Show charges that washington and iron counties were deprived of legitimate i funds tor road and bridge work f the funds were used to finance the operations ot a private corpora tion made against the former state road commission in a report to state auditor mark tuttle by R C worsley of the firm of swan worsley and certified accountants who have been engaged in the audit of the books of the former state road commission this audit which covers the expenditure pend iture of approximately over the tour year period is not the state auditor in order that am as yet fully completed the report on the dixie power case Is made to mediate action may be taken to enable the state to get back the money involved the particular charges refer to the contract entered into by the former state road commission with the dixie power company whereby the state from the state road fund charged to washington and iron counties the construction of the transmission line between cedar city and st george on property owned by the dixie power company under a certain contract this contract was entered into with the idea in mind of procuring a cheaper power rate for the construction ot the proposed paved road from cedar city to st george engineers estimates showed at the time that whereas gasoline power would cost 26 60 per 8 hour day and steam power 19 60 per 8 hour day electric power would cost 8 per 8 hour day thus the former commission argued they would by the investment of 25 in the transmission line and transformers be able to provide a cheap elec trie power for road construction nork the money waa advanced and the line was built but the construction of the proposed cement highway between the two southern cities was sever undertaken now comes the question as to bow the state Is to get back its investment in the tension line under the peculiar wording of the contract investigation the matter was made the subject of a minute investigation by the auditors engaged in auditing the accounts of the former commission and the report ot this audit makes the following comments the road from cedar city to bt george is approximately 66 miles long we are advised by competent engineers that with 46 horsepower equipment the average number of feet of 18 foot concrete paving laid per day is linear feet it would require 16 6 days to lay one mile ot caving 18 feet wide it would therefore require daya to pave the 66 miles of road the estimated cost of electric power at the rate of 8 per day would amount to the dixie power was to provide at least two connecting points within each linear mile where tap lines not exceeding 1320 feet would supply the power demands ot the highway construction it appears that in addition to the cost of abo line as outlined above the state road commission would be required to purchase the material and equipment to carry the power from the points des Ignat edby the power company to the point where the power was consumed the line was constructed on a right ot way owned by the power company the right was given the power company to supply other customers along the power line no charge being made against the power company for such privilege the contract provided that the power company would purchase the power line from the state road commission paying therefore the cost of construction less any sums owing to the company from the commission for electric energy furnished paragraph VII of the contract provides as follows or for any reason the commission should decide to do no further work on said road then in that event the payments herein agreed to be made by the company shall at the option ot the company not be made tor a period of not to exceed three years aiom the date ot execution of this instrument the contract waa dated july it would appear that the company could not be requested to reimburse the commission for construction ot the line until july 8 19 23 the auditors report cites the 1919 session laws which provide that all road work not performed by convicts ot the state prison the cost ot exceeds Is to be performed under contracts to ba let to the low t after tw ll tor bids for such works and then points out that the construction of this transmission line was not advertised verti sed nor were bids requested report cites laws the report cites further that the liwa provide that money realized from the sale of bonds authorized to be issued shall be apportioned and spent by the state road commission apon roads and bridges placing the interpretation upon the statute that the purchase of transformers was a legal disburse ment of the state road funds it will be noted that the commission disbursed 75 for the construe alon of the transmission line where the estimated power to be purchased would amount to approximately 7 00 said estimate being based upon paving the entire 56 miles of road with paving 18 toot wide we are informed that it was contemplated that a portion of said paving was to be only 9 feet wide which would reduce the estimated power consumption based upon the estimate of 8 per day tor electric energy it would take working days or 12 years to absorb the cost of the power line while it apparently was not the opinion of the commission that the cost of the line would ever be consumed in the purchase of the power or road construction the data is presented with a view of showing that the commission could have determined that the expenditures or the construction of this line under the contract with the dixie power company apparently did not come under the laws which required that the money realized from the aale of bonds should be spent upon roads and bridges the cost of the power line construction st was charged against the money for road work it washington county the paved road was not constructed and the people of washington county have been deprived of the use of this money for road work while the dixie power company a private corporation has bad the use of the money for furnish ing power to their customers in other words the people of washington county were deprived of the use of this money for road work and it was used to finance the operations of a private corporation the matter has been referred by state auditor mark tuttle to attorn ey general harvey H cluff for an opinion as to whether or not the state road commission had the authority to make the expenditure and it the expenditure was legal whether or not the power company cannot be required to reimburse the state road commission deseret news |