University of South Carolina Libraries
■■ THE NEWBERRY SUN ' FRIDAY, DECEMBER 3, 1948 *£vm 1218 College Street NEWBERRY, S. C. O. F. Armfield Editor and Publisher PUBLISHED EVERY FRIDAY Entered as second-class matter December 6, 1937, at the Postoffice at Newberry, South Carolina, under the Act of Congress of March 3, 1879. SUBSCRIPTION RATES: In S. C., $1.50 per year in advance outside S. C., $2.00 per year in advance. COMMENTS ON MEN AND THINGS BY SPECTATOR What can the National Demo cratic Party do to South Caro lina, Mississippi, Alabama and Louisiana? Inat is giving some politicians grave concern. Of fice-holders may feel the Na tional Party’s displeasure, but since the gentlemen in office were appointed on the recom mendation of Senators and Re presentatives now in Congress we may be sure the men ia Congress will stand up for their menus. Senators Maybank. and Johnston are not likely to en dorse new appointments based on no reason except political reprisal. However, there is the striking fact that the great ma jority of South Carolinians hav ing voted the States Rignts tic ket, the States Righters can elect or defeat any candidate in this State. Nothing would so bind the States Righters together as < a few acts of political punish ment; or a few remarks like those of Mrs. Roosevelt. Men who become candidates might as well keep before them that the political power in thio State is in the hands of the Ami-Truman group. The presidency is a great office even when the President performs his duties in the let ter and spirit of the Constitu tion; but when a President acts according to whims we find the presidency too large an oppor tunity for doing things- which neither Act nor Constitutional provision allows. During the recent World War II. we heard much of the Pres ident’s War Powers. All that the Constitution has to say oi war powers are the following: “The executive power shall be vested in a President of the United States of America” (Ar ticle 2. section 1.) “The President shall be com mander-in-chief of the Army and Navy of the United State; and of the Militia of the sev eral States, when called into the actual service of the United States. (Article 2, section 2) “He (the President) shall haw power, by and with the ad vice and consent of the Senati to make treaties, provided two thirds of the Senators presen' concur.” (Article 2, section 2, clause 2). “ He shall appoint ... all other officers of the United States . . . whose ap pointments shall be established by law.” (Article 2, section 2, clause 2). Under none of these sections can be found authority to give away bombers and warships; nor can we read in them any auth9rization for the folly of the air-lift into Berlin which costs this Nation about $360,000 a day, every day. In order to see that the Pres ident’s power is not limited merely by his own whim we can see what the Constitution says of the actual control of the military forces. Says the Constitution, referring to the powers of Congress; “It shall have power— To declare war . . . To raise and support armies: To provide and maintain a Navy; To make rules for the gov ernment and regulation of the land and naval forces; To make all laws which shall be necessary and proper for carrying into execution the foregoing powers, and all other powers vested by this Consti tution in the Government of the United States, or in any department or officer thereof.” That is clear and conclusive. Presidents play with policies which are opposed to the Con stitution. By all the laws of war we should have cleared up the trouble in Europe before now. Nor should we have played the foolish game with Russia which has become an absurdity. There is no law—so far as I know—no sanction, for the fool ishness of the air-lift to Berlin. Without any law or appropria tion by Congress the Execu tive can bog the nation in the mire of debt by claiming to be orotecting or defending a real or fancied right. The Congress shouM curb the excesses of the Executive. The British could capitalize the American interest in the new royal baby. Some live Briton could sell millions of articles of baby clothing by de claring them to be perfect re productions of the outfit*of the new baby. No one is more in terested in the glitter and gla mor of royalty than Americans; It is passing strange until one remembers that American men are never so happy as when -ichly or gaudily dressed in the .