The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-02-20
City Treasurer Horst's Break in DepositiDq
MoDey in the MinDesoto Sav-
iDgs Bank.
Low LIMITS the Amount
to the Assessed Stock.
In Tbs Case Capital Stock Was Assessed at
$4,000 and AmouDt Deposited
$4,000.

The question has been raised as to
by the Minnesota Savings bank to
protect the city for funds deposited in
the institution can be held The point
made is that the deposit of $4,000 made
by the city is in direct violation of the
charter, and under the law the city
treasurer becomes liable for the amount
in the bank over $4,000.
The law found on page % of the mu-
nicipal code, chapter 3, section 6, reads
as follows:
All money received by the city treasurer of
the city Of st. Paul by virtue of his Office
as such treasurer shall be deposited in one
or more designated national banks, state
banks or private bank or banks, in the name
OF the city OF st. Paul Such bank or banks
or bankers shall be designated by the COM
mon council of the city of st. Paul, after
advertising In one or more daily newspapers
published in the city Of st. Paul for at least
ten days for proposals, and receiving pro
posals, stating what security shall be given
TO said city OF st. Paul for said funds so de-
posted and what interest would be paid on
the monthly balances Of the amount so de-
posted upon condition that said funds, with
accrued interest, shuld be held subject to
draft and payment at all times on demand.
Provided that the amount de-
posted I'm any bank or banking
house shall not exceed the assessed
capital stock of said banks or bank
ing house as shall appear ON the
duplicate tax list.
Before any national, state or private bank
or banker shall be designated as such de-
posftory, such bank or bankers shall deDosit
with such treasurer a bond payable to said
city of st. Paul, and signed by not less than
hve freeholders of the city of st. Paul as
" hnT1d cho1 ho
the city of st. Paul, and shall be in such
amount as said city shall direct which
amount shall be at least double the amount
of funds to be deposited with said bank or
bankers.
In the case of the Minnesota Savings
bank all the requirements, with one
exception, were complied. with. An Of
fcial advertisement was published set
ting forth the portion of the charter
quoted above and with the clause rel
ative to the amount to be deposited
rot to exceed the assessed capital stock
of the bank included in the advertise
ment. On Oct. 13 the Minnesota Saw
iDgs bank filed a bond with the city
clerk in the sum Of $4,000, with Her
man L. Schade, George J. MitSch, Law
renee J. Casserly, Charles E. Chapel,
L. D. Barnard, Frederick c. Stevens
The bond was approved by the council
on Dec. g. and few days later $4,000
of the city funds was placed in the
bank.
The assessed capital stock of the
Minnesota Savings bank, according
to the returns of the assessor, was
$2,5OO.
If the finance official of the city,
the city treasurer, had followed the law,
not more than 800 of the city funds
would or cOuld have heNn denoSited in
the bank 1t is claimed. however. that
Horst felt under obligations to w. F.
Bickel for helping elect him and there
fore made this deposit and took
chances on nobody finding it out
Comptroller McCardy. it is claimed,
should have prevented Horst from vio-
lating this section of the charter. The