The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1900-10-23

Tradesmens bank Mr.. Fresenius
thought that they We're. Mr. Curtis
then said that the city paid per cent
interest on these notes and that $4,000
of the proceeds lay in the Tradesmens
bank for several weeks and the city re-
ceived no interest on the deposit, He
said that the board of finance author
lied those notes because the city con-
troller had stated that the money was
needed for current expenses.
Mr.. Mersick was then questioned. He
said that when he was city treasurer
he was familiar with the charter re-
quirement that a depository should be
named by the board of finance. He said
that his bank did not offer to pay in
terest until May 1899, when the finance
board designated the Merchants bank
as bank of deposit after the bank had
offered to pay per cent. He said that
was few days before his term of Office
as city treasurer expired. He said that
it was a benefit to the Merchants bank
to receive deposits without paying in
terest. He said, however, that the city
never lost cent because of receiving
no interest from the Merchants bank,
since the finance board had at that time
designated no bank Of deposit.
City Controller Rowe said that in his
opinion the cases of Mr.. Mersck and
Mr.. Fresenius were parallel. AS MI.
Mersick said, the finance board in his
term of office had not ordered bank OF
deposit Neither had the board desig-
mated to Mr. Fresenius a bank OF de
post, nor officially notified him that
there was such a bank. Mr.. Rowe SAID
that if the board of finance had deslg-
mated bank of deposit while MIR. Mef-
sick was in Office the city would nave
saved $4,000. He asked Mr.. Mersick II
this was not true and Mr.. Mersick re
piled that it was.
Mr.. Dewell read copy of letter
sent by Mr.. Mersick to the board OF
finance May TO- 1898, calling attention
to section 80 of the charter and saying
that his bank was willing to pay per
cent. interest after May Is, 1899 In
reply to questions from Mr.. DeWell, Mr..
Mersick said that he knew of that sec
ton of the charter when it was passed.
MI Dewell--"Was money worth more
in May, 1892
Mr. Dewell--'I ask why it was worth
more to you them"
Mr. Mersick-"That [ decline TO an
swer."
Alderman Wright of the finance board
objected to Mr.. Dewell asking the ques-
ton.
Mr.. Atwood of the board said that If
this point was to be brought up it would
come up at next Monday
nights meeting.
Mr.. Rowe-"Mr. Mersick, were you
asked before May 10, 1899, If your pahk
would pay 2 per cent. q
Mr. Mersick-"I decline to answer for
special reasons"
Mr.. Foote asked If the designation by
the board of finance of a city deposit
ory relieved the city treasurer from la
bility under his bond. He was inform
ed by the members of the board that
it did not. Mr.. Foote said that the
bulk of the city deposits had been
placed in the Tradesmens bank. He
said that there was no disposition to
keep interest money due the city, but
that the bank had not been called upon
to pay interest to the city.
Just before adjournment of the SEES
sion Mr. Fresenius said that he under
stood that the finance board had been
discussing for some months the matter
of interest on city deposits. Mr.. Cur |
tbs said that he brought the matter to |
the attention of the board about six |
months ago. Mayor Driscoll said that |
he did not remember the matter having |
been brought UP during his admins |
tration.
Mr. Fresenius said that if the matter |
had been brought up before he would |
have been glad to explain.
The board adjourned until next Mon
day night when the members of the |
Old board of finance will be summoned |
in to be heard In the investigation.