Unlawful Payment Of Bonds Leaves Treasury Overdrawn

The city treasurer finished settling with the county treasurer Thursday and gave the county a check for $1,546.31 in settlement of county and state funds.

Without access to the city's books the Argus will not pretend to give absolutely accurate figures but as the treasurer reported that he had in bank March 2 $230.40 with no more assets, he must now have his account there overdrawn $1,315.91. This was what he claimed he could not do, and this is what when the question was up of paying the city labor, the Mayor's tender conscience would not permit. He said it was in violation of law. Out of his own mouth then his administration is convicted of violating the law. The banks contrary to what the Mayor said would be the case have permitted the overdraft.

To arrive at this depleted treasury and in order to make their figure juggling go with the people, somewhere in the neighborhood of $12,000 was paid out of the city treasury without any warrant of law. Bonds were paid before they were due. Bonds were paid without any warrant being issued for their payment. The city's money was paid out without any action of the council. It is the plain duty of the council to insist that all money so paid out should be replaced in the treasury. Then bonds due should be paid in the regular, legal and lawful way and the council should say what bonds shall be paid.

In the haste to deplete the treasury before the end of February, the bonds paid, it is said, do not run in consecutive order. Bonds which should have been paid ahead of bonds that were paid are said to have been left outstanding. Being denied access to the city treasurer's books it is impossible for the Argus to give numbers and dates. The city clerk has no check on the treasurer as the law requires, for bonds were paid without any warrant: being made out by him. And indeed he had no right to make out any warrant without authority of the council. When the bonds are destroyed as they should be, what vouchers can the treasurer show for the thousands of dollars he has paid out for them?

The state of Michigan never pays any of its bonds without a warrant by the auditor general. The charter makes it imperative that no money shall paid out of the treasury without warrant. It provides that school money shall be paid on the warrant of the school board and city money on the warrant of the clerk and mayor. They are only authorized to sign warrants passed by the council.

The clerk when he draws warrants keeps a record of them on his books and a record by funds, so that when he makes his monthly report, with a knowledge of warrants outstanding also required to be reported, the council can see whether or not the treasurer's report is correct.

When the treasurer pays out money without any warrant, the city clerk can have no record of it. His report, if properly kept, and the treasurer's, would show a big discrepancy when money is so unlawfully paid out. If this method of doing business is permitted all check upon the treasurer is lost, and the city might as well have a report reading: "Received so much, paid it all out."

We call upon the council to rectify this loose and unlawful method of paying money from the city treasury, done, we believe, in an attempt to deceive the people as to the real financial condition of the city.