Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-05-10
EVERYONE PROTESTS INNOCENCE.
1t Is Claimed Impossible to Draw Interest
on Money That Is Deposited Sub
ject to Check.
TRUSTEES ARE CONSIDERED A MENACE


Morrow, and tomorrow morning the an
swer of the Finance Committee will be
placed on record. Its answer was held out
yesterday because all the members of the
committee were not present to sign il. All
the bills are in the main simple denials OF
all the statements set forth by Mr.. Howard,
in which he stated that over 81 600, 600 OF
the city's sinking fund was held in banks,
was not drawing interest, and, he further
claimed, that the money was being held
there for the benefit of certain politicians
aud bankers The plaintiffs bill was filed
during last October.
At the meeting of the Finance Commit.
tee Yesterday the answer of that body was
presented by City Attorney Moreland and
approved by the committee. Mr.. Heating
objected to some Of the answers because they
were not strong enough, but Mr.. Moreland
replied "that compels them to produce
proof"
The Controllers Answer Separate.
A silence followed this, until Mr.. More
land announced that the Controller would
file q separate answer
"why isn't it also submitted to us2'
asked Mr.. Ford.
Because it's none of our business" re-
piled Mr.. Heating. "The Controller is not
required to show us his answer. Why, this
is free country, even in spite of the de-
cisions Of the Supreme Court. to say nothing
of the findings of the License Court"
The committee then agreed that the Con-
troler could keep his answer from the CON-
mttee if he wished. The 10 members pres
ent then signed the bill.
The defendants in the reply Of the Finance
Committee are: Messrs. H. P. Ford, G. L.
Holiday, A. +. Heating, A c. Robertson,
J. II. Anderson, John Paul, r. j. Hazlett,
J. Mem. King, Andrew Bender, w. A.
Magee, John Dunn, j. j. Mcguire, Thos.
Delaney, William Angloch, r. d. Mac
Gonigle, Mark Donley and Thomas Wallace;
besides r. j. Hazlett, P. ]. Donahue, c.
w. Helmod, James Renziehausen. J. S.
Wightman and George A. Treusch, e1-
members OF the committee.
The answer admits all of the first seven
sections, which contain history Of w. j.
Howard the plaintiff; a complete record of
the membership of the Finance Committee
since 1888, together with a history of the
bonded debt of the city, the laws and ordi-
nances creating sinking fund, and also
detailed statement as to how said sinking
fund was invested.
Amount in the Sinking Fund.
According to present ordinances and laws
about $500, 600 year is being placed in the
sinking fund, and this amount will be
largely increased from time TO time. The
aggregate amount O. the sinking fund on
October /, 1890 was So. .093, ,497 80, of which
amount g, ,0O9, $40 1S has been invested in
interest-bearing securities and 81, ,0S3, ,621 y
is in cash and is now deposi ed in the Free
hold, Farmers Deposit National, Allie
gheny National and First National Banks.
Said deposits are not drawing interest.
The eighth paragraph OF the Howard bill
sets forth the necessity OF the appointment of
financially responsible trustee or trustees.
1t Iurther claims the defendants have re-
fused to apply the sinking fund to the pay
ment OF the city's bonded debt.
The answer AYERS that the CITY has no
authority to appoint such trustee or trustees,
and that the management and control of
said fund is in the control OF City Councils
Thev also deny they have refused to pledge
the sinking fund for the payment of the
funded debt.
Mr. Howard in the ninth paragraph held
that the sinking fund was controlled bv a
Finance Committee, the members of which
were not chosen with any regard to fitness or
qualification, and, in TACT, the committee
Mas molly irresponsible. Appended to this
was list of the biographies of the members
This section concluded with the statement
that the committee was irresponsible and
not superior to temptation. He claimed that
the committee, by resolution in 1858, PRO-
asaN, 4.s,1 C.z.-
vestments of the sinking fund without its
consent. The idea, he claimed, was to make
it impossible for the Controller TO buy
any bonds, thereby leaving large cash bal
auce In the hands of the defendant banks.
Every Item of 1t Denied
To this they reply with denial of any
and all charges that the defendants acted
from improper motives or were Influenced
by motives other than the welfare and pros
perity Of SAID city and the interest of the
taxpayers and bondholderS. They also
claim that the facts set forth do not bear
uut the allegations, W. A. Magee, A. c.
Robertson. II. p. Ford and G. L. Holiday
each individually denying that they tried
to increase the cash deposits in the interest
OF the banks
Paragraph 10 set forth that when the city
repositories were each compelled to nave a
capital stock of $500, 900, the Freehold Bank
was not city depository, but by a special
ordinance repeating all other ordinances
that bank was made eligible
They admit the statements in paragraph
10. Said action, however, was not taken for
the benefit and profit of said bank, but for
the city and its creditors.
The eleventh section claims that the Or
dinance was passed for the sole purposs of
making the Freehold Bank one of the de-
positories, and the answer Of the committee
simply says they do not know what motives
may have inspired Councils at that time.
Section u claims that from $500. 900 TO
$780, 600 of the city money is on deposit in
the Freehold Bank from April to August
each year. and about $3.50, 900 is there on
permanent deposit without interest. II
further claimed that said money was used
by c. L. Magee aud his associates in busi-
ness, and il further alleges thatSeveral men,
bers of the Finance Committee were directly
or indirectly connected with the Freehold
Bank.
The reply simply denies that their money
10 permanent deposit, and also that any
improper influence was exercised in the
selection Of the Freehold Bank.
Some More of the Allegations
In paragraph 13 it is alleged that John
Paul Of the Freehold Bank, and j. Mem.
King, OF the Allegheny National Bank, are
both interested in the management of the
Committee, and therefore criminally liable
under the law for using public money for
private gain.
In the answer both gentlemen simply
deny that they were guilty of any improper
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