-egalia of some organization. \nd this in increased a hun- ired-fold if the organization parches through the streets headed by a band. It cannot be denied; the tin- iel show—and a’ that—appeals 'remendously to us Americans, we of the simple tastes, you know. Just before us is the day of thanks. Thanksgiving Day. It is peculiarly American and goes back to the early settlers of New England who had weath ered a year of hardship and gave thanks for a harvest, a harvest that was the homely fare of a high-thinking people. America has again produced in great abundance, for which those who walk with Jehova give Him praise and thanks Thanksgiving brings me memories of my first year in Northern Peru. In the Andean town of Cajamarca. eight thou sand feet above sea level, I was stationed at first. We Am ericans and British carry our customs and festivals over the world and I thought of ap proaching Thanksgiving with a yearning for home. I was the only American within hundreds of miles—miles that could be traveled only on horseback, up and down the steep trails of the mountains. My nearest Ameican neighbors were in Pa- casmayo, two days away; they were missionaries of the Church qf the Nazarene. I couldn’t drop in on them; a visit required a good horse for me and a horse or mule for the baggage. There were no roads—only tra'ils for saddle- horses. Freight was carried on the backs of burros and Indi ans. An Indian with a wad of the coca leaf in his mouth could travel all day without food or water. Then when I had my horses I must needs asks for a military escort, for the barren plateau we crossed at 13000 ft. was a favorite haunt for robbers. So people travelled in groups or caravans as in Bible days. Two days to Chilete, to take the train; two days back; and a wait of two or three days in Pacasmayo, made quick trips a matter not easily considered. On one trip, however, I was in the port of Pacasmayo waiting for a ship to Callao, and it be ing the Fourth of July I called on my countrymen, the three or four Nazarene missionaries —the Rademachers—and we ce lebrated the Fourth of July to gether. While we were at the table I saw my ship, a couple of miles out, all ablaze with light, and left my fellow Am ericans to take the launch out to th e big boat—and on down the Pacific. ■I think it was Thanksgiving that made me want a cake, a layer cake. No one in that region had ever seen a layer cake or a fruit cake, or any kind of pie. Nor did they make ;ravy. Except for some Scot tish missionaries I would never have tasted any gravy. I didn’t ■niss the gravy, strangely enough, until I saw some in the MacKay home. I had many contacts with missionaries. Catholic and Pro- cestant. Among , the Catholic I may mention two, one a Franciscan and the other a Dominican, monk. The Fran ciscan, Padre Giner, had been in the wilds among head-hunt ers thirty years. He travelled six weeks up the Amazon Riv er and across the Andes to come to Lima. He was a man of God and a faithful and ef ficient missionary. The Dom inican monk was Padre Irogo- yen, a tall, handsome man who had labored in the remote and uncivilized regions of South eastern Peru. He was a devout man and ever zealous in his labors. The Scotch had a number of missionaries, most of them m educational work. Among them was a minister. John Calvin MacKay, fpr whom I had the warmest regard and the great est respect. I remember him now as the finest type of Chris tian worker, a spiritual Knight. Among the Protestants were British—of the Anglican church —Scotch of the Christian Al liance. The Americans were of the Nazarene, Adventists afnd Northern Methodists. I knew some excellent Jesuit instruct ors also, as well as some re markably able and consecrated QnAuAj&d Protection for your AwsirufA. Time to start Saying ...with $afety.Jcre! You will be surprised how regular savings will grow to bring you the financial independence you want. Liberal earnings are added Newberry Federal Savings and Loan Association Ursulines. The Nazarenes were a fine group, though small; the Ad ventists operated eighty schools, most of them in the region of Lake Titicaca. No missionary enterprise quite approached the school of the Methodists. They operated several high schools: and the Lima High School became a social center for Americans, many of whom dropped In for a cup of tea about four-thirty, and enjoyed an hour or two with the gracious ladies. I’ve seen twenty one gloomy days in succession in Lima, the little Scottish mist floating in the air. It was dismal and penetrating. Those “Who could leave made a trip to the moun tain town Chosica, an hour and a half away by train. There the sun was bright and warm ing; and one’s spirits respond ed. I seldom left Lima, but one Sunday I went to Chosica. As I walked along I heard wo men’s voices singing sweetly but softly “The Lord’s my Shepefd I’ll not want; He makes me down to lie In pastures green he lead- eth me The quiet waters by.” That is as I recall it. The Scotch girls and the English girl (all missionaries) were having their morning devotions in their room at the hotel. All the missionaries I knew were fine people. I knew them well because they were regu- lated and supervised by my of fice. That supervision