The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-06-18
TAKES A HAND, TOO
ASSEMBLY THINKS TT TIME TT DID
A LITTLE INVESTIGATING
ITSELF.
HORST AND THE ALLEMANNlA.
COMMITTEE APPOINTED TO IN
QUIRE INTO THE BIG DEPOSIT
IN THAT BANK.
HORST AND THE ALLEMANNlA.
MARKHAM WRITES ON BANKING.
Submits Contract Between the
City and Treasurer Horst Which
He Wants Approved.

to a lengthy communication from Cor
poration Attorney Markham as to the
funds of the city deposited in suspend
ed banks. In connection with the let
ter from the corporation attorney, a
resolution was presented together with
an agreement entered into between the
city and the sureties on the bond given
by City Treasurer Horst. The agree
ment allowed the city to appear in
proceedings against the insolvent banks
and the bOndsmen without prejudice to
any rights it might have to recover
from the treasurer and those liable
with him on his official bond. 1t was
signed by c. L. Horst, j. w. Lusk,
James H. Weed, Maurice Auerbach,
Albert Spangenberg, William Porten,
William Hamm, Moses S. Clapp, F.
r. Well, Joseph Haag. Peter NJ. Kerst
and Thomas B. Scott, who are sureties
on City Treasurer HOrst's bond in the
sum Of $500, 600. The resolution provided
that the council the mayor, city clerk
and comptroller execute and approve
the agreement. Mr.. ArOEin was in favor
of the matter being referred to the
committee on ways and means.
Mr.. Markham thought it would bt.
unnecessary to have it referred to the
committee. He wanted the contract
approved by the council as soon as
possible.
Mr.. ArOsin thought it was an impor-
tant matter and should be considered
by a committee. A special meeting
could be called and the contract ap-
proved after it had been duly con-
ci Ac no ~
reading, one Of the parties Of the first
part had not signed the contract. Mr..
ReardOn was of the opinion that there
was no particular rush, and seconded
the motion of Mr.. AroSin that the mat
ter go to the committee on ways and
means.
Mr.. Albrecht wanted the agreement
read but Mr.. Arosin objected to any
more publicity until all the persons
interested had signed the contract or
agreement. On the roll call to have the
matter referred to the committee, there
were six votes for and two against
-MesSrS. Albrecht and MabOn voting
against the reference.
The letter of the corporation attOr-
ney was as follows:
In the matter of funds deposited by the
city treasurer i'll certain banks of the city
which have become ins0lvent, some serious
complications are presented. In the fall OF
1898 resolution was adopted by the common
council designating these same banks as de-
pCs1torles of city funds and requiring that
IN each c2se proper bond should be given
and approved by the common council. The
bank OF Minnesota, Germania, AIemannia
west Side and certain other banks of the
cry, IN compliance with this resolution ex-
ecuted bonds to the city conditioned for the
payment upon the order Of the treasurer OF
any sums which might be deposited from time
10 time, pursuant to such resolutions. Again
IN November, 1895, pursuant TO advertisem en-
anu proposals received, the common council
passed a resolution designating these same
bahks as repositories of the city's funds and
pfoNlGlng that before any money should he
deposited in any such designated banks. mr.
Suant to said resolutions. each of said banks
should execute and deliver a bond To thn citv
with good and sufficient sureties in thg
amount named conditioned for the rayment
TO the City upon the order of the treasure,
VI Such sums as might be deposited in said
banks. Subsequent TO the passage of this
resolution, the treasurer continued 10 de-
post the funds of the city and each of the
banks above named and at the time Of
-, SUSPENSION each of these banks had Oh
deposlt considerable amount of CITY funds
NO DonQ was given by the Allemannia hank
or by the Bank of Minnesota subsenuen+ r.
ne passage of the resolution of November
1850. ana the bond given by the Cermania
bank subsequent to that resolution was not
approved by the common council until afta,
Ciie suspension of the bank in January 1892
Under these circumstances the cuaStior
ARISES as TO how far the sureties on bonds
given IN 1875 in these various banks are Iiahle
1or moneys deposited by the treasurer and the
questlon is also presented as to whether tha
treasurer by continuing to derosit tbo f,,nde
OF the city in banks which either cave NJ
ponds at all or the bonds of which had moi
Deeh approved by the council subsequent r.
ne ne lesoiaClon OF November. 1896, is not with
the Suretles uron his official bond liable r.
the city for the sum so deposited II will
really be seen that it might be imnrudeni
ana unsafe for the city to take the posifior
IS
full amount Of funds deposited NV rho So
treasurer therein. lest by taking such nosi,
tion the city might be said to admit the
iight OF me treasurer to deposit the funds OF
liie CITY III these banks. and lest such action
uDon ITS part might be he'd to be a ratifcafion
OF MS acts in making such DEPOSITS rpndino
Che execution and approval of the bonds re-
qtnreh bv the resolution of Nnvemhpr 1903
10 oDVlate, as far as possible tha difn
cultleS arising from these combinations 7
nave Undertaken to negotiate subject TO tba
approval or the common council an agree
Iilent with the treasurer and the sureties i,non
his official bond to the effect that tba cit,,
NAV appear in these insolvency Droceedino orc
and file proof of claim for the full amount of
10y Iulius on deposit in these various banks,
ana may institute such suits upon the bonds
gwen by such banks. or take such other nosi-
ton in regard to these funds and the recov-
cry thereof as this department may advise
WITHOUT prejudice to any right It may have IN
recover these funds from the city treasurer
bond. ~ ms 'iiNi
l have the honor to transmit herewith tbe
agreement arrived at fer your consideration
and approval It has been signed nv ali nj
those who are liable on the CITY treasurer'S
bond, with the exception of NJ. P. Ryan, who
IS absent from the city. but who is expected
home early next week. | have assurances
that the agreement will be satisfactory to
him, and will be executed by him. If the
council approves of this agreement and If is
signed by Mr.. Ryan upon his return, then ii
will take effect upon it's execution by the
proper officers Of the city
1t will be observed that the agreement does
not impose any duty upon the city to take
| any proceedings upon any bond given by any
! of these banks. and does not in any way i'm
! pair or postpone the right of the city to
/ bring action at once upon the treasurer's
! bond, if such course should seem advisable
| None of the rights of the CITY will be in any
! way impaired by the approval and execution
OF TINS contract, but. on the contrary, thins
that by It's approval and execution this de.
! partment will be relieved to a great extent
! from the ex sting embarrassments in connec.
! ton with these bank matters. and will he
! able to bring them to more speedy deter
| mination.
| The assembly, if the board of alder
! men concur, will Investigate the actor
| of the city treasurer in the matter OF
| the depesitng of city funds In the
! Allemannia bank The resolutions pre-.
serted by Mr.. Arosin read as follows
Whereas, 1t appears from the statement OIL
! the city treasurer on dailv balances in banks
that the amount of $3.50 479 II was on deposit
! in the Allemannia bank to the credit of the
! city Of st. Paul at the time said bank failed
| and.
! Whereas. the common council of the city o.
| ST. Paul in November. 1896, designated GER
! tain banks as repositories of the city and
| one of such banks was the Allemannia bank
! and
Whereas. the common council of the city O.
ST. Paul expressly resolved that no money
should be deposited in any of such banks un.
til a bond had been furnished to the city o.
| st. Paul and had been properly approved BY
| the city of ST. Paul; now therefore, be it
Resolved, the board of aldermen concur