Salt Lake Telegram | 1935-02-27 | Page 1 | Auditor Sores Bond Purchase

AUDITOR SCORES BOND PURCHASE Says Action Taken After efter Rejection S Charging Chargin taxpayers will fill suffer tremendous tremendous tre losses if such practices arc ate permitted to conti continue ue State Auditor Julius C C. C Andersen Wednesday disclosed dis dis- closed an issue of Provo city bonds vas bought by the state insurance fund the day after alter he rejected them themas as a land board investment The disclosure w was wa s made In letters letters let let- lers to Governor Henry H. H Blood and members of the 1 legislature The Thie cost t to the taxpayers in the I spread between purchase and selling selling sell sell- ing price in this issue was WS 2400 Mr Andersen s said id I His letter attacked senate bills and 2nd by Senator W. W II IT Hammond D. D Grand eliminating from the present statute a clause lause directing o the state auditor to pass on land board investments Mr Andersen recalled he turned down purchases ses by the land board of both bolh Provo city and Sanpete count county bonds b because of a high premium My office is now auditing the in insurance insurance f fund nd he wrote Ima Imagine Inc my amazement to find the bond firm whose transaction I turned down do was Wa able to induce indue purchase of these bonds Provo city and more of the same some i. i issue sue the thc next davIt day dav It is Js er obvious th that t when these transactions arc not kept constantly under the light of public knowledge questionable tactics of this nature will ilL not only continue but will be encouraged Mr Andersen inferred the law Jaw governing governing gov gov- ov checking on Investments should be strengthened