The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-10-16

Tacoma, Oct. i5-SpeciaL-For several
weeks past there has been a great deal OF
agitation in the city council and on the
streets regarding the city's financial condi-
tion and the safety Of the public funds on
deposit In the various banks City Treas
urer McCauley and the financial committee
or the council have been holding almost
daily conferences with the banks holding
city money. This afternoon matters were
brought 10 head by the commencement Of
an action in the superior court by two
banks holding city funds against the city
to cancel the deposits.
The Plaintiff banks are the Columbia
National and the German American Safe
Deposit and Savings Bank. The city is
credited with a deposit of s1i2,2 21607 on the
books of the first, and SIS 70 in the sec
ond.
The action OF the two banks is the cul-
mination of all the wretched financiering
and Juggling in warrants done under the
Boggs regime, in which one. II not more
banks. were wrecked. the failure OF the
Bank Of Tacoma. with city deposit of
s22s,ooo, being still fresh in the public
mind
The suits Of the Columbia National ard
German-American Bank are brought in
court Of equity. The complaint recites that
between December Is. 1893. and April is,
1894. when Roggs' term. expired the latter.
as city treasurer. deposited with plant
IFS a large number Of instruments. pur-
porting 10 he outstanding unpaid warrants
OF sad city. drawn in favor of divers per-
sons and corporations upon the general
fund OF said city of the aggregate face
amount Of $40, $3.50 Continuing. the
complaint says the then City Treasurer
Boggs, for the purpose OF inducing
plaintiffs 10 give credit to him and 10 the
defendant city for the face amount OF said
warrants as and for a cash deposit stated
a tad ..fa tat .
rants were unpaid outstanding legal obli-
cations of said city. payable in the order
OF their issuance, as provided by law in
such eases.
That said statements were untrue in
this. that each and every one OF the sew
eral warrants aforesaid, prior 70 it's deposit
with plaintiffs. had been duly presented by
It's owner and holder to said George w
Boggs, as treasurer of said city, for ray
ment. at his office. and thereupcn paid by
said treasurer in full out Of the funds and
moneys belonging TO said city. and at the
time said warrants were deposited. ard
credit given, each of said warrants had
been fully paid and extinsuished. and was
no longer a legal or any obligation against
said city, but was utterly void and worth
less"
Finally. the plaintiff asks that its sc
count with the city and its treasurer he
opened and adjusted. and that il be per-
ceiling Of the credit Lehman, Houston &
Hammond appear for the banks
II viii be remembered that a few weeks
before Boggs went out Of Office in 1894
the Post-Intelligencer fully exposed the
dealings of the ex-city treasurer and the
unlawful character of his official acts
During the fall of 1893 and the winter of
lS93-a4 Bosgs is estimated to have paid
city funds for nearly IL not quite $3.50, Opo
of warrants. which were illegal because
they were issued when the city had gone
beyond it's limit of Indebtedness The
warrants were drawn on the general fund
In payment OF salaries. supplies and cur
rent expenses. Boggs indorsed them as
unpaid for want Of funds and some OF
the banks of the city. relying on the rem
resentations OF the treasurer and dnaDCe
committee that the warrants were good.
and believing that the people of the city.
in maintaining tho credit OF the town.
would see that they were paid. took them
as cash. and endeavored TO negotiate them
in the East. The supreme court has held
that when city warrants are bought with
public funds by the treasurer they ara
thereupon paid and extinguished; conse-
quently the city can never be made 10 re-
deem the warrants handled by BogcS.
Attorney t. W. Hammond said tonight
in regard to the suits: The two banks
named took tho warrants from Boggs.
who acted under the direction of the then
finance committee and with the advice OF
the then city attorney. Representations
were made that the city was In urgent
need OF funds to carry on its business and
that If the warrants were indorsed and
thrown on the local market they would
rapidly depreciate in value and the CITY
would be unable TO secure the services OF
competent men in the various depart
ruents or 10 purchase needed supplies
The hanks took the warrants in good
faith. believing IN the financial credit and
responsibility OF the city. As the war
rants are void. the banks will have 70
make good the amounts 10 their Eastern
customers. who bought them. The city
would refuse TO pay them when presented
as they are Illegal and the banks would
thus be compelled 10 pay those who
bought them and the city as well The
people Of Tacoma have never validated
those warrants. and until they do the
banks cannot be made TO pay the deposits
into the city treasury"
The situation - further complicated by
the fact that interest on the city hall and
funding bonds. amounting 20 Sfs.ssl. was
due today in New York. Arrangements
had been made by the Columbia National
hank TO meet the interest when the conn
post. amounting 10 over se7.o09 under the
instructions of the county commission
srs. This happened yesterday. and the
suits against the city were prepared and
the papers served today. The city author
sites have not Yet decided what course 70
pursue.