included the Catholics also, with their many excellent colleges, among them 'those conducted by the Augustans, the Recoletans, the Jesuits, the Germans and the Salesianos. Of course the Cath olic University stood at tre head, its Rector, Monsignor Pe dro Pablo Drinot—--a Bishop— being the only beautiful man I ever knew. I had great regard for the Ursuline Mothers. They were very fine workers and extra ordinarily gracious spirits. I was able to help the var ious institutions and the mis sionaries. Padre Giner and Padre Irigo- yen I regarded as close person al friends: my relations with the archbishop were always cordTal. He was a man of sim ple tastes and earnest spirit. Once I received a telegram from my old town of cajamarca called Caxamalca in Prescott’s history. It came from my friend John Calvin MacKay and told me that he was being taken to Lima under arrest. I called on the Minister of Government, my friend. Doctor Garcia, long a Senator. Dr. Gar cia knew nothing of the arrest, but called several subordinates while I sat with him. The com plaint was that Mr. MacKay was disturbing the peace by his religious work. I told the Doctor what I knew of MacKay the genteel, lovable, mild-man nered man that he was, though a man of God without a flaw. The minister ordered the re lease of Mr. MacKay, remark ing that he could not disre gard my appeal. The Doctor was a good man and sincere. It is only an unimportant cir cumstance, perhaps, that I was the chief dispenser throughout the republic. OFFICER SCHOOL NOW OPEN FOR WOMEN Highly qualified women in Newberry between the ages of 19 and 28, now may apply for enlistment in the Army speci fically to attend the Women’s Army Corps Officer Candidate School. M-Sgt. Charles J. Smithers. local Recruiter, said today. ACCOUNTANTS REPORT Town of Newberry, South Carolina For the Seven Months Ended September 30,1948 ' October 29, 1948. Honorable A P. Salley, Mayor, and Members of Council, Town of Newberry, . Newberry, South Carolina. Dear Sirs: We have made an examination of the financial records of the TOWN OF NEWBERRY, SOUTH CAROLINA (D. I* NANCE, CLERK AND TREASURER) for the seven months ended Septetmber 30, 1948. This report thereon includes the following exhibits and schedules, together with the comments In the ensuing paragraphs: Exhibits “A” Statement of Receipts and Disbursements “B” Comparison of Actual with Budgeted Receipts and Disbursements Schedules 1 Details of Certain Income 2 Details of Certain Operating Expenses 3 Schedule of Salaries 4 Reconciliations of Bank Accounts While our examination covered only seven months of the fiscal ye^r, we have In cluded corresponding data for the first five months taken from the report of the audi tor for that period without further verification (see subsequent comments for minor difference in cash). We added this information in order to complete the town’s files of reports lor full fiscal years. \ Exhibit “A” and Schedules 1, 2 and 3, give the details of receipts and disbursements (adjusted for certain non-cash items to conform with prior reports). Comparisons of these adjusted receipts and disbursements with those budgeted for the fiscal year are set forth In Exhibit “B”. Schedule 4 gives the bank reconciliations to facUitate the subsequent examination. Exhibit “A” shows that revenue receipts for the fiscal year amounted to )175,135.i8 compared with operating disbursements of $191,117.99, Indicating an operating deficit of $15,982.81. Actually this Is not a true picture of the town’s operations for the year. A statement of cash receipts does not adequately set forth the fact that, due to the prac tice of several large taxpayers of jJttytng their taxes in advance, a portion of the current period's revenues were received In a prior period and that current receipts Include ad vance collections of revenues of the following period. Property taxes levied as of Oc tober i each year are applicable to the fiscal year beginning with that date While fines, penalties, licenses, etc., are taken up as income whefl collected. Adjusting for these ad vance collections of income we find: • Reported Income for 1947-48 $175,135.18 1947- 8 Taxes Collected Prior to 10-1-47 38,791.62 1948- 9 Taxes Collected Prior to 10-1-48 (18,309.57) 1947-8 LEVY DUE OCTOBER L 1947 Adjusted 1947-8 Income (Excluding uncollected 194T-8 Taxes of $3,728.91) ..