Los Angeles daily herald., 1889-05-28

city can obtain interest on the same.
Instead of doing his duty as he is sworn
by law to do, he deliberately votes
against any measure looking to loan OF
the funds of the city as the law directs,
That is pretty grave charge, !!
think. Every member OF the Council
refused to put the city money In saw
ings bank because they didn't consider
| it safe to put half million dollars in
bank having only $4,000 capital. But
he impugns my motives and seems to
consider it criminal to be director OF
the California Bank and member OF
the Council al the same time. That is
the only time the question OF putting the
money out at interest has been before
the Council and there was only one
bid. 1t looks as if the statement
of the Mayor we're malicious, or else
made through Ignorance: In that he inn
plies that the California Bank is the
holder of all the funds of the city. This
| ia not 80. City Treasurer Johnson SUBJ
mits the following statement made at
the close of business on May 25th, which
| submit to show the falsity of the state
ment:
Deposited 6eS in First National Bank. sS'sIs.46
1 o.
| " '' California Bank .... 70,251.25
| East Side Bank. 25,0OOOO
"There are five banks holding the city
money, and the California Bank has less
than any excepting two. 1t seems that
the Mayor intended to imply that, as a
director in the California Bank, was
able to hold all the money in that bank,
whereas I have as little to do with it as
any of the rest of the Councilmen. ask
to have this statement placed on the
minutes. The Mayor goes on to state
startlingly that the interest will foot up
to $45 900 on money derived from the sale
of bonds, but everybody knows that the
bonds will not be sold all at once,
and only as the work proceeds.
The Mayor says in relation to the
appointment of Hervey Lindley on the
Police Board, that he did not want him
there. That is true. He did object at
first, but before we got through he said
he considered Hervey Lindley as his
candidate. The Mayor also said that
!. Water Overseer Dalton was appointed
, against his wishes. He asked us to re-
commend man, and we recommended
Dalton. The Mayor didn't like him, and
said he would consult the irrigators, who
| held meeting and Dalton was ap-
pointed. The Mayor then says
, "You will find on the payroll
of the Water Overseer, the names of
Shafer and Hamilton, 1t is direct in
| suit to those members of the Council.
! He don't say that they are not Council
, men. The RIGHTEOUSNESS of it. AS
though those gentlemen we're drawing
| double salaries. l made it my business
> to inquire of the members of the other
| ~, -. Ioxr h. l.
, with them. l said how do you get
sioner said, We'll, we get along. He
+ say and after ne gets through we go on
, and do our business A member of
: another commission said the same thing.
, That is all have to say on the subject. !"
Councilman Shafer said: 81 just want
to say one word. The Shafer on the pay
c roll is not myself. 1t is not my father,
my mother, my sister, my brother, my
aunt, my niece, my uncle, my nephe ",
and is not a cousin"
On motion the statement Of the CITY
Treasurer was ordered placed on the
! minutes.
! The City Attorney presented the fol-
lowing opinion
GENTLEMEN-You have referred to me the
, communication Of the Los Angeles Savings
Bank. which recites that. in response to your
advertisement for sealed proposals to receive
, and disburse the public money of the City,
they put in a sealed bid offering to pay per
cent upon de;S5 the money that thei, bid wa was the
money be turned over to them, as required by
the Charter There was also sent with the
said an eeTted copy h OF the
7 incorporation of said bank, l find that it was
! organized for the purpose of carrying on the
7 business of Saving and Loan Corporation"
agrees BILE to the laws of the State etc., etc The
laws OF this State in reference to saving aud
, loan CO porations, prescribes that no snch cor
, poration must loan money, except upon
adequate security on real or personal property,
and cannot loan for longer period than six
r years also find. from an inspection OF the
, bylaws, that deposits in said bank shall be of
two kinds, viz: Ordinary and term deposits.
, Ordinary deposits are those which are de-
, posted for no fixed period and required to be
hands OF incorporation, according to the pri
ority OF the demand for the payment thereof
Tenn Term deposits sa ia, are those which & are de-
3 months. The amounts of ordinary and
+ term deposits deposited and drawn out by each
book, and no payment will in any case be
made py the corporation unless the pass-book
3 is produced AND the amount: entered therein.
depositors notice as follows: "For sums less
than $100, ten days; for sums Of $500 and up
III,
, be required to sign an agreement in
and by which he shall contract and
agree that all moneys deposited by him
| with said corporation shall be reimbursed only
out of the first disposable funds that shall come
! into the hands of said corporation after the
date of his demand for the REIN bursement
thereof, etc. This corporation having agreed
to pay interest, it of course expects to loan the
! city's money in order to reimburse itself Ac-
cording to law. it can only loan upon real or
, personal property and its ability to repay its
depositors will of course depend, in measure.
upon its facility in calling in its loans. The
Charter provides that the money shall
be deposited in bank of deposit |
understand that exp ession to mean bank
conducting business in the ordinary way, and
which will repay its deposits upon call do
should be deposited subject to repayment as
provided in the bylaws of this corporation. 1t
would be wholly impractioable for the pass
book of the city to be taken with each variant.
and it would be inconvenient If the directors
should give notice to the city that they would
requite the notice required by their bylaws,
before money could be withdrawn. 1t is
allowing the directors to make special COZ tracts
with depositors. but 1 do not understand this
to mean that they can make any contact rect
ly prohibited by the by Flaws, which must have
been adopted by majority ef the stockholder
of all the subscribed stock. For thes- reasons
am of the opinion that the Council is justified
in rejecting said bid. The Charter Certainly
Icontemplates that the city should receive inter
est upon the city funds, and therefore advise
that steps be taken to again advertise for pro-
posals to receive and disburse the public
money!, and to pay interest upon the same.
Mr.. Hamilton moved that the report
4 L Il