Los Angeles herald., 1891-02-21
THE CITY LOSES.
NO INTEREST TO BE PAID FOR IT'S
MONEY.
The Usual Result in Los Angeles That
the Taxpayers Go into the Soup and
1t Is Boiling Hot.

Cne Dlduer OF Cne nlgneSt rate OF interest.
For more than year cabal controll-
ing the former city council kept the
money in certain banks which paid no
interest for its use. One year ago by
vigorous agitation bids were advertised
for and several were received, one from
the City bank offering Az per cent for
the use of the money. This was ac-
cepted, but the ring made fight and
for some months prevented the turning
OF the cash over, legal technicalities be-
ing exhausted before cent was let go
out of the hands of said ring. 1t was
in May OF last year that the city was
compelled to turn the money over to the
City bank, where it has been until this
week.
Immediately upon the transfer OF the
money out of the hands OF the cabal
that had its use for nothing, the deci-
sion of the superior court was appealed
| to the supreme court of the state. A
| few days ago, it will be remembered,
the papers published the decision of
this body, declaring that the loaning OF
the money out on interest is unlawful.
| This left the treasurer no option but to
bring to an end the programme by
which the funds were supposed to be
earning usufruct for the benefit of the
tax payers. He accordingly called at
the City bank and demanded the sur
render of the balance to the credit OF
the city. The bank at once complied
and day or two ago the cash was
| turned over to the city treasurer, who
proceeded to deposit it in the banks
of the city, each getting share
of the money. The amount on hand
was $193. .066.22. Mr.. johnson was not
slow in his action. All he knows about
the decision of the courts is what he saw
in the newspapers. No remitHtur has
yet been filed here, and the treasurer
knows nothing officially of the decision.
That, however. is not matter of great
moment. 1t will be conceded that the
decision has been handed down.
The City bank has had this money
since May of last year, between nine eand
ten months. The interest at AZ per
cent. calculated on daily balances would
come to $972l.54. The school funds are
short, and the schools will probably be
obliged to close before the proper time
this year, thus depriving the chill
dren Of part of their oppor-
tunity to acquire proper educa-
ton. ii this interest on the city money
could be paid over to the credit of the
school fund. it would keep the depart
ment in operation for a good part of a
month. But that could not by any pos
sibility happen in Los Angeles as at
present governed. That programme
would be in direct favor OF the people
and work for their general benefit,
rather than for that of some cabal. So
of course there is good reason why no
interest is to be paid. The bank fatty
refuses to pay over one cent of interest
for the money it has had the use of for
some months. The reason is that for
two months after the bid OF Az per cent.
was made, the bidding bank was kept
out OF the use of the money by the
tedious litigation instigated by the
ring. Then after the money was de-
livered up to the bank, an appeal was
| taken to the supreme court, and that
body has decided that the contract let
ting the money out on interest is Illegal
The bank does not say it did not use
the money, nor does it deny that it had
| the benefit OF its use. But the court
says the contract was illegal, and that is
good thing for the bank, but bad
thing for the people, When under ex-
listing circumstances something happens
that will be for the good of the people,
and not to their disadvantage. SO far as
the government of the city and county
goes, general holiday ought to be pro-
claimed, a re Deum sung and barbe-
cue INDUCED in, with fireworks in the
evening, at which few of those now in
power will attend, for that day will not
come while thew live