceeded some total of the ap- propriations for the current year, that excess would be part of the cash deficit for the year. Wouldn't it? - '
 A. That is true.
 @. Now, suppose an instance of this sort. Suppose a particular ap- propriation in the budget for the current year was overdrawn. would that also get sometimes into the cash deficit?
 A. It did.
 o. Whether or not the sinking fund act originally contemplatesel in 1930--it was the amount as many times that went in the cash deficit. as 1t worked out in practice?
 A. Yes.
 Q. It Is correct to say that as it worked out in practice that when the total expenditures for the current year exceeded the total expenditures --I mean--when the total expendi- lures for the current year exceeded the appropriation, that excess went into what is called the cash deficit and the same thing was done when a particular appropriation also exceeded for which no provision for transfer was otherwise made--that also went in practice in the cash deficit?
 A. In practice, yes.
 @. The cash deficits that accrued in a particular fiscal year were kept by a deficiency appropria ton in the second year after that. Wasn't it?
 A. The second year following.
 @. Yes. The special appropriation put in the budget to meet cash de- ficits? Wasn't it?
 A. Yes.
 o. And the money realized from the deficiency appropriation went to reimburse the surplus resource sinking fund for the money it got over the will of former stockholder in the Connecticut Supply company at the probate court. While at the assessors office they talked with Bartholomew Scannel, a clerk.
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