The Topeka state journal., 1916-10-26
FOUR BANKS OBJECT
Throw Obstacles in Way City Receiv-
ing Three Per Cent.


banks asked for consultation behind
closed doors this morning with
Finance Commissioner w. H. Wasson,
in an endeavor to induce him to use
his influence in killing a proposed or
dinance which would make it possible
for the city to obtain per cent on it's
money deposited in Topeka banks in
stead of per cent. the amount now
paid by the Topeka banks.
The bankers present at the city hall
this morning were: Joseph T. Gray,
auditor Topeka State bank; J. r. Bur-
row, president Central National bank;
William Macferran, president state
Savings bank and F. P. Gilmore, cash
ier Shawnee State bank
The conference lasted for more than
two hours. A few minutes before noon,
Commissioner Wasson appeared in the
council chamber and informed the
commissioners, who had been waiting,
| that he was ready to proceed with the
meeting which had been delayed by
the conference.
MY viewpoint on the proposition
has not changed one iota," declared
Mr.. Wasson, following the conference.
I LAS finance commissioner l am sup
posed to get the best investment pos
sible for the city and with the passage
of this ordinance the city will get an
increase of l per cent on its moneys.
Wasson Stands Pat.
81 am for the passage of the ordi-
nance the same as l was three hours
ago. No public official could be 9TH
erwise, who is looking out for the best
interests of the city he represents
But to give the bank representatives
every opportunity to show why the city
should not get per cent instead of
per cent and present any argument
/ Sirn -inv, NA..c
son withheld the final reading of the
ordinance until next Monday. This
was done at the request of representa-
tives of the four banks.
| The Topeka banks and trust COM
panies have been accepting city
moneys on deposit and paying 2 per
cent for the use of the moneys state
FUNDS and certain city and other funds
deposited in a similar manner have
been drawing. 3 per cent in Topeka
banks. The ordinance governing the
! deposit of city moneys provided for
equitable distribution as far as prac-
| tlcable, provided that no money
should be deposited which drew less
than per cent interest
| New Bank Takes a Hand.
Then the new Kansas Reserve State
oank with F. c. kaths as president
ana Earl Akers as cashier, sprang into
existence That bank offers TO take
the city moneys and pay per cent
on the deposits.
| The four bankers endeavored to
| preserve the old ordinance Under its
provisions, only one-twelfth of the
city s money could be placed in the
new bank, which offers per cent: the
other banks could continue to pay >
per cent and let the city and the one
bank whistle.
The city charter provides that the
city funds shall be deposited in lone
or more banks of the city" The pro-
posed ordinance means to follow the
charter, and instead of the stipulation
in the ordinance now requiring the
city to deposit it's funds in the various
| banks of the city, las nearly eQuitably
as possible to ST bstitute a clause
permitting the city to deposit its
guided by the best interests of the
city,
The new ordinance, in line with the
old, will stipulate that a bank receiv-
ing city deposits shall protect the city
either thru the bank depositors' guar
antee fund, or a fund of indemnity of
a surety company authorized by the
insurance commission of Kansas and
approved by the commissioners, and
to the amount of the city funds car
ried by the bank
The bankers in their arguments to
keep the city moneys on deposit at 2
per cent declared that they are heavy
! taxpayers, old citizens and should be
| enIllleQ TO cOnSlQeTatlOn- 1t is un-
| derStood that Commissioner Wasson
! has told them that they are entitled
to consideration and would get it on
strict business principles.
Commissioner Wasson refused to
discuss the proceedings at the confer
ence- When asked If such arguments
had not been presented. he laughed.
Draws a Comparison.
They're bankers" said Mr.. Was
| son. II venture to say that if two
men came into their bank with equal
securities at their command and asked
for a loan. one offering s per cent and
the other per cent, they would ac-
cept the per cert loan first, no mat
ter if the man was a taxpayer old res
ident. or not. The same thing should
apply to city business. We desire to
get the most we can for our money
| and we have an opportunity to do SO
and get the best of security at the
| same time. Why shouldn't we do it %