Los Angeles daily herald., 1890-03-11
THE COUNCIL.
The City Banks Bond and
Contract Approved.
A WATER FRANCHISE GRANTED.
President FrankenfleldR Replies to Mr.
Childress The Unemployed
WOrkingmen Ask Relief.

The City Council met yesterday morn
ing, President Frankenfeld in the
chair, and Messrs. Wirsching, Summer
land, Van Dusen, Hamilton, Brown,
Shafer, Bonsall and McLsin present.
Before the reading of the minutes,
President Frankenfeld resigned the
chair to Mr.. Hamilton, and, taking the
Hoor, said he desired to speak to ques-
tion of privilege. He then read the fol-
lowing:
CoUNcIL-I realize the fact that pubic officer
Is the servant of tho people, and th 1t all his of
hciai acts are open to criticism. You are well
aware have been severely crineisea 10. my
the City Bank for the sale keeping ana disburs
ing OF the city money, and having been 80
criticised. take this time and opportunity as a
l have heretofore said on this floor We are
about to enter into contractto loan the money
of this city, which amounts at times to half a
million dollars. to a corporation which Is ready
to borrow SAID money on call and pay Al per
cent. per annum interest therefor, to be hgared
on daily balances. We should only do so when
We have taken the greatest precauion to know
that it is a safe proposition and thesecurity un-
questioned. l am opposed to the approval of
the bond now before this body on the ground
ing. The amount of money in the treasury at
this time, including money received for school
bonds, is about 1878, 600. If said money is
loaned, the party borrowing 1t must loan and
keep one ha Il of it loaned at per cent per
annum in order to come out even. This we
must expect The city taxes are collected in,
and the the city has ON hand the elargessamounts
of money in November and December, and in
January, when the city is required to re- e-adver-
tise and reloan the money. the party having it
must be ready to pay the full amount. To bor-
n m N agk n
1t back, both in times when the city has the
most money on hand, makes it very apparent
that in order for the borrower not to lose
money by the transaction, it must, during the
summer months, when we have but little
money. Ian it very close, or must be able to
loan one half of it at nine per cent, commen,
the day 1t is called for by the city, which would
be very difficult thing to do.
Now, then, understanding what we must ex-
pect from any one offering to pay Az per cent
on the city money, let us consider the condition
of the City Bank and the security offered by it.
with the oficers Of the City Bank goes, / believe
them to be men of good reputation, financially
re- pOnsible and careful managers. The City
State and filed its ar icles Of incorporation last
July. in which the stockholders ana the amount
OF stock sgned tor Tor are given as follows; T.
John Park, $50 900; Thomas Lanigsn, $50,
600; p. Fitzwill1ams, 81 900; Poindexter Dunn,
$4,000; Z. G; Lunt, $1,000; T. e. Crandall,
".
At the close of business December 31st, 1889.
the statement of the condition of the City
Bank was published as follows:
1ss solTent 50 a stocR
and bonds, So, ,S56: vaults and fixtures, $11,-
419.26; expenses, $500 SO; cash on hand
$S9 $S9s 2s3os s34 q cash in bank $2s'2e1 total
liabilities s--Paid up capital, 800. 900: sur
plus, $4,000; undivided profits 81 1872 "a;
due depositore, $l09, 1872, total $215,314. 81.
Ia o.
Ohildress, A. D. Chfldress, ]. 3. Park, Poin-
dexter Bum, J. j. Schallert. E. e. Crandall
and R G. Lunt
The corporation and its condition show for
themselves. The $500 900 bond offered is as
follows: ". T. Childress, $50. 900; A. D: Chill
dress $4,000; J. =; Park, $25 900; .;J J; J; schal
lert, $25 600; Poindexter Dunn, $40, 600; Mrs.
