Los Angeles daily herald., 1890-03-18

law, or the depositing of said moneys in
the City Bank under its contract with
said city as such depository OF public
moneys, would deprive the municipality
and its officers of the control of the pub
lie funds of the city vested in them by
law; (; or that it will confer upon the said
City Bank the power to handle, use and
control the public moneys of the City of
Los Angeles for it's own profits, to any
further or greater extent than, or in any
manner different from, the way in
which said public moneys of said city
are now handled, used and controlled,
for their own private profit, by various
banks of this city, hereinafter named, at
this time.
And answering further to the plaintiffs
complaint, the defendants say that the
same should not be heard and the prayer
thereof granted by court of equity, for
the reason:
That it is sham and an imposition
upon this court, and is utterly without
equity and good faith.
That the said public moneys of the said
City of Los Angeles have, at all times
since the present Treasurer, M. d. john
son, obtained possession of the same,
and during all the time that the
plaintiff has been surety on
said Tressurer's bond, been deposited in
various banks of this city, and said pub
lie moneys to the amount of 1854 ,555 SO
are now deposited with the said banks
in accounts as follows, to-wit:
With the California Bank of Los
with the Los Angeles National
Bank of Los Angeles. ......... $4,000 90
With the First National Bank of Los
with the Southern California Ma, 'o "
tional Bank of Los Angeles. 49,. 10000 90
With the East Side Bank of Los
Angeles. ........... ............. 1o,OOO W
VI.
That said moneys are by the said
banks placed with their ordinary de-
posits, and are held and used by said
banks, free of all interest, in the same
manner and to the same extent as ordi-
nary deposits of private parties, for the
private gain and profit of such banks,
and in violation of law, all of which is
known to this plaintiff.
VII.
That the plaintiff is a stakeholder of
the California Bank, above named as now
holding on deposit and using $35. 900 of
the said public moneys, and said bank
has at all times since the said Treasurer,
NJ. d. Johnson, has had the control of
said public moneys, held large sums of
| the same: the amount so held during
the month of February just passed be-
ing an average of about $72, 500, which
the said bank has used as ordinary de-
posits and paid out and loaned for it's
own private profit and gain, contrary to
the law of Article XI. section II of the
constitution and of the statutes of this
State, all of which is well known to the
plaintiff herein.
| That the said plaintiff, as a stock
holder in the said California Bank. is
now, and for long time pact, has been
receiving part of the profits 40 made by
said bank by the use of said deposits of
the public moneys of this city so held by
said bank.
That George n. Bonebrake and E. F.
Spence are the sureties on the plaintiffs
| bond for the restraining order in this &C.
| ton issued, and that the said Bonebrake
is president and large owner of the
stock of the Los Angeles National Bank,
which now holds on deposit and uses as
aforesaid, $50 900 of the public moneys
of said city, and the said Spence is the
president and large holder of the stock
of the First National Bank of the city of
Los Angeles, which bank now holds on
deposit and uses as aforesaid, the sum of
500 ,555 SO of said public moneys.
And the defendants say they are in
| formed and believe, and upon such in
formation and belief allege, that this &C.
ton is not brought in good faith by the
plaintiff for the purpose and tc accom-
plish the ends alleged in his complaint
herein, but that the same was instituted
to accomplish the designs of conspiracy
which has been entered into by and be-
tween the plaintiff and other sureties ON
the said Treasurer's bond and certain
stockholders and officers of said banks,
which are now holding and using the
public moneys of this city as aforesaid,
for the purpose of preventing the depos-
iting of the said public moneys with the
defendant, the City Bank, in accordance
with law, whereby the city would receive
an interest for the sum amounting to
from 1000 to $25, 900 per annum,
to the end that the aforesaid banks
may continue to retain and use the
same for their own private gain and
profit and free of all interest
| Wherefore, the defendants pray that
the restraining order may be vacated,
and for such other and proper relief as
to this court may appear just and
Equitable.
S. M. WHITE and
GRAFT, GIBBoN & CREIGHTON,
n Attorneys for the Defendant, the City
Bank.
. @. MCFARLAND,
Attorney for Fl. D. Johnson, City
Treasurer, and the City of Los Angeles,
Defendants.
Il STATE OF CALIFORNIA, -
County of Los Angeles, ss.
A. D. Childress, being duly sworn,
, upou oath, says: That he is presi.
dent of the City Bank, one of the
defendants in the above-entitled action
that he has heard read the foregoing an
swer, and knows the contents thereof
{ and that the same is true, except as to
= those matters which are therein stated
> on information and belief, and as to
them he believes it to be true.
Il A. d. CHILDREss,
President of City Bank.
STATE OF CALIFORNIA, 49,
County OF Los Angeles,} Ss'