Los Angeles daily herald., 1889-09-13
Depository of the City Moneys.


Depository of the City Moneys.
There seems to be great deal of back
ing and filling on the part of the City
Council about carrying out the plain
mandate of the Charter ordering the
deposit of the city funds in the bank
making the highest bid. After advertis-
ing for bidders, it was found that the
Farmers and Merchants Bank had made
the highest bid, three per cent. The
matter was then referred to the Finance
Committee to report, and it is now under
stood that all sorts Of bubbles have
been raised to prevent the carry.
ing out of the conditions of the
bid. One objection raised is that the
bondsmen of the Treasurer will with
draw from his bond if the moneys are
taken out OF his custody. Suppose they
do, what has that to do with the case?
Fhe Charter plainly says that the Treas.
urer's bondsmen shall be relieved from
responsibility for all moneys after they
have been duly deposited by him in the
bank selected according to law as the de.
pository. The provisions of the Charter
covering this subject are very plain,
and can only be distorted or obscured by
determined intention not to comply
with them. Here is what that instru-
ment provides:
1t shall be the duty of the City Clerk,
upon the first Tuesday of January in
each year, or as soon thereafter as practi-
cable, to cause notice to be given, by pub
lie advertisement for one week in some
daily newspaper published in the city of
Los Angeles, that sealed proposals will
be received from any bank of deposit in
the city OF Los Angeles, as to the terms
atid conditions upon which they Will re-
| ceive and disburse the public moneys Of
| said city, such proposals shall be re.
ceived up to the time to be specified in
the notice. The proposals to be made
shall specify the rate of interest per
month estimated upon the daily bal.
ances, that will be allowed upon such
deposits of public moneys. Such
sealed proposals shall be publicly
opened by the Clerk, in the presence
of the Council, at its first meeting after
the expiration of the time for receiving
proposals. The bank Offering the high
est rate of interest shall be appointed the
! depository of public moneys. The Coun-
Gil shall thereupon cause contract in
writing to be drawn, and providing for
the proper payments of all warrants
drawn upon the City Treasurer, 80 long
as there is sufficient money in the fund
| upon which such warrant is drawn, and
sufficient money to the credit of said
city on deposit in said bank to pay the
same; and providing also for the full &C.
counting of all moneys go deposited, and
the repayment of the balance on deposit
at the end of the term for which
said contract shall be made, to the
| City Treasurer, or other person author
lied by the Council to demand and re.
ceive the same. The Council shall have
the power to require such other pro
visions to be inserted in such contract as
it shall deem best for the interest of said
city. The contract, when approved by
the Council, shall be signed, in behalf Of
the city, as hereinafter provided by Sec
ton POI of this Charter. Such deposit
tory, thus selected, shall give bond,
| with two or more sureties, in the sum OF
one hundred thousand dollars, or such
further sum as the Council may require,
conditioned for the faithful keeping and
proper disbursement of all such moneys
said bond to be approved by the Mayor
aud Council. Upon approval of snch
bond, and the signing of such
contract, the Council shall direct
the City Treasurer to deposit each
day, when such bank is open for trans
action of business, with the bank thus
selected all public moneys of said city
by him collected or received. For each
such deposit the Treasurer shall take the
receipt of the bank, and from and after
the deposit Of such money in said bank
the Treasurer and his bondem en-
shall no longer be liable therefor. Should
the City Treasurer refuse or neglect at
any time to comply with the orders of
the Council, ~ to the deposit of such
moneys, he shall be liable upon his
official bond, in an action brought tiere-
on, by and in the name of said corpora
ton, for the full amount Of the interest
which the corporation should have re-
ceived upon such moneys during such
time as he shall retain the possession or
control Of such moneys; or he may be
proceeded against by said corporation, in
against him under the laws of this State,
applicable thereto, to compel such depos-
its to be made.
There is nothing dubious or equivocal
about that. The Council have recognized
their power to let out the deposits by
having advertised for bids, and those
who claim that they failed to do so on
the first Tuesday in January, answer the
objection when they show that the
present charter nor the Council elected
under it did not exist at that time. But
the difficulty is obviated by the