The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1911-04-18
GARY SAVES
MONEY IN
new DEAL.

II the banks of Gary. are soaking"
the city by an extra overcharge of
one and one-haIf per cent interest they
will be less disposed to do 1t in the
future. for Cincinnati bank will now
have the privilege of holding the city's
securities at four and one-half per
cent interest instead of six per cent. as
has been charged.
Debt Set Back Ten Years.
Following lively fight in the coun-
ell last night the Provident Savings
Bank and Trust company was awarded
a four and one-half per cent $4,000
bond issue, the proceeds Of which will
be used to take UP outstanding city
warrants now bearing interest at six
per cent The bonds are of ten years
duration and Will be in denominations
of $500 each.
In other words. the city is indebted
to the extent of $4,000. as is evidenc-
ed by warrants drawing 5000 a month
interest. The debt is showed into a
time ten years from now and each year
a tax equal to $4,000 plus the bond in
terest will be levied and the proceeds
will be set aside in special fund to
take UP the bonds when they mature.
May Slice Rate.
Heretofore the banks of Gary have
announced that they would not handle
the warrants unless they were paid six
per cent interest. The trust" as some
aldermen view it, is now smashed and
| the city will only have to pay four
and one-haf per cent, or possibly less
| in the future, as there was a DISPOSE
ton to slice down the rate to four and
| one-fourth per cent SO as to keep the
outside bank from coming IN.
| Alderman Bowser precipitated the
battle royal of the evening when he
introduced an ordinance providing for
the issue of the bonds and stipuiating
that they should be sold to the Gin
cinnati bank at par plus INTEREST,"
| At this juncture Ex-Judge Cassius
M. Greenlee who was in the spectators
gallery arose and asked that his client
whose name he would not divulge could
offer better terms
VIII save City Money.
Then Norton Stutson the representa-
tive Of the Ohio bank got up and made
a speech to the effect that the Gary
banks long had the opportunity to cut
down their rates and now they should
have no complaint since an outsider
had come in and showed the city how
$500 interest could be saved on Tho
present indebtedness.
i I'VE showed the way" concluded Mr.
IStutson," and we should have these
bonds. 1 believe that virtue should bs
rewarded"
"Othervvfse They Are Stealing It,"
Now. Mr.. Mayor" responded Alder.
Imam Castleman. these Gary banks
Thought that they were doing us q
lgreat favor in handling them at ST,
Iper cent and here it can be done at {
lcent and half less. They are getting
this extra cent and naff"
otherwise they are stealing it," In
lterposed Mayor Knots. when the
mayor suggested that the banks wer'
lstealing that much interest from thu
lefty several bankers In the audience
were seen to grit their teeth
Il Following many hot debates ant
Host efforts to send the bond proposition
Ito committee the ordinance was Anal
lily carried and as the case now stands
the Provident bank can have the bonds
Question ~ to Legality.
However, there is considerable doub
upon the legality of the bonds as thu
lordinance was passed by a majority in
lstead of a two-thirds vote. But. Mr.
IStutson said that he had good legal ad
Twice from Indianapolis lawyers to tn,
leffect that the 1911 acts permitted bon
tissues by majority instead of tw'
thirds vote but most of the lawyer
present were inclined to think that tn
tissue is illegal
Following the adjournment of tn
lcouncil representatives of bond house
including the Fletcher National bank n
; Indianapolis gathered around Mayo
; Knots desk for pow-wow.
Knots Explains Stand.
81 don't care who knows it," declar
ed the mayor, 81 brought Mr.. Stutsol
here myself and had him do this so a
: to lower the interest rates.
The plea of the evening had bee
that the business should not go out o
!. the city but this did not go with Nj
Knots. who by the way Is vice presi
dent of the Gary Trust and Saving
bank. Alderman FEEDER, Gibson. Walls
and Rowley wanted the bond issue sen
/, to a committee hands. Messrs Feue
and Gibson are directors in Gary bank
, while Rowley and Walsh have stock i
, local banks. Whether the other f1v
alderman have local bank alliances il
the shape of stock is not known.
.