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<br />f'~!f <br /> <br />~'" ;',-'" <br /> <br />I.. <br />t <br /> <br />-21- <br /> <br />received payment from Wu1f for the two private rights he leased <br /> <br />to him. <br /> <br />The records do not show any water order for Wulf, signed <br /> <br />+ <br /> <br />by either Stratton or Gill. Cecil Osborne, the Superintendent <br /> <br />'. <br /> <br />of the Riverside system, told us that transfers of this type are <br /> <br />. <br /> <br />often telephoned in to their office, rather than being handled by <br /> <br />signed "water orders". Osborne stated John L. Samples, the Water <br /> <br />Commissioner, frequently handled such transfers without ever enter- <br /> <br />ing them on the Riverside books. If so, it is difficult to under- <br /> <br />stand how the Riverside knows how much water to deliver out of <br /> <br />its ditch to Wu1f. opportunities for fraudulent dealings are ap- <br /> <br />parently wide open. <br /> <br />As another example, F. W. Sege1ke leased three Riverside <br /> <br />foreign private rights to "Winger" and "Schwanke" during 1966. <br /> <br />There is no record of this transaction in the Riverside office. <br /> <br />(It should be recalled that the NCWCD keeps records of all <br /> <br />seasonal leases of its water rights, and allows the transfers <br /> <br />only after the receipt of signed "water transfer orders". While <br /> <br />many persons stated to us that the Riverside Company operates in <br />a similar manner, the actual books do not reflect this: We are <br /> <br />., <br /> <br />recommending that the Riverside Company maintain complete records <br /> <br /> <br />. <br /> <br />of the seasonal transfer of its shares, and allow transfers only <br /> <br />after receipt of signed "water transfer orders", such as is done <br /> <br />by the NCWCD. Such a recommendation, if implemented, would remove <br /> <br />. <br /> <br />one of the largest possible areas of improper conduct and would <br /> <br />. <br /> <br />tend to restore the confidence of many people in the integrity <br /> <br />of the operation of the Riverside system). <br /> <br />In addition to its storage priorities for the reservoir, the <br /> <br />WQOOWARD.CI.YPE.SHERARO AND ASSOClA1ES <br />