$195,617.23 Less Expenses of 191,117.99 Excess of Income over Expenses -j 4,499.24 On this basis it would appear that the expenditures for the fiscal year were less thati the adjusted Income, although It must be remembered that operating expenses shown for the year are only those actually paid in the year and are misstated to the extent that unpaid expenses at September 30, 1948, vary from those at September 30, 1947. However, the fact that money must be borrowed and collections of the following years’ taxes must be made in advance to finance current expensies reveals that a deficit has been accumulated In past years and exists as of September 30, 1948. Since It has not been customary to record unpaid expenses at the close of the fiscal years, we have not attempted to prepare a balance sheet showing the exact amount of this deficit. The town’s 39 mill property tax levy Includes 20 mills designated for retirement Of the town’s bonded indebtedness. The payments made during the fiscal year to Mr. Thomas Roy Summer, Treasurer of the Bond Commission of Newberry, S. C., totaled $53,000.00, which Is the estimated amount allocable to them. We are informed that It has been customary to make an allowance for losses and Other costs and remit even sums without making a detailed settlement computation. ASSETS AND LIABILITIES The distribution of the town’s cash at the beginning and end of the periods was as follows: ^ The South Carolina, National Bank, New- 10-1-47 2-29-48 9-30-48 $ , 4639* $ 3,705.43* $ 115.40 3,56939 3,690.65 357.18 . 1340.42 3,465.34 \ 3,581.41 * $ 5,147.60 $10,861.42 $ 4,053.99 • These amounts are those shown in the town’s records and are $236 less than as reflected In the preceding audit. Our count of the cash on hand on October 18, 1948, showed an unrecorded overage of $71.60. Our experience has been that the current re cordings of overages and shortages not only gives better accounting control but facili ties the locating of errors. We reconcilfed the bank balances reflected in the records with those reported by the individual banks. The town’s very enviable record of property tax collections Is evidenced by the fol lowing tabulation; 1946-7 LEVY DUE OCTOBER L 1946 Total levy: Original Assessment—39 Mills on $2,546,480.00 $99,312.72 Additional Assessments—39 Mills on 6,250.00 243.75 Totals $2,552,730.00 Deduct, credits; Discounts Nulla Bonas Net Cash Advance Payments Prior to 10-1-46 10-1-46 — 9-30-47 10-1-47 — 2-29-48 3-1-48 — 9-30-48 $99,556.47 .$503.88 $420.22 109.01 207.48 $22,840.35 72,45333 1,07133 1,887.60 $503.88 $736.71 $98352.61 99,493.20 Theoretical Balance $ te37 Unlocated Difference 49.62 Total Levy: $2,716,850.00 $105,957.15 7390.00 298.01 $2,724,440.00 $108353.18 1 : : i .! i. ! • Deduct, Credits; Discounts Nulla Bonas Net Cash L i i Lal. ! -k • ' * Advance Payments Prior to 10-1-47 10-1-47 — 2-29-48 $361.32 3-1-48 — 9-30-48 $111.93 78.39 $ 38,791.62 59,895.46 3334.66 ! ! ' k ' ! ‘ k ’ ■ ' i , l. $38132 $19032 $101,921.74 102,49338 ..$ 3,759.78 : 29.70 Balance per Tax Duplicate—9-30-48 $ 3,730118 rr ; -ri Balance per Tax Duplicate — 9-30-48 $ 13.65 (The above balance collected prior to completion of our examination). The clerk and treasurer’s records do not control the accountability for buildings, equipment, and other such assets after they are purchased, therefore we have not In- ' eluded any data thereon in this report. During the seven months examined by us the town purchased two police cars and three street department trucks' anci sold one police car and siren, a net addition to equipment of $7,541.62. Unpaid operating expenses are not shown in the records, they being entered only when paid. At September 30, 1948, the books show the following obligations in addition to unpaid expenses: Unremitted Withholding Taxes . ♦ 632.40 ^ Bank Loan 20,000.00 , £ 1948-49 Property Taxes Collected in Advance 18306.57 INCOME AND EXPENSES Our audit of income items include (also see subsequent comments): 1. Property Taxes—Overall verification as tabulated In a preceding section of this report. . wMM 2. Penalties—Tests of application of prescribed rates. v 3. Licenses, etc.—Verified with license stubs dated within the period. 4. Fines and Forfeitures—Traced to Recorder’s Docket apd Receipt Record main tained by the Police Chief. 5. Street Duty Taxes—Overall accounting for receipt stubs dated within the period. All the above listed income together with recorded rents and miscellaneous Income were traced to bank deposits or accounted for otherwise. Our review of expenditures covered examination of vendors’ invoices and paid checks (except for cash purchases totaling $102.05). In considering the effectiveness of an examlnatiom, we are guided to a great extent by the adequacy of available records. Naturally this included making comparisons with records maintained by similar organizations. Believing that an Important part of the value of our services is to pass on to you,tre conclusions reached In these com parisons, we are submitting the following observations for your information. We wish to emphasize the fact that these comments are not to be construed as reflecting upon the honesty of character of any individual, but are being made solely with the idea of clarifying some of the accounting