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<br />, "' ~---,,",<,.. 011 <br /> <br />, <br /> <br />r <br /> <br />. <br /> <br />-30- <br />under the system and transferred in one transaction by Gill to the <br />Riverside District. <br />We received the impression that the records >of the Riverside <br />District and the Riverside Company were very carelessly maintained. <br />Apparently Cecil osborne, and not Carl Kinkel, is primarily res- <br />ponsible for keeping the records since Kinkel seemed to know very <br />little about them. Kinkel stated to us at the time we were ex- <br />amining the records of the District: "I am no bookkeeper; these <br />things leave me absolutely confused." Osborne overheard this .com- <br />ment and concurred: "Carl is in the dark on this whole matter. <br />Earl Haffke (the lawyer for the District) also doesn't understand <br />how we handle this." This partially confirmed statements we <br />obtained from many sources to the effect that OSborne runs the <br />Riverside system as a "one-man show" and that the board members <br />and officers know little of what is going on. We did not obtain <br />any information which would indicate that there was any wrong- <br />doing whatsoever on Osborne's part; aside from badly kept records <br />and a rather cavalier attitude toward "kick-backs" obtained by <br />John L. Samples on water purchased by the Riverside District. We <br />found no evidence of mismanagement of the Riverside system. <br />OSborne told us that the officers of the District and the <br />Company leave signed blank checks at the office to be used in <br />renting and acquiring water rights. If a blank District check <br />is not available, a Company check is used and the District later <br />reimburses the Company. This appeared to us to be a rather loose <br />practice for a tax-supported entity. <br />We found considerable criticism from Riverside system far- <br /> <br />mers and others at what was described as a "closed shop <br /> <br />. <br /> <br />.. <br /> <br />" <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />WOODWARD_CLYDE.SHERARD AND ASSOCIATES <br />