Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1917-08-28

DUE ON CITY FUND
Mayor johnson Calls oa Long 70 Pre-
sent Claim Against DEPOSIT
tory Bank

AS an outgr0wtb Of tbe controversy
between Or. @. r. johnson, mayor of
East Moline, and J. F. Ryan alder
man. and one of the leaders in the
city council the mayor today ad-
dressed a letter to George =. Long,
city attorney. calling upon the city S
legal department 10 take measures 20
collect money claimed by the mayor
TO be due as back interest on city s
funds deposited with the State Savings
bauk.-0f which Mr. Ryan IS cashier
In mis- letter 10 the attorney the mayor
estimates that there is $3,938.8s due.
Claim Of the mayor is that money
paid to the treasurer personally be-
longed legally 80 the city, and that FOR
certain periods there was no payment
OF interest on city deposits.
Following is the mayors letter 70
the c5tv attorney, which was made pub
lie today by DR. Johnson.
East Moline, I'LL
Aug 27. 1917.
Hon. George p. Long, City Attorney,
East Moline. III
Dear Sir Mr.. j. +. Ryan. member
Of the city council and cashier OF the
state bank of East Moline. iB a state
ment published in the daily papers of
Aug. %. 1917. makes this statement.
That during the period from May ii,
1911. 10 april /. 1913. the bank PAID
fo the treasurer personally 8l,979-99
as interest. The records show that no
authority was ever given 10 the bank
ta pay personally 20 any one this sum
OF money. The ordinance plainly
states the salary of the city treasurer
shall be &25 per year 7 ms interest
was paid. so Mr.. Ryan says, TO the
treasurer personally. and I infer from
chat he means for his own personal
use
Now Z believe the officers of the
State bank were ON the bond OF the
treasurer at that time and all the city's
funds were deposited ia the State bank
and further claim that this amount
or all the interest paid on the money
deposited at that time belonged to tine
city and I further submit 20 E01 thaL
the rreasurer's reports show that from
February, 1913. to October. 1914, there
was no interest paid to the city at ALL
and from February, 1913, go May 2,
1915. the total amount of interest paid
on the deposits according 10 the clerk IS
records was s3696S. During the 27
months from February. 1913, 10 April
1915. there was. according to treas
urer's reports i'm the clerks office an
average monthly deposit OF S34,65b-t4.
You viii see by Mr.. REaus statement
that the banks are paying per cent
on deposits and computing the inter
est on the average monthly reports OF
the treasurer there should have been
paid to the city about S2,33I.5I, inst9a~q
OF $&Ge68 The present city ordinance
concerning city officers fixes the treas
urar's salary at $50 per month and d.
reefs that the city funds be depos-
tied equally between the active banks
OF East Moline and the interest be
paid into the c1ty's funds. It does not,
however. state the rate of interest the
funds shall draw. but MT. Ryan in
his statement says 3 per cent Just
how or why the City's money should
nor draw per cent, the same as the
rate paid other deposIt0rs, is not plain
TO me but / submit to you that this
money partly or all belongs TO the spe-
ciaI assessment fund and the bonds
outstanding for this fund are drawing
; per cent interest. so you can readily
see the people are paying the differ
Euce between 3 per cent as paid by
the banks and 5 per cent as paid by
the city. besides the loss of what in
terest is due on account of the amount
ure-. which is $4,000 and interest
due from Februarv, 1913 to april. 1915,
SI.86T SO These items alone Will
amount to &3.938S8.
Tt seems from the records that Ger
tain persons or institutions have been
best0wing beney0leuce upon them
selves at the expense Of the taEpay-
ers and il is little surprise that the
city was practically bankrupt inan-
cIaIly as far as funds on hand at the
beginning Of this year, I believe it is
time that this leak in the city's re
sources be stopped and I. as mayor Of
the city call upon you as city attorney
to take the proper steps to collect the
sums Of money due from persons and
their bondsmen, no matter who they
may be or how far back YOU can find
sums that are legally due the ra&pay-
ers OF this city.
Respectfully.