Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1873-05-10
Sworn to and subscribed before me this 5th
day of May, 1873. l-l. nNi
Minority Report OF the Finance
Investigating C0mmItteo.


To the General Council Of the City Of Mem
phis;
The undersigned would respectfully ask to
file the following report, viz: J.H.giei.is
After investigating carefully tho charges
preferred against Mayor johnson by Colonel
Geo. X. Phelan. we find that the Mayor did
enter into combination with Messrs. Green
law and harrington TO purchase bonds of the
city Of Memphis on speculation, and that
paid purchases were made TO the extent Of
fhrce hundred and ten thousand dollars Of SAID
bonds. and that net profit Of ten thousand
dollars or thereahoutsto each ones share
say thirty thousand dollars on the entire
transaetion-was made. .lSec testimony Of
VIM. NJ. Farington.) With reference to
charges by said Phelan against said Mayor
ton with one MIR. Tobey. late President Of
City" Bank, we find that the charges are
not sustained. so far as relates 10 the gold
bonds. but we find he did engage with said
Iobsy e nnsS Sna
twenty-five thousand dollars Of these bonds,
upon which there was profit made of about
$1,000 each. With rotsrenee to the loss to
the city in the transaction of Mayor J Johnson,
with said robey. tits in proof that tho city lost
some fifteen or sixteen thousand dollars by the
failure of the City Bank, of which Tobey was
President, butlwe do not find that this loss
was caused by speculation, but on account of
the Mayor not being posted MS to the condition
Of said bank. lSee Tobey's testimony9 lomm-
----lV'V tHDN MONDAY, May 5, 1873.
We this day examined Colonel W B Green
law, and find but little difference between his
and Colonel Farrington's testimony, pointing
to the speculation between Messrs, Earring
ton, himself Colonel e. and Mayor john
son in said bonds, He states under oath that
they were engaged in said speculation. (See
Greenlaw's testimony. .~...sg Gr4.n
After a careful examination as to the law
prohibiting the Mayor from such speculations
in bonds" we think that section 7, city
ordinance, was intended to prohibit all city
officers from specializing in city securities of
any sort, but unfortunately does not go far
enough. II reads; 20 gil1lr !,
mo officer Of tho city shall purchase or soil
any city scrip or warrants on speculation, and
no officer shall loan out or use on his own ac-
count, on any pretext, any money of the city
in his hands. or on any pretext pledge or loan
any Of the property, notes or bonds or other
securities of the city, except as ordered by the
Board Of Aldermen. and the doing Of any Of
these is hereby declared sufficient cause OF
removal" .a t. ...l..,, Il
we believe this ordinance was drawn up
with the express intention to prohibit all city
officers from spsculating in city securities, but
unfortunately did not go far enough to say
"bonds," as was doubtless intended by the
drawer Of said 9TH section Of City 0rdi-
nance. We think, and hereby recommend,
that cur City Attorney be requested to draw
up an ordinance TO fully cover the case, viz !:
Prohibiting all city officials from Specializing
1
Of the city of Memphis, in any manner, shape
or form. In conclusion we think the Mayor
is censurable for being connected in the fore
going speoulati0nswith the aforesaid Earring
ton, Greenlaw and TObey. A..gis. D.
Since the foregoing was written | find this
will be minority report, all the balance of
the Financial Committee disagreeing with me
ms to the results Of the Investigation, but my
conscientious convictions are that section
Of the City Ordinance was intended to pro-
hibit any speculations in city securities by
any city official. especially the Mayor and
General Council; hence / cannot agree with
tho majority. and respectfully ask where
" We" is used that L" be substituted.
All Of which respectfully submit for your
consideration. j. j. BUSBY,
81 Member Of Finance Committee.
Tabled by Board Of Aldermen May ., 1873 :.
Report received and laid on the table BY
Council. The yeas and nays being called for
stood az follows, to wit; Yeas-Councilmen
Hewitt. Chase, ;Beehn, Droesher. R9ush,
Shaw, Couston, Clarke, Bingham, TOof.
hunt, White, Hughes, Grant. Simons, Smith
and Mason. Nays-Holbrook.