Omaha daily bee., 1902-04-05
AFFAIRS At SOUTH OMAHA
Statutes Nay Delay New City Trsasursfs
Taking Office.
DEPOSITORY MUST FIRST Be CHOSEN
rnH Then Hfs Bond Cannot he APP
proved. but the Banks Decline
TO Bid on Daily Bal
ancea.

while every cent Of the money due the
city is on deposit in the three national
banks Of South Omaha. there Is liable TO
be some delay about the transfer OF the
funds Treasurer Kogteky will be ready
Tuesday forenoon TO turn over the money
and the Once 70 his successor. 80 right
here the question Of a bond comes %.
The charter under which the city is
working now provides that the city treas
urer shall furnish a bond In a surety com
pany in the sun OF $4,000. II also pro-
vides that the city council shall designate
q bank as the depository Of the city funds
and requires this bank 10 furnish q GER
tain amount Of bond. Under the old char
ter the treasurer furnished a personal bond
and as the council declined to carry out
the edict OF the legislature in the matter
Of designating a city depository. the per-
Eonai bond OF Koutsky. which was fur
nished when he entered upon his duties.
vas considered all right. When the city
asked for bids for balances on daily de-
posits. az was demanded BY the charter.
the banks refused to comply and the re-
suit was that the surety companies in
which Treasurer Koutsky had arranged for
his bond declined to proceed with the
bond until the city had complied with the
Law. For over two years the banks have
not paid the city interest on daily ball
Rnces, and they therefore refused 10 bid
for the city money. II was the same in
the matter OF the banks giving bonds.
Each bank is a national bank and between
the three there is over 5000. 900 on de-
post at the present time. hence the re-
i~uctanee 10 give a bond 20 a city with a
deb Of more than it can carry. Another
reason for not paying daily balance in
terest lie that az soon as money is covered
int the city or school treasury 1t IL
checked out to take up outstanding war
ranta- One day there might be a few
thousand dollars in the strong box. and the
next IL would all Re drawn out. so that
The banks declined some years ago to be
further bothered with interest on daily bal
Rnces.
"A the legislature passed the act and IL
has been a Law for over a year. IT is now
q question as 70 what the incoming city
treasurer will DO. II the council does its
duty it will have to approve the bond OF
the new treasurer before he can take
charge OF the once. and yet he cannot
give a surety bond until the city desig-
mates q depository. II a personal bond is
accepted il will be in direct violation OF
the Law. Local bankers say that with the
present condition Of the city's finances and
the money market they will not make bids
on daily balances.
KOutsky's Appointments.
SO many reports we're current yesterday
regarding the appointments OF elect
Koutsky that he was called upon 10 either
Rfirm or deny. One vas that he had ten
dsred the appointment Of chief Of police
20 John c. Troutan. engineer at the post
once. Other equally ridiculous reports
were ahoat- When called to his attention
by a Bee representative Mr.. Koutsky said
that so far he had made no promises. and
That he would proceed to select good. ca
pAble men for all Of the positions to Be
Filled. Il shall be in no hurry" said Nj.
Koutsky. "to rake appofntuents. a. want