The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-02-07
Mayor Davis Opposes City De.
pOsitOry Law.
Plan Is to Divide the Fund
Equally.
FIRST STEP is IPAKEN.
Ordinance Has Been Reconsider
ed by Council.
Is Now in Hands of Ways and
Means Committee.

The fact that Mayor W. H. Davis
has succeeded in stirring up opposi-
ton to the proposed depository ordi-
nance, which figures on dividing the
city's deposits as near as practicable
among the five city repositories, in
stead of leaving the amounts to the
discretion of the city treasurer is
causing some unfavOrable comment.
At the present time the city treas
urer uses his own discretion as to
how he apportions the city's funds
among the repositories. About a
month ago an ordinance was intro
duced compelling the repositories to
give bond in the sum of $4,000 each
to protect the city's deposits, and also
provided that as near as practicable
the funds should be equally appor-
toned. At the council meeting Mon
day evening a motion to reconsider
the vote by which the ordinance went
into effect carried. The ordinance is
now in the hands of the ways and
means committee for consideration.
The banks designated as city de-
positories are the Bank OF Topeka,
Central National, Capital National.
Merchants National, and the State
Savings bank. The management of
three of the above banks expressed
themselves in favor of an equal APP
poriOnment, while the remaining two
refused to give out any statement,
p. l. Bonebrake, president of the
Central National, said: Il think the
ordinance as proposed is fair. be-
lieve that the fair thing to do is to
make an equal distribution. However,
I want it understood that it does not
make a particle of difference to me
what is done There is not much
money in this city deposit business.
because you have to keep so large
reserve on hand, for you never know
when a demand may be made on you"
"All of US furnish surety bond for
an equal amount, said Edwin
Knowles. president of the Capital Ma
tional, land it only looks like fair
proposition to divide the funds equally
among them. All of the banks of the
city are in a solvent condition and
there is no faint against them of sus-
piciOn; if they were not solvent the
surety bond would be there to protect
them. In other cities the custom ar
rived at is to offer the city's deposits to
the bank bidding the highest to get
them and the successful bidder gets
alL of the deposits, but here where
there is no such system the only fair
thing to do. as it appears to me, is TO
make an equal apporuonment of the
funds"
DHlAENE EtAdL lIiEN 6liOuAu ACL TIC
ordinance go right straight through
without raising any dust said William
Macferren, cashier of the State Savings
bank. 1T is -not exactly wise TO make
fight on the ordinance, for it will
create talk. This bank is in favor OF
a square deal. and that is about as
much as we care to express ourselves
on the matter. I have this sugg estion
to make, however, and 1 believe that
it is a good one: That the bank which
re- 1ff 5nnnGifG should no ~
PEELED to purchase the equivalent in
the city's bonds and then deposit them
with the city treasurer as security for
the city deposits.
"The United States governm ent
makes its bonds the most desirable IN
vestment by compelling any bank
which gets deposits from the United
States to buy an equal amount of gov
eminent bonds as security for the de-
post This is one of the greatest rea-
sons why the government can issue
bonds at as low a rate as . per cent.
That is good inanciering. If the city
of Topeka were to ask the banks to
do the same thing they would furnish
more of a market at home for their
own bonds and the security for the de-
posts would be better than any securi-
ty or personal guaranty bond which
could be given. I think that more of
our bonds should be held at home. If
this policy were pursued the question
of the distribution of deposits might
easily right itself.
w. A L. Thorn pson, president of the
Merchants National, and A. W.
Knowles. vice president of the Bank
of topeka did not care to be qp9ted.
The city on its deposits gets 2 per
cent from the local banks The adver-
tisement which is given to bank by
reason of being city depository, the
increase in the amount of its deposits
and the interest which it can secure
on the money makes it fairly profit