The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-01-16

arrangements with the county treasurer 20 get
the money needed. The law allows the treas
urer to keep the money until certain dates, and
the courts sustained the custom of the treas
urer to loan the money as if it was his own, as
legal action. Therefore, If it be legal to loan
said money it is legal for the School Board
to borrow IL, and at the same time judicious IN
both parties, because of the safety and cheapness
1.-The finance committee now feels called upon
to explain why it did not adopt the
plan of the treasurer to take the money
ments. and to state why it did
not make the explanation sooner.
By our treasurer's plan we would have had to
borrow the full amount needed at once, and to
pay interest for the full time, for the full
amount, while the finance committee tried to,
and succeeded. in borrowing it in small
sums and to pay interest on these
small sums on short time by which it
saved about So 600. Our treasurer told us at the
time we could not accomplish this, and even told
US that he had assurances from the county
treasurer that we could not get it from him.
This was at time when the committee had
the promise from him that he would furnish the
required money. The county treasurer told the
committee that Mr. FrenZel insisted that he must
not let us have it and that his bank would pay
him higher rate of interest This induced us to
keep the transaction secret from our treasurer,
who, by his action, tried hard to Illustrate
endeavors AS far as the discourtesy in not con-
sultlng our treasurer was concerned, il was ex-
tended to him as long we thought it
compatible with the public interest but
was withdrawn when said interest was
jeopardized. Other reports confirmed our be-
lief that our treasurer would use his influence
in every possible direction to Illustrate our en-
deavor to borrow the money from the county
treasurer, and, therefore, We did not dare to di-
vulge our plan to him."
MR. FRENzEL's REPLY.
In reply to the assertions regarding his con-
duct as treasurer, Mr.. Frenzel said: ..In the
short time have had to listen to the statement
of the chairman of the finance committee, had
almost made up my mind that it is unnecessary
to reply to it. I think it is humil-
iating to reply. 1t is absurd, there
being not one word Of truth in it
but l will say a few words. In the first place.
the statement in regard to myself and the re-
port of the COMMITTEES further on presents clear
inconsistency The committee says, in the first
place, that they did not consult the treasurer for
reasons as stated. and further on they state that
at every stage OF their proceedings they
as to first offer to him every loan
afterwards negotiated with some other party
will take up their statement 1t is true that
banks seek deposits-that is part of their bust
ness. They make money on their deposits. but
a man holding public Office, if he is true to the
trust imposed upon him, must not allow his
greed for money or personal advantages of any
kind to stand In the way of the strict line of
his duty. l have always endeavorei to follow
this principle. The Merchants National Bank
did not want the money. As proof, can say
that believe my bank to be the only bank in
the city which has positively refused to have any
deposits of either the State, county city treas
urer, either for nothing or otherwise. Messrs
and have and can testify as to the
truth of this statement The latter
is personal friend, and did his
private banking at our bank, and you may ask
n - so~ Co A,1,- l.,
posite of public money which he offered. saying
to him, in all kindness, that it pride with
our bank to be able to say that we had no de-
post of public moneys. / mention this merely
to show that man can rise above the greed for
money or any other personal advantage, when it
becomes a matter Of honor and public duty.
/ never was called upon to consult with the
finance committee. The assistant secretary apol
ogized to me for neglecting to invite me to the
first meeting of the finance committee, at which
cussed The chairman, Mr.. Merritt, was in
vited, Mr.. Thompson was also present, but not
withstanding had been a member of the old
finance committee for three years, it was thought
best to leave me out, and this too before any
negotiations had been begun. l saw Mr.. BAN
berger once; he told me that Cincinnati parties
to whom he had offered the loan refused
to tske it. made calculations with him as to
the difference in cost of borrowing all the money
DIT once at 5 per cent, or from time to time as
needed at higher rate, not knowing then that
any negotiations had been opened with anybody
for loan as needed at per cent / will ask
Mr.. BAN berger IF this is not So and if this was
not the first and only time I had ever spoken to
him on the subject of temporary loans" Mr..
Bamberger answering affrmatively. Mr..
Frenzel proceeded: II saw Mr.. Vonnegut
only once, Mr.. THOMPSON being present.
1t was after meeting of the board, while walk
ng homo together, on Market street. told Mr.
Vonnegut that I thought the best thing the
board could do was to borrow the full amount
needed at per cent; that did not believe they
could get the money just as needed for per
county treasurer. never saw him on the SUBJ
ject before or afterward., Is this not true, Mr..
Vonnegut?"
Mr.. Vonnegut-Yes.
remarks to the chairman of the fiuance COM
mittee, for, as Mr.. Bamberger has stated the
other member did not know what was going on
but having confidence in Mr.. Greenstreet, left
everyt thing to him. saw Mr.. Greenstreet sew
eral times in my Office. He never came Of his
own volition, but when I sent for him. told
him that when he got ready / could probably as
sist him IN placing the loan; that during my trip
to the East had taken pains to speak to several
parties about the temporary loans Of the School
Board, and that any time he wished /
would help him. / never offered to loan
him 800, 1000. but when l found that the
committee studiously avoided me, treating me
with suspicion, so to speak, did not feel JUS
tilted in again approaching them. Mr. Fenton,
a broker of this CITY, called to sec me about the
loans and sent him to Mr.. Greenstreet, and,
when finally Mr.. Fenton's customer would not
take the loan, because of the township troubles
which had come up just at that time, I told Mr.
Fenton that he might offer the loan to Mr.
Greenstreet at per cent. and that I
would see that the loan was placed and
that he would get his commission.
But for the fact that tho committee were deter.
mined to avoid me- would have made this offer
direct and saved to them this commission /
could not do this because felt had no right to
approach them. was of the opinion, in the
beginning. that the board had better borrow all
the funds needed at one time. believe so yet.
l am justified in this opinion by the experience
of the board during 1884. Because we did not
at that time do this, we were obliged
afterward to pay II per cent. commission.
If the members remember have been the one
at every time to attack the finance committee on