The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-12-04
How the Rotten Bank of Taco
ma Got a Years Extension
ON CITY'S 1928 900 DEPOSIT
The Bank Put Certain Securities i'm
Treasurer McCauley's Hands,
But Was Permitted To Secretly With
draw some of the Collateral, Includ-
ing Notes of Cavender. Chairman of
Council Finance Commfttee-were
Councilmen Bribed.

Tacoma. Dec -specIal-Things are
coming rather hard for Councilman {. A
Cave7deF. OF the Second ward Today
Chairman Leo Roys OF the Iexow COM
nlitiee Of the Chamber Of Commerce. fled
charges against Dir. Cavender Nth the city7
clerk similar 10 those fled by the cons,it-
uents of Councilman Bu-ger. The docu-
Fnent hled today alleges tnat Mr.. Cayender
j. gully OF gross incompeteney and negleca
or duty and OF conduct unbecom-ng d men,
Der OF the city council
Tie new complaint against the repre-
sentative Of ,he Second ward goes fully
into matters connected with the Bank OF
Tacoma, IN which the city had SOS 900 when
u failed. Much that has already been pub
lshed regarding the financial committees
arrangements with President w B. Allen
whereby the bank was given a years time
20 pay W. Is included in Mr.. Rows charges
ms compact between the city and the
bank was made September /, 1874. and by
us terms the city was barred from COM
rnencing suit against the bank or taking
any steps TO close Il until the expiration
or a year. In consideration Of this agree
ment, the hank turned over to City Treas
hrer J. w. McCauley as trustee. SIS. .d9a
worth OF securities 10 be held as collateral
Tor the deposit. and executed a bond signed
nv me directors and stockholders OF the
bank Two weeks before the expiration OF
the year the bank assigned 10 f. < Alex
ander, which assignment vas subsequent
~ set aside and a. r. Titiow appointed re-
cstver
Mr.. Roys' complaint alleges, after recit-
Ing the above facts: THAT ". 3. Allen.
representing the Bank Of Tacoma. entered
into this agreement with the finance COM
mittee Of the city upon the distinct under
standing and further agreement that the
collateral which was 10 be turned over by
the bank to the city should be inspected
and its contents known only to Cavender
ana the city treasurer II was further un-
derstood and agreed that after the COLA
teral had been so Inspected by CaVender
and McCauley, that IL should be put in an
envelope. sealed up. placed in the vault of
the city and there remain intact until the
expiration OF the year. Cavender never
theless, contrary TO the distinct under
standing and agreement had between the
finance committee and the Rank OF Taco
ma In relation 70 the collateral permitted
sanctioned and aided the bank to secure
from the city treasurer a certain portion
of the collateral which had been deposited
with the city as aforesaid. amounting 10
many thousands of dollars, without any
consideration being given TO the city for
the REIMBURSEMENT of the collateral secur-
ity to the bank. that he also aided and
assigteTf tte ranK TT procuring certain 9TH
er of the collateral from the city treasurer
and substituting in lieu thereof entirely
new and different collateral from that
which was originally taken. that some Of
the collateral taken hy the bank was real
ICED upon by the bank and the money col
lected went TO the use and benefit of the
bank That among the collateral turned
over by the hank to the city was certain
collateral which the firm OF Cavender &
Fowler had given TO the bank as collateral
1.
ted. aided and assisted the hank In procur-
ing the Cavender & Fowler collateral from
the city treasurer and permitted said
hank 10 substitute other collateral In lieu
thereof; that +. Y. Benham, city comp
troller. frequently requested Cavender to
permit him 10 examine such collateral Sc
curitIes in the performance of his duty. in
order that he might have a clear under
standing Of the financial condition Of the
city, but that Cavender wholly failed. ne
elected and refused 10 allow the comp
troller or any other officer save the treas
urer OF the city to see the collateral or to
know the contents thereof.
There are many facts connected with
this agreement that are not stated in
ether the Roys complaint or that filed
Yesterday by n 9. Baker and other resi-
dents Of the Fifth ward. City Treasurer
J. W McCaulev had q hand i'm framing
the agreement. and when IL was Submitted
To the council Tor ratification IL bore Mr.
NIcCsuIev's name as one of those who fad
made the arrangement. as well as the
names Of the finance committee. Mr.. Nc
Cauley stated AT the time that Ffter the
finance committee had practically faded
p secure the SORT OF agreement il wanted
from the bank he took a hand TN the ne
c0.:ations. and they We're subsequently
closed on the lines above given AR Nc
CauIey Individually was made trustee for
tNa Aauk with the cffv and the CuVei0ne