Daily capital journal. (Salem, Oregon) 1903-1919, 1913-06-23
COUNTY TREASURER
HAS NOT NAMED THE
BANKS OF DEPOSIT
Disputes as to When the Law
Goes Into Effect Holds
Up Naming Them.
THE ATTORNEYS DISAGREE.
Legislature Playing Politics With the
Governor Caused Unforeseen Legal
Muddle.

When the legislature last winter com
tinued its session for five days for the
purpose of keeping the whip hand on
the governor and trying TO overcome
the provision of the law giving him
the power to veto its measures, it op-
ened the gates for several kinds Of
trouble. One Of these now bobs up to
annoy and cause worry.
Among other laws passed was one
providing for making the banks
throughout the county repositories Of
the county funds. 1t provided that any
bank in the county might file securities
with the county treasurer, and that he
should submit these securities 70 the
district attorney and that if the latter
found the securities all right that on
the first Monday in June the county
treasurer should name the banks as
county depositors, Now, owing TO the
little game of politics played by the
Legislature, as we have mentioned, tho
law which would have gone into effect
about May 2s, did not become a law
until June third. 1t so happened that
the first Monday in June fell on the
second, and as the law did not 60 into
effect until the third, or one day after
the treasurer was required to make his
selection Of the county repositories,
dispute has arisen as to when the treas
urer shall make his selection Of depOsi-
tories as the law requires.
The matters was submitted to the
district attorney by the county treasur-
er, he being the lega advisor of the
treasurer under the law. The district
attorney holds that the law does not
go into effect until 1914. Acting on
this advice the treasurer has not named
any repositories. 1t is stated that all
the others counties have acted in the
matter holding that the law was in
force, and so the repositories have
been named. Heretofore the United
States National and the Capital Ma
tiOnal banks, Of this city, have been
the bondsmen for the county treasurer
and he has made these banks his de-
positories,
To this the banks in the county out.
side OF Salem object, claiming the law
is in effect now, and that the treasurer
should name them as repositories.
Backing their position they have the
opinion of the attorney.general to the
effect that the time is not an element
Of the law, and that IL is simply di-
reetory That IL Is the duty Of the
county treasurer as soon as possible af
ter the law went into effect to name
such banks as had complied with the
law as repositories.
Several at least of the county banks
have filed their securities as the law
requires. The treasurer has not sub.
mitted these to the district attorney,
as he holds the law does not 20 into
effect until 1914. Until he does this
and the district attorney acts thereon,
no settlement Of tho matter is possible.
The Salem banks now used as de-
positorios say they are perfectly willing
ing TO put up bonds whenever called
upon, or IL the law is declared in force
now, but point out that they cannot do
this so long as the district attorney,
who has to pass upon the legality and
sufficiency Of the bonds, holds that tho
law does not 20 into effect until 1914.
It is probable q suit will be started
to settle the matter, and II is also quite
probable that the law will be held to
be in force, and that the county treas.
urer must name the banks that have
complied with the law as repositories.
The surety and bonding companies are
taking a hand naturally, as they get
tho principal benefit Of the law That
il will be Of material benefit TO the
smaller banks, however, is no doubt,
true,