The Barre daily times. (Barre, Vt.) 1897-1959, 1916-04-28
THREE BANKS GIVEN
THE SINKING FUND
AT APO INTEREST
City Council BY Vote Of to 3 Last
Night Made Disposal of Sum Now
Amounting to $4,000.

The sinking fund like all Gaul, wa
divided in three parts at special meet
ing of the city council last night, th
shears being applied by four-seventh
vote which authorizes the treasurer Il
distribute the money May as follows
Peoples National bank, $4,000; Granit'
Savings bank, $4,000; Quarry Savings
bank S22 1000. Each bank is to pay al
annual interest rate of 4.20 for periot
of three years, as against the 4.76 pei
cent offered by the Barre Savings Banl
a. Trust Co. for the entire fund. Not
without repetition of much of the aglta
tion that has marked proceedings center,
ing around the sinking fund in the past
month was the deal consummated anc
then in the face of rather determined
opposition from at least three members
OF the council.
Following Alderman Glysson's motion
of the night previous to require secur.
ity bond for any city money in excess OF
$4,000 on deposit, a conference was held
yesterday with the officials of the Barre
Savings bank. Representatives OF the
council were informed that the bank did
not consider it good policy to discrimi-
nate among its depositors by giving add
ed security for one deposit and with
holding the same added security from
another. The bank, however, was ready
to stand by its offer of April IL, it is
stated But the motion adopted at the
special session Wednesday night acted
as an estoppel on further negotiations
with the Barre Savings bank, and tend
ers were then received from three other
banks in the city.
A meeting of the finance committee
after the city meeting last night grew
into councillor session, in the course of
which the 420 bids from the three banks
were considered. 1t was on the motion
of Alderman Glysson, seconded by AL
derman Shurtleff, that the vote to divide
the fund was carried. On show OF
hands, Mayor Gordon, Alderman Glysson,
Alderman Shurtleff and Alderman Bruce
the motion Aldermen Healy,
Reynolds and Rossi voting in the mega
tive.
With Alderman Rossi as the spokes
man, Messrs Rossi Reynolds and Healy
took the stand that the city could de-
posit its fund with the bank offering 4.76
and in the face of that banks refusal to
furnish security for the balance in ex-
cess of 100000, the city could take care
Of the balance by furnishing bond of
its own. 1t was reasoned that the cost
Of the bond for the $4,000 representing
the excess would only reduce the rate
from 4.76 to 4.56. But the majority did
not see fit to favor the proposal and the
action, as recorded above, was finally |
taken.
The history of the sinking fund de-
posit in 1915 has been in the making
since the latter days Of March. Sup |
oosedly it was disposed of when the
'ouncil, on the night of April IL, voted to
,pen offers and to accept 4.76 tender if |
examination of the bids should disclose
such an offer. Two banks evaded the
question asked when bids were solicited,
me bank refused to take the fund at 4.T6
md the fourth letter contained an offer
II 4.76 for the entire fund. Dissatisfac-
ion with the action taken at the meet
ng preeipitated prolonged debates at
ubsequent meetings and it was not until
asst night that the council CROPPED its
way out of the misty atmosphere of
hetoric that had hedged about the sink
ne fund for a month and more.