Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-10-15
CAUSING MUCH TALK.
City officials in Favor of an Impair
tial Investigation of the
CITY SINKING FUND QUESTION.
Select Councilman Lambie Says it Will Do
Good on All Sides.
THE CITY ATTORNEY TAKING TINE.

There was still considerable talk about
town yesterday regarding Mr.. Howard's
equity proceedings, which involved num-
Der of well-known people.
Select Councilman Johu s. Lambie vas
seen during the afternoon, and expressed
himself quite freely. He said he was glad
the question had been raised in its present
shape, and he heartily Endorsed the ideas
expressed in The DISPATCH, that nothing
should be placed in the way of a full, free
and impartial investigation.
cit will do good on all Sides" said Mr..
Lambie. "If the City Councils have been
pursuing a wrong course for years, it is time
that the error of their ways was pointed out.
1t will not only benefit them, but the people
at large. If they are right it will settle ques-
tions that have been banded about in one
form and another for years.
"What do you think of Mr. Howard's de-
sire to have the surplus of something over
81, 900, 900 placed where it will yield some
revenue in the shape of INTEREST,""
"Well, of course this is large sum Of
money to have idle, and have no doubt
some of it could be we'll invested, though
this is a question which can be answered
best by fnanciers. But, at all events, let
the investigation be carried out to the
fullest extent, as the people generally can
not fail to benefit by it,
WHY NO HARM CAN ENsUE
President Ford, of Select Council, said
the proceedings could do no harm, as the
actions of city officials or representatives
should always be open to the most careful
scrutiny. Speaking of the non-interest
bearing surplus of about S1,UO0,000, he
said he believed some of this money
revenue. but he did not know how much of it
could be used in this manner He said the city
should have considerable ready money on hand
all the time and as long as the people were
satlsneo tnat this money was secure, he did not
see how the present situation could be i'm
proved. That this money was secure, was
shown by the assertion of Controller Morrow,
who stated that every penny of the fund was
intact.
Mr.. Ford added that he believed the true
secret OF the suit was to be found in the pres
ent street railroad war between the Duquesne
and Pittsburg Traction Companies. He
thought he could detect the earmarks of spite
work all through the bill. One strong evidence
OF 1t was to be found in the sizing up of certain
the proceedings were brought in equity for the
reason that the plaintiff avoided anything in
the nature of libel suits after the matter had
been sprung upon the public
City Attorney Moreland was busily engaged
during the greater part of yesterday dissecting
the bill and preparing to outline an answer.
When seen. during the afternoon. he said: Il
answer will be. We have 80 days in which to
prepare reply, and as there Is no particular
hurry, 1 will take plenty Of time in which to
City Treasurer Denniston said it was mat
ter in which he was not directly interested,
though in common with many citizens, he had
a general interest. When asked what he
million dollars. he replied that it was quite a
lot OF money to remain idle.
SOME POSSIBLE INVESTMENTS.
81 am not prepared to say, however, he con.
tinued, "iust what disposal could be made of it
In order to make 1t tinrerest-bearing. 1t might
be invested In city bonds, that is if any can be
secured. l believe they are rather scarce,
though, and bring very high rate. The Con-
troller did succeed in placing quite large sum
of money in bonds that yielded about per
cent, but what the outlook is now is more than
can say. You will have to see him about
that"
There was no trouble in locating Mr.. Morrow,
but after he had been cornered he refused to
about the supply and demand OF city bonds at
present. As sort of compromise he referred
the reporter to bankers and brokers in a gen.
eral way.
A cali was accordingly made at the office of
Whitney d Stephenson, and the latter gentle
man submitted to a brief interview, He said
that bonds of the city of Pittsburg were only
to be had at rare intervals and in small guam
titles. This was owing to the fact that most of
them were held in Philadelphia and as fast as
they were taken up and reissues made the
Eastern capitalists gobbled them right up.
$50 far as am concerned
as a citizen and a taxpayer" said Mr.
Stephenson, II would prefer to have the money
remain right where 1t is without interest,
rather than return to the old methods of letting
it out at interest, subject to competition.
believe the city has lost enough already under
this system, and would not favor a return to
it, especially as the money at present is amply
secured."'
What are city bonds worth at the present
timer" was asked.
II cannot answer that question. They are so
scarce they are not quoted at all. 1 am salts
fed, however, that even if an effort should be
made to invest this money where it would yield
any interest, the Controller could not buy bonds
for the sinking fund that would net SO much as