weaknesses existing in the town’s present procedures and records. The time to establish controls is while things are running smoothly, not after an irregularity occurs. It may also be added that where adequate controls do not exist, the effectiveness of an audit is reduced almost to qn arithmetical verification of re corded receipts and disbursements. The principle adopted by the more progressive municipalities as the most effective safeguard over receipts is the separation of the duties of determining the amounts to be received from the actual collection thereof, with periodic reconciliation of the two. Naturally this is not always feasible in smaller governing units, but should be applied where possible. Under your present procedure property taxes can be and are removed from the records by nulla bona entries without anyone’s written approval. We recom mend that the reason for and amount of each nulla bona be listed each mouth and approved by at least the mayor and one councilman. The present official record of fines and forfeitures Is the Recorder’s Docket which is written up by the clerk and treasurer from data furnished by the Chief of Police. This record bears no written indication of approval by the recorder, who is the one person having knowledge of the eases without having access to the fines. At present the Chief of Police also keeps a written record as well as the summons tickets for all cases coming up for trial. Would the town not have a better check on fines and forfeitures and at the same time eliminate a duplication of records if the Recorder’s Docket were written up from the summons before trial and lit the recorder write in the disposition of each case as a decision is made? The townspeople expect to receive written receipts for payments of taxes and licenses. Receipts should be,Issued for all money coming into the town treasury. It is assumed that receipts will not be issued to anyone unless he makes a payment, thus receipts rep resent money to the town and should be accounted for as such. The most effective method of controlling receipts Is to have them prenumbered and to preserve each one voided or not used. We recommend that separate, prenumbered receipts be obtained for each class of revenue as has been done for 1948-49 property taxes. It would be well to extend this practice to the police department thus conforming with procedures of the S. C. Highway Patrol and many other such aggressive organizations that have been confronted with this problem. We would also suggest that the town treasurer Issue a written receipt for all money received from the police department. There is a general trend In municipal accounting from the use of stubs for receipts, licenses, etc., to the use of carbon duplicates. This not only means less work but min imizes the possibility of differences between the original and retained record. W® recommend very urgently that the 1949 licenses be made with carbon duplicates with both originals and duplicates prenumbered. Otoe procuring and paying for goods and services is a big problem to municipal gov ernments. With the present separation of the Public Works from the other functions in Newberry it probably would not be economical to hire a full-time purchasing agent. It would seem reasonable to permit each department head to make non-recurring pur chases of less than say $50.00 or $100.00 without advance permission from the council man in charge and without obtaining bids. Each department head would be b«»»d respon sible for dividing the business equitably among the local merchants which Is always a big problem. Items above the decided limit kiould be purchased only fcpon approved requisitions and on a bid basis. In May 1948 the council decided to have the councilman Jn charge of each department approve the bills of his department. In our opinion the councllmen would be in a much safer position if they had the person actually receiving the goods or services indi cate such receipt on the invoice or a receiving slip and also have the department super intendent approve the invoice both as to quantity and price. Too, It would be well to have the town treasurer verify the arithmetical accuracy of all Invoices before presents ing them to the councilman for approval. Prior to May we noted many payments with no written approval. After May all disbursements other than for weekly payrolls were approved by the councilman in charge, frequently without any further notation of receipt or approval. During May 1948 the treasurer began to pay the street labor payrolls bty which was a decided Improvement over the old cash system. Here again the most effeotlre safeguard Is the definite knowledge of at least two people that each person on the pay roll is actually a person performing work for the town. We belieVe that the boolBi &