Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-10-14

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property of said city. and any breach of the pro.
visions of this section shall be misdemeanor,
a fine not not exceeding ST. OOO and imprisonment
not exceeding year, either at the discretion
| Of the Court trying the same"
Allegations of Personal Interest.
| And your orator AYERS that the SAID John Paul
| is u stockholder and director in the Freehold
| Bank, and the said J. McM. King is a stockhoider
| and director in the Allegheny National Bank, and
| both members of said Finance Committee.
| AGING a members of Council and of the Finance
| committee in the selection of said Freehold Bank
| and the Allegheny National Bank rs repositories
the funds of said city. they are both personally
and as members and officers of said banks, inter-
| agement by said bank. of said property OF said
CITY, contrary to said statute, and SO your orator
which the Councils of said city pretend to manage
the said trust in respect to said sinking fund, is
! unlawful and criminal in character.
FourteenIh-And your orator further AYERS that
| the cashier of said Freehold Bank is John F.
| the Duquesne Traction Company Of which said
| company the said {. l.. MaRee is President. and
said company is now engaged in the construction
expenditure of a very large sum Of money That
the law under which said Freehold Bank is incor-
porated for the purpose of saving the cashier
thereof from temptation has provided that 1t
shall not be lawful for the cashier ofany bank to en-
gage in any other profession occupation or calling
either directly indirectly. than that OF the
duties appertaining to the office Of cashier and If
any cashier of the bank shall, directly or indi-
recty, engage in the purchase or sale OF stocks or
in any other profession, occupation or calling
other than that of the duties OF cashier such cash
ier upon conviction thereof in any court of GRIM
inal Jurisdiction, shall be sentenced 10 pay fine
the occupation of said Steele as treasurer OF the
Duquesne Traction Company, does not properly
of the said Freehold Bank, and that said cashier
is such
Treasurer in Defiance of the Law
governing said bank And so your orator AYERS
that the said bank, thus having cashier subject
ing himself to the temptation against which the
law attempts to guard him by highly penal pro-
Fifteenth That the said cash belonging to
has been and is. received. held and used
SSy,d by them hem g seggerSIly AS as any deposits are
usual conduct Of busness II is deposteS tes
In said banks In the name Of the city, together
sion of said banks, is in no way manner SET
apart distinguished or guarded other than any
other deposits in said bank, and not separated
ject at any time to the check of the authorized
officials of said city. and is used by said banks
other deposits in the discOuntinR of commercial
paper for and otherwise making loans to carry on
the business and sustain the speculatons of their
Of said banks may see 1T to reauire from such c9s
toners, and from such use of said fund. said
banks derive large profits and gains, but neither
the city of Pittsburg, the bondholders VINO are
the equitable owners of said funds, receive or
get the beneft OF any interest or accumulation
Fifteenth and e-half-Your orator AYERS that
proved May % 1874. above set forth it is express
ly made the duty of the city to provide for the
said sinking funds to the purchase of outstanding
bonds and SO toward the extin cuishment and cam
the security of the holders of said bonds and di
minish the onerous burden upon your orator and
all other taxpayers OF said city, and even if no
OF honesty would prompt such course of action.
The Act of Assembly of 1883.
And your orator further shows that by the act
of Assembly, approved Juns 13, 1888 entitled can
act directing the investment of IN oneys emaining
to the credit of the several sinking funds of cities
of the second class in loans of said cities of the
United States or of the State of Pennsylvania and
repealng all laws Inconsistent Herewith, - z. L.
page 100, it is commanded that the Council of said
city, defendant provide by ordinance for the in
ances remaining to the credit of the several sink
ing funds of said city. in the loans of said city or
Pennsylvania, and the income derived from such
Investment shall. on collection, be credited to the
several sinking funds respectively.
And your orator shows unto your Honors that
the Councils Of said city have refused to provide
by ordinance for the investment by the City Con-
but as herein5efore exhibited have undertaken
to place the control of such investment under the
power and subject to the will of Ae aforesaid
Finance Committee. and by such agency have
failed. neglected and refused to apply permit
to be applied the moneys SC. collected for said
funded debt of said CITY, or of any other
securities. and have refused to, permit
balances remaining to the credit of the several
sinking funds of said city as directed by the
have accumulated to the amount of 81, ,0S3 62l r.
as hereinbefore set forth. and is accumulating at
an average rate Of $685. 759 Ga annually, and that
said cash balances so rapidly accumulating in |
stead OF being used required by law and by the
the bonds of said city and to the relief Of the
taxpayers of the same. Is required by the action
OF said Finance Committee and is actually held |
for the use. benefit and advantage of the afore- |
said banks, and the individual owners and |
officials thereof
Claims of Wrongs by the Orator.
Sxteenth-So your Orator shows to your Honors |
that the said city, defendant is acting In viola
tion of law in failing refusing to raise I'D and
appoint suitable and proper trustee or agency
for the custody. and: to have the care and man. |
agement of the trust imposed upon said sinking /
funds by the Constitution and laws, and in refuse
the bonds of the city or other securities; whereby
said funds might be safely and securely kept, and
Of said city are imperiied By such chhD"Fer Ter
and suitable trustee or agency for the safe and |
proper management Of said funds. and by such
fund in interest bearing bonds Of said city, or
other reliable securities as required by law. and
the action of the defendants composing the
Finance Committee aforesaid in prohibiting the
the purchases for sUe5 sG conS be
IN ade at price the said defendants knew, and as
as shown, cannot ordinarily be OBJ
tanned.
Wherefore your orator needs equitable relief,
and pravs,
First-That it be adjudged, ordered and decresd
that the moneys collected and to oe collected by |
said city, and the investments made thereof for
said sinking funds are trust fund, to be held in
trust and invioaby pledged for the benefit of the
holders OF the bonds OF said city, and for the pay
Second-That 1ourHonors, for the safe and prop
er management of said trust, name and appoint |
10 receive, take and have the care and manage |
ment of said moneys, and all investments hereto
fore made Herewith, from time to time as the
same may be collected for the purposes by law de-
clared, upon such terms and conditions as to |
your Honors may seem proper for the faithful |
execution of said trust and to promote the
security ana proper care of said moneys.
Third-Or. thatYour Honors order or decree that
the SAID city, deiendant by its Controller shall
forthwith invest the cash balances remaining to
hereafter to be collected for the same from time
TO time, as the same are received by said city in
The interest-bearing bonds of said city, or other
good and reliable securities, as by law provided.
Prayer for Further Decree.
Fourth-And that our Honors will further de-
;ree that the cash balances remaining, belonging
% said funds, now in the POSSESSION of. the de-
endant banks to the credit of said city, be at
,nce in the hands Of said banks set apart ana dis
ingushed from all other moneys of said city, or
IF other persons on deposit in said banks, and |
hat the said moneys shah not be used by said
banks for the purpose of discountIng commercial
patrons of said banks, and that for the proper
Keeping and care of the same, each of said banks
De forthwith required to file with the City Con-