Juana A Neal, 100000; F. H. Barclay, $2O,-
900; R. G. unit. $1,000; &. b. Young, $l5.-
oSS HGaR MsoPsy ecSs o a@ofs soD
$13 OOO s. Nc Ainley, $4,000; ]. h. Bryan,
$50, 900: J. E. Platter. $4,000; R. M Widney,
$4,000; R. S. Baker, $4,000; 8. W. Little,
While the city money might be loaned to the
City sank, handled by 1t and returned to the
city with interest, we have Fight and it is our
duty 10 make sure there is no chance for loss;
hence we ask for bond in the sum OF $500, 900.
You will notice that W. T: Childress. A. D.
Childress, J. s. Park ]. J. schallert and Poin-
dexter Dunn are directors and managers and
own nearly all of the stock of the City Bank,
They are in fact, the PRINCIPALS to the contract
for borrow ng the city money and are not eli
gible as bondsmen in that they add no strength
to the bond over that of the principal. We
would have our resource against them as pril-
cipals, and when that was exhausted SO much
of our bond, $110 600, would be worthless 1t
adds no sire 9Th for a man to endorse his owa
note. Take from this bond the parties who
have their property mortgaged, the revenues
from which will sc -rcely pay the interest, and
those against whom there are now judgments of
record, and you will reduce the bond an ad ddi-
honal tum OF 100000. You need only go to
for the proof of this tatement. Take froD this
bond the parties who have credit only fer their
ordinary business requirements and are of
limited means but who are on This bond for
of the bond in the sum of $4,000 lake from
this. bond parties who are, reported
gSSa which snd are would gsge to Ss
as being responsible for sums double the
amount tn y would be credited for by conserv.
atye eartss aed d we would reduce @ the amount
willing to take boDdsmen for greater amount
than they could get credit for in ordinary bust
ness ci cles. Take from this bond parties who
have good credit standing and who we will ad-
NIT are worth more than the amounts they sign
for but whose names do not appear on the
assessment roll OF this county and from whom
much OF a bond have we left? But small
amount compared to the " whole. Mr Childress
at meeting of the Council on February 26th
undertook to show that the City Treasurer g
bond was insufficient by claiming it is bond
of SO, 900, and then reads the names of some
of the signers for double the sum in which the
principal on such bond binds himself, and for
fear the several amounts would make much
larger sum, or for some other re asOn, leaves off
the names of number Of the bondsmen. In
his commupicat on he placed particular stress
on the matter of my not having complied with
the charter when passing upon the City Treas
ufer's bond and cited most prominently the
name Of Il. G. Wilmer and other of the Cali
fornia Bank, saying Mr.. Wilmer signs for $685.
900 and his name appears on the assessme mt
roll for $40, ,49O. Other sureties on the bond he
do with the approval of said bond; but to snow
that 1t is misleading, will say that If the reas
urer's bond is only $4,000, we have only to
look to Mr.. Wilmer as bondsman for $12, 500
OF that amount; and If the gentlen an
1888, the one under which the Treasurer's
bond was approved. he will find Mr.. winners
assessment to be over SEE, 900, and that the
Council which approved said bond did not neg
iect Lee its duty at that time, l herewith give in
which each bopdsman is holden C, Wit
mer, $12, 900; 7. ]. Weldon, $5 900; d. w.
Field, $2 500; Jesse Yarnell, $5 900; Geo Il.
Bonebrake. $12. 500; W G. Cochran, SIS, 900;
". q. Hsiieday, $500; M :, oDes. $500;
F. G. Howes $4,000; J. NJ. Elliott, $4,000;
9. N. Hunt, $500; E. P Bosbyshel, 1880;
J. G. Byram So, 500; G. e. Day, 81, 500; H. G.
Newh.il, Sc, 900; z. F Spence, $12500; so.
Bryson, ST.. 81 500; E. W. Jones, So, $50; Thos.
Meredith, So 300; VIM. Vickery, $5, 900; Her
vey Lnoley, $500; II. T. Newell $4,000; to-
The City Treasurer now has money on de-
posit with the following named banks: First
National Bank. $685. Los Angeles Nation al
Bank, $4,000; Southern California National
Bank, $50, 600; California Bank, SAL ,00O East
Sloe Bank, $l5. 900; and he has bonds for