The Birmingham age-herald., 1904-07-21
SQUABBLE OVER A
 $2OO,OOO DEPOSIT Alderman Wards Resolution 0rovokeS Lively Discussion GRAYS SU8STITUTEcARRIES Ward Proposed Money From Sale of School Bonds Be Divided Up and
 Offered for Deposit to
 Eight Banks.
GRAYS SU8STITUTEcARRIES

Aldermen squabbled at length last night over the place for the deposit of the s20O- GOO derived from the recent school bond sales.
 The money is now on deposit in the Peo- ples Savings bank, the official depository of the city of Birmingham. Alderman George B. Ward wanted all eight clearing house banks to come in for q share of the deposit and to pay interest on it. Alder man Henry B. Gray, chairman of the fn- ance committee, treasurer Of the board or education, and president of the People's bank, as well as other members of the board opposed the resolution They want ed the entire matter referred to the fln- ance committee for investigation. The Ward resolution was tabled and a substi- tute offered by Alderman Gray was adopted.
 Wards Resolution.
 The resolution offered by Alderman Ward was as follows:
 Be it herewith resolved by the mayor and aldermen That the use of the $2O0,- coo derived from the sale Of school bonds shall be offered to the clearing house banks of the city of Birmingham by the finance committee at a rate of not less than per cent per annum. Said money 10 se distributed in blocks of s25,0o0 on ap- plication, for each bank. It is further 1 provided that in case one or more blocks are not applied for, the finance cossssittee Is herewith directed to divide the r1main- der as equally as possible among the banks that do apply.
 Tt is further eirected that the funds so placed shall be In open account and sub 1 ject to check
 Grayr Substitute. The resolution offered by Alderman l Gray and adopted a substitute follows. Be 1t resolved by the mayor and al- dermen of Birmingham, That it is the sense of this board that the S200000 now on hand should draw interest and the l finance committee is directed to see the l best rate of interest that can be received and report the same to the poard." Alderman John c. Forney the Sew enth ward offered this resolution. but 1t was withdrawn before vote was taken. 1 Be it resolved by the mayor and al- l dermen of Birmingham, That the finance 1 committee be empowered and directed to keep on deposit the school funds of $20O,- 900 with the Peoples Savings Bank and | Trust company to draw 4 per cent inter- 1 est, said funds to be subject to current check, said interest to be calculated from Saturday, July 16"
 On the roll call for the Gray substitute l Aldermen Wheeler, Ward and Greener voted nay, and Aldermen D. R. Cope land. J. R. Copeland. Forney, Altman, Heidt Thach and Acting Mayor Stock
 
 Alderman Altman's Views.
 When the Ward resolution was frrt in- troduced Alderman Thacn moved that it be referred to the finance committee. This was seconded by Alderman Heidt as Alderman Gray came into the council chamber Just before the order was given for the clerk to proceed with the roll call Alderman Altman was recognized by the chair and he proceeded to discuss the pending resolution of MT. Wards | He thought that the city council should | investigate the matter further before any action was taken. 'Tn my opinion" de- | clared Alderman Altman, this resolution | should go to the finance committee for | report thereon at the next meeting, or at B special meeting if sucs is necessary. I | do not think that such a hard and fast resolution as the one offered should be 1 adopted just now without investga- | tion."
 In the meantime Alderman Thach had withdrawn his motion, but after Colonel Altman had taken his seat MT. Thach re- newed his motion.
 When MT. Gray took his seat City | Treasurer Engstfeld handed him the | Ward resolution. and the alderman from the Eighth ward read It. 'I would like to hear from Alderman Gray on this matter" said Alderman Ward.
 tS to :. Per Cent. l Alderman Gray: "I don't think that any l bank would be willing to pay per cent. on such a short time deposit. In my opinion this matter should be referred to the finance committee for a report"
 Alderman Wheeler: "I seconded Alder man Wards resolution because I think the tax payers should get the benefit of the interest on the money" Alderman Heidt: q am strongly op- posed to the adoption of the resolution to- night The finance committee Is com posed of conservative, business men and this matter should pass Into their hands for investigation" | Alderman Forney: ''In my opinion the matter should pass into the hands of the finance comxttee, and they should meet one day this week to take up the mat ter"
 Alderman Gray: q desire to say that the money will draw interest from the time it was deposited, the rate to be agreed upon by the city council" Alderman Ward: "In introducing the resolution, did not intend to reflect upon the members of the finance committee. In my opniion this is absolutely fair proposition and I think the finance com mlttee should meet tomorrow and take up the matter and get 4 per cent. inter est on the money"
 MT. Gray Remarks.
 Alderman Gray; "'rhe city of Birming- ham owes me over $20o0o0, and
 Alderman John R. Copeland And they are paying you per cent interest. too"
 Alderman Gray: Yes, sir the city is Of course it was q business proposition to lend the money to the city,
 Chairman Stockmar; "Gentemen of the board in my opinion Alderman Gray is right in the stand he has taken. As the president of the Peoples bank he has as- sisted the city many times in a financial way, and we should stand by him."
 The Gray substitute was then adopted and the Ward resolution was tabled.
 The Peoples Savings bank has been the official depository Of the city for about seven years. Mir. Gray has looked | after the financial affairs of the city ever since he has been on the finance com mittee. Alderman Ward is also a member of the finance committee.