Los Angeles daily herald., 1890-02-21
THE SCHOOL BONDS,
Mayor Hazard Refuses to AttaC
HIS Name to Them.

Mayor Hazard Refuses to Attach
HIS Name to Them.
Visitors to the city hall yesterday no
ticed standing in the corridor hand
some burglar proof safe, and as it ap-
peared as if headed for the City Treas
urer's office the question arose as to
what that official wanted with safe
when he had a steel vault with time
locks. After while it was rumored that
the safe had been sent to the Treasurer
by Mayor Hazard 80 that there could be
no excuse that the vault was not burglar
proof, for the refusal by the Treasurer to
keep the city money there, instead OF at
several banks about the city.
Mayor Hazard, when asked about the
safe, stated that he had ordered it sent
to the City Treasurer's Office for the
purpose of storing the money to
be derived by the sale of the
500 900 school bonds. He said that the
vault without the safe was not fit to store
the money, but with the safe, which
itlwould take forty hours to drill through
it would be better than any of the
banks in the city. He further stated
that the school bonds recently sold by
the Council to the Southern California
National Bank had been sent to him for
signature, and he was not particularly
desirous of placing another 500, 200
among the various banks. He had in
vestigated the matter of the city funds,
and had found that 100000 of the city
money was kept by number of banks
which paid no interest. The city had an
opportunity to loan all of it's money at
the rate of AZ per cent. interest to the
City Bank, but one of the stockholders
of q bank in which part of
the 100000 was deposited had
stepped in and enjoined the city from
obtaining an income from the interest,
and he did not propose that these banks
should get hold of any more of the
city money and thus obtain funds with
which to fight the city. For this reason
he sid he would refuse to sign the school
bonds until he knew that the money
derived from their sale was to 60 into the
city bank, where it would draw interest
at the rate of AZ per cent until used.
He said later in the day that he was
he was certain that the cash was to be
and that the bonds would not be
merely turned over to the Southern Cali
fornia Bank and a certificate of deposit
given in exchange, the bank thus hav-
ing the use of the money free until
needed by the city. He said that he had
talked the matter over with City Treas.
urer johnson, and had told him that it
was not right and that he would not sign
,he bonds until he knew the money was
% be kept in the vault at the city hall.
City Treasurer johnson did not have
much to say on the subject. He stated
hat he was afraid be and the Mayor
could not agree if the Mayor expected to
see the money in the safe be.
ore he signed the bonds. No
banking institution would transact bust
ness in that way; turn over the money
before the bonds we're signed.
1t was stated by several of the city Off
,ials that the Mayor had no choice in the
natter, and that under the law he was
orced to sign the bonds. Section 7, of
'he act, approved March 10Th last, says
The said bonds shall be signed by the
Executive of the municipality" was re.
ferred to as conclusive on the matter.
Mayor Hazard stated that the case
might be carried into the courts, but he
would not sign the bonds, except at the
end of the suit, or when he was certain
that the money would bs kept in the
vault or loaned out at interest.
The fight is becoming interesting and
is the all-absorbing topic in city hall
circles.