The daily morning journal and courier., 1901-02-15
MIR. ELY'S BILL RETURNED
DyS4PPROVED BY BOARD OF
 FINANCE LAST NIGHT.

lending City Engineer Kelly in the
 investigation of Anthony CarroIrs | Charses-The BAH Was for $500-
 Opinion from the Corporation Counsel { on the Board of Education Bond Issue.
 At the meeting of the board of finance held last night the bill for $500 rendered by Attorney w. H. Ely for services in defending City Engineer Kelly came up for consideration and after considerable discussion the board voted to return the bill dlsapproved.
 The bill was tabled at the previous meeting and when it was taken up last night Mr. Curtis of the board at first spoke in favor of approving it. He said that he thought that the bill ought to be paid; that ridiculous charges were brought against MT. Kelly and MT. Kelly had been cleared in the conn., mittee's report and that for that reason the city should pay the bill. He said that in the past when city officials have been subjected to charges of this kind the city has paid the bills. He thought that the charges against MT. Kelly were without foundation.
 Mayor Driscoll opposed paying the bill. He said that the Big Four in vestigation few years ago was an en- tirely different affair and under the old charter. City officials in that case were being tried under impeachment to re- move them from office and could be re- moved on being found guilty. In the present case the court of common coun- cil could not remove MT. Kelly from off, flee. The mayor did not think that counsel for MT. Kelly was needed and intimated that in his opinion man not able to defend himself under those charges was not competent to be city engineer.
 The discussion then turned upon the question whether MT. Kelly had had any charter right to engage counsel and re- quire the city to pay the bill The members of the board were of the opin- ion that he ought to have consulted the corporation counsel. Finally Mr. Wheeler moved that the bill be return- ed disapproved and it was so voted unanim ouSly.
 By request of the park commission i It WaS NOt6u tO diiOW lildL SCiiiiAibpiOAA to submit it's minor bills in lump sllms It was voted to hold the next meeting of the board next Wednesday night since the next regular meeting night will be the eve of Washington's birth day, a holiday. The board will therefore meet Wednesday night to approve pay rolls so that the men employed by the city may receive their pay in time for the holiday.
 The opinion requested from the cor poration counsel concerning the board of eductaion bond issue was received last night and read and placed on file. The opinion follows:
 To the Honorable Board of Finance of
 the City of New Haven:
 Gentlemen: I am in receipt of the following communication from your board: "Voted, That the corporation counsel be requested to give his opinion as to whether the board of finance can legally designate a New York trust com- pany as the depository for the proceeds of the Funding and High school bonds, and whether, without such designation, the board of education can legally make such deposit? Also, is this fund to be considered as city money under the provisions of Section 29 of the char ter?"
 In reply to this communication, would say that Section 29 of the char ter gives the board of finance the right to designate such bank or banks as to them may seem best as the depository for all city funds. The section referred to does not limit them to banks in the city of New Haven or the state of Con- necticut. and I am of the opinion that they can designate bank in New York city, provided 1t Is consistent with the safety of the city funds.
 "The distinction between a bank, however, and trust company is well defined The powers of the trust com pany depend upon the terms of it's charter, of course, but they are not banking powers. The trust company, like the savings bank, pays interest ', upon deposits but it's deposits are strictly loans, not subject to checks. It may not issue its own notes for circu- lation, nor does it buy or sell exchange in the ordinary course of it's dealings. In directions that are not akin to bank ! ing. it's powers are much broader and extend outside the monetary realm into real estate transactions, trusteeships and the conduct of property interests Of all kinds The exercise by trust com : pany of some of the functions of bank does not make the company banking , institution nor lay it's officers liable to , prosecution for violating the banking laws" Mercantile Bank vs. New York, 121 U. s. Rep, 13S
 Banks & Banking, American & Eng, . Encyclopaedia of Law, Vol. 3. Therefore I am of the opinion that the term "bank or banks" as used in Section 29 of the charter, does not mean ] a trust company.
 In an opinion given to your honora- ble board December 3, 1900, I said that was of the opinion that the proceeds of the Funding and High school bonds, under the charter, under the general laws of the state of Connecticut and under the special act authorizing the , Tissue of the bonds, were under the con trol of the board of education of the city of New Haven. That Is, the ex- penditure, of this money Is not under the control of the city, but under the control of the board of education, and that expenditure can be only for the purposes specified by the act autnoriz- ] ing the issue of the bonds In the same . oninion. I said that the board of edu- - cation was separate corporation ex- , ! 1cnt where that separate corporate eX