Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1875-04-10
Examination Of Mr.. Treasurer Kelly,
Er. Comptroller BeWsOm, and His
Honor, the ::Msyor-A Written
Statement Of Mr.. League.
He DeEies Having Used the Interest
Fund, and Says II Cannot be So Used
on Account OF the Injunction
Restraining Its Use.
A Very Tart Document, and One that
VIII Create a Breeze In City Cir.
cIes-MOre 10 Come, and a Coed
Time All ROund.

The special committee OF the general
council, composed Of COuncilmen Hew-
lit, Fisher and Ryan, and Aldermen
Dent and Borti, TO investigate the
charge OF the finance committee to the
effect that Mayor League had violated
section fifty-six OF the city charter by
borrowing from the city treasurer, Mr..
Martin Kelly, the sum Of ten thousand
seventy-two dollars and fifty cents, from
various funds required to be kept sepa-
rately, was called to meet in the city
hall at four o'clock yesterday afternoon.
All members were present except Coun-
Gilman Ryan, and the meeting was
called TO order at twenty minutes to five
O'Clock. We herewith present the
FINANCE COMMITTEES REPORT.
Your finance committee beg leave to
call your attention to the condition Of
the city finances, which they find, after
a careful examination Of the city treas
Urer's books, to be as follows: There
should be an interest fund on hand Of
$50, ,442 81; Mississippi River railroad,
S7O55 so; wharfage fund, Sl4S6 OF; total,
S3S, ,9SI 81. The treasurer shows that
he has on hand the following amount,
So, $50 90; and represents that there is
in the Emmet bank under garnishment,
5000; also in the Union and Planters
bank, Sl250; total, SIS, 9l2 SO; showing
deficit Of Sl0,072 Is, which he states he
has loaned TO the mayor, who informs
US that he has used it as follows: Paid T.
+. Brown, D1dnddnluseS, S94S IS; used
for other purposes, S9l23 80; total, Sl0,-
072 Is. In making this report your
committee beg leave to call your atten-
ton to section So Of the city charter,
which reads: "The general council shall
have power to levy special tax for the
sole and special purpose Of paying the
interest as the same may become due
on the bonds issued by the city. The
said tax shall not be greater than may
be necessary for the purpose. A separate
account shall be Kept, and the money
recSived under it shall not be applied to
any other purpose whatever
J. 7. HILLSNAN,
y. J. CAMP.
Councilman Fisher was appointed Sec
retary, and the investigation COM
menced by the
EXAMINATION OF CITY TREASURER
KELLY.
Question-Mr. Kelly, did you comply
with the suggestions of the finance COM
mittee regarding the deposits-thSt is,
to make them in the banks designated
by ordinance?
Answer-I was going to do it, bat was
awaiting some action to be taken.
Q.-Whst action were you waiting
for? That Of the city council?
A.-1es, sir.
Q.-Are the funds in the condition as
we found them?
A.-Yes, sir, like the report which
made you at the last meeting. Here is
Il. nd Il " 10 oh q
the warrants on which / have paid out
amounts.
Owe requested you to deposit the
Mississippi River railroad tax fund in the
Union and Planters bank. Why did
YOU not do it?
Al was waiting for the taX-collect-
or, as there was more to go to this fund.
Q.-Yes, we know that there were Sl7.
What disposition have you made Of the
slidnddBaus fund in this report?
A.-All / have 10 say is that l pay
these warrants as they come in from the
mayor. paid them just as the money
was in the box. do not know out Of
what special funds these amounts were
paid; but think it was only out Of the
Mississippi River railroad and wharfage
funds. i paid out the money only in
warrants, and all in one. keep the
accounts separate, but can't say that in |
paving the warrants, as given in the re-
port, whether took the money SO used !
out of the Mississippi River or wharfage |
fund. The amount paid on the warrants
is SlO,62l Al.
Q.-Now were you not aware that to
pay out this amount you would have to |
infringe upon the interest fund?
A.-Well, don't know.
10 apf
porI (memorandB) before you, from
which the committee take their report? |
Alt may have been correct at the
time il was taken, though at that time l
did not have my credits on the book,
which makes difference between that |
and my report.
Q-At the time il was taken, was it
cOrrect2
A.-Yes, sir, 1t might have been.
Q.-Then did you not know that to
nav out the $4,000 would infringe upon
the interest fund?
A.-Well, YOU will always find my
general fund behind according TO the
monthly reports; only pay out money
on the mayors warrants.
Q.-Do you not understand the ordi-
nsl, ces on the subject?
A,-Well, you see for yourself. The
money was paid out on the mayors
warrants, but don't know from which
funds.
O-We understand that you kept all
the accounts in common, and paid all
warrants out OF the general fund.
A.-Yes, sir.
o Mr.. Kelly, why did you not de-
poslt the money in the bank designated
when instructed by the finance commit
tee?
Al had deposited the funds there,
and thew were epjoine1. did not know
what 10 do, Rnd saw Mr.. Camp aboutit.
You acted very wrong in not having
de,,osited the money there, for 1t could
NOT have been disturbed. We believe In
chewing orders il it breaks us, and We
would ike TO have reported that yon had
obeyed the instructions. 1t would have
given q bright phsse TO the report.
This closed the examination OF MI.
X elIy, and the committee next went
intO the
EXAMINATION OF CITY COMPTROLLER
NEwsoM.
O-Mr. NewsOm, do you recognize
the report OF the city treasurer as cor
rect2 Does ii show that any balances OF
any other funds on hand save those
mentioned therein?
A.-SO, sir.
Q-Is il your opinion that If the ten
thousand dollars were Withdrawn 1t
would have to infringe on other funds?
A.-Yes, cir.
EXAMINATION OF MAYOR LoAGUE.
Mayor League was then called In,
and the following examination made by
DR.. Hewitt:
Q.-Mr. League, We have here trans
criDt condensed from the treAsurer's
hook which gives the interest fund on
hand st $50, ,442 81; Mississippi River
railroad fund, S7055 so; wharfage fund,
Sl4s6 o., which leaves no general fund.
Were you aware Of that fact when you