The Waterbury Democrat., 1939-03-08
Finance Board Records ShowMoney Diversions
Continued from Page l,

the controller had agreed to pay him $4,000 yearly following two weeks trial. He said that he got $3,500 the first year, and Leary finally gave him the $4,000 in 1881.
 Payments to him of $67.26 under date of January 3, 1881 and Septem- Der 26, 1881 were read into the rec ord. While getting $4,00O yearly, his weekly salary was $76.92.
 Federal Agents Confer
 Federal authorities again con- ferred with Judge Inglis today, but no explanation of the subject un- der discussion was given. It is un- derstood that the federal authori- ties have been given permission to photograph the various state ex- hibits which have been admitted in evidence.
 This was the 44th day of the trial, the start of the 14th week, and the start of the 14th consecu- tive day of testimony by James P. Purcell. It was his second day of crOSS-eXammaClOn.
 Attorney Thomas F. McDonough, counsel for Alderman Thomas P. Kelly, whose illness delayed the trial from opening on schedule yes- terday, appeared today. He was al- lowed to return to the trial, only on the consideration dictated by his physician, that he be as quiet as possible.
 Crawford Opens Fire
 Attorney George w. Crawford, who was cross examining Purcell when the thirteenth week of the trial adjourned last Friday, took up again this morning, immediately after the jury roll call had been taken. His first question indicated that the morning was to be one filled with technical testimony con- corning the surplus resource sink ing fund.
 In answer to his question, con- corning the fund, Purcell replied that it was a fund provided for in the charter. It is composed, he said of revenues realized from back taxes and certain assessments not estimated in the budget = also re- venues received in excess of esti- mates.
 Its use he said was in connection with financing of deficits and pay ments of floating indebtedness and the retirement of bonded indebted ness. The fund, he said is admin istered by the board of sinking fund commissioners, which comprises the same personnel as the board of finance.
 Members In 1880
 Former Commissioner Charles A. Babin, Commissioner Goss and Commissioner Judge were members of the board in 1930, who had been members prior to that time, Purcell testified
 Purcell could not answer with certainty as to whether those mem- bers comprised all in that category, but Crawford, said, Well have oc- caSion to look at the minutes of the meetings as far back as 1930."
 The spectators row was crowded to capacity today, as the cross-ex- animation of Purcell actually got underway. Many of the observers were women. But the fireworks which had been anticipated failed to develop during the morning session. Until the 11:30 recess, the questions asked by Crawford and the ans- Wers given by Purcell were in steady and n11iet tOnpS
 Meaning of Cash Deficit
 What is meant by a cash deficit, as you use the term?" asked the at torney.
 In reply, Purcell, in his quiet tone said, "The charter tells that it's the difference between the estimated re- sources of the budget and the actual resources realized. If the realization is less than the estimate, that is part of the cash deficit" A long discourse on deficits followed.
 Suppose an appropriation is over drawn, is that part of the cash deficit?" asked Crawford.
 "Yes." was the reply.
 Purcell said that cash deficiency was met by deficiency appropria- tion put in the budget the second year after the deficiency. The funds for the deficiency came out of the surplus resource sinking fund:
 Practice in 1930
 Tt is true, isn't it." asked the at torney, "that in 1880 when you took office, you found it a practice by the board of finance and the board of sinking fund commissioners to pay current debts out of particular funds?"
 Purcell said that at the time the charter commission investigation was going on and the accountants arrived at a condition involving all special funds, and found that there had been diversions ;. z. and the surplus fund was obligated to restore to the special funds all such diver sions.
 Crawford asked the state to pro duce the book containing minutes of the board of finance from August 16, 1928, to March "A, 1930. It was found that the book was marked for iden- tification only, and had not been admitted as a full exhibit. Alcorn said that he desired to have it en- tered as a full exhibit. but Crawford recalled the objections of Attorney Benjamin Slade to the admission of the complete book in evidence.
 Reading Is Stopped
 When Crawford started to read from the book. Judge Inglis stopped