The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1908-01-19
Attorney General Answers
Several Questions Put to
Him by the State Trustees
Association.
FUNDS OF THE TOWNSHIPS
CHIEFLY CONSIDERED.
Banks of Many Townships
Have Refusued to Ask for
County Funds and There
fore Great inconvenience.

Indianapolis, Ind, Jan. 1S.-In an
opinion by James Bingham, Attorney
General, answer is given to a number
of questions on the pablic depository
law, which were proposed by the state
ization met here. Tne opinion was
prepared by Henry NJ Bowling, assis-
tant attorney general.
One question proposed related to
the deposit OF public funds of town
ships in cases in which no banks in
the township had applied for funds.
The question, as proposed by Fassett
A. Cotton, state superintenden of pub
lie instruction, for the trustee, sought
to determine whether or not in case
no bank in the township applies for
funds, it would be necessary for the
board of finance to create as deposi-
tories all banks outside the township
which made application.
The encouragement holds that the
law would compel the finance board
to create as repositories all banks
which apply for funds However. he
holds that it would not be necessary
for the township trustee TO deposit
money in all of these banks. The law,
he says, permits the board TO use dis
cretion in the depOsitiug of funds. The
| law explicitly states, the attorney-gen-
eraI says, that the deposits III the
various qualifying banks and trust
companies shall be maintained by de
posting officers as nearly in proper
ton to the maximum sums awarded
as is practicable. If it should be-
come practicable to deposit no money
in a certain depository or repositories
| the board would be justified in not do
! ing so. The encouragement says
| however, that if the award has been
made to one bank and others excluded
the order should be roscinded and all
| Of the banks created repositories. He
! does not believe, though, that it would
! be necessary to withdraw the money
! from the one convenient bank and par
eel it out among the others.
Has Right to Vote.
! Another question asked was wheth
| er d member of a township finance
| board who is also a StOckhOlder in :
! bank can vote with the board to allow
funds to his OWL bank. The attorney
general holds that this would not be
! legal, quoting from an act of 1905 III
! follows:
Any : person holding any
appointive power who shal
bargain for or receive any
profits or money whatever on any con
tract wherein an,
x IS township is con
cerned, on conviction shall be fined
etc"
The attorney-general holds tha
| while the language of the act does TO
apply specifically" a member of ;
finance board the spirit of the statute
he believes. includes such officials
Mr.. DOwling. in the opinion, sugge st
that the proper course would be 70
the banker to resign from the financ,
board. The opinion is ventured, how
ever, that the action of the maiorit,
of the finance board would be valid a
the state constitution provides tha
where authority is vested jointed il
three or more. the act of the majorit,
is the act of the body.
In connection with the first uuee
ton answered by Mr.. Bowling, in re
lation TO the deposit of township fund
it is stated that there are many town
ships in the state that will have grea
difficulty in finding places 10 deposi
their funds conveniently The bank
OF many townships have refused I,
ask for public funds. II is hinted tha
this action has been taken in the hop
that deposits would be made on whicI
it would not be necessary to pay inter
est. If this is the case, however, tn
banks will be fooled, because the iav
| prohibits such action.