The Donaldsonville chief. [volume] (Donaldsonville, La.) 1871-current, 1917-07-14
NEW COUNCIL IN SESSION.
Appointments Made to Fill Vacancies
in L. & w. Commission.

Donaldsonville, La, July 9, 1917.
a regular meeting of the commits
sion council was held this day at 7 80
p. M, with Commissioners E. K. Sims,
Alex ,Bloomenstiel and John H. Schatf
present.
The minutes of the regular meeting
of June II were read and approved.
Commissioner Schaff reported that
work is progressing very satisfactory
ly on the main drainage canal and al
so in the digging and cleaning out
of bitches throughout the city. He
said the grass cutting force had been
reduced to two men to do only such
grass cutting as is absolutely neces-
sary, as the ordinance requiring prop
erty owners to keep the grass down in
front of their premises would be
strictly enforced. Mr.. Schaff also re-
ported that he had granted permit
to D. Ohlmeyer to install larger gas
oline supply tank in front of his au-
tomobile supply and repair establish
ment in Railroad avenue, to replace
the small tank now in use there.
The attention of the council being
directed to the fact that number Of
buildings have recently been recover
ed with wooden shingles, the clerk was
directed to again publish Ordinance
No. 10, C. C. Series, prohibiting the
covering of buildings in the city with
wooden shingles; also the ordinance
regulating the erection of buildings in
the city limits, making it imperative
for prospective builders to first sub
NIT their plans to the commissioner OF
streets and obtain from him permit
to proceed with the contemplated
work.
4 communication was read from.
the Maginnis Land & Improvement
Co., stating that the store building in
Railroad avenue had been placed III
a safe and satisfactory condition.
The matter was referred to the com
missioner of streets.
a communication from the South
Louisiana Fair Association was read
Offering to settle an existing claim by
the wharf for freight charges,
amounting to $50, on basis OF o0
per cent cash. On motion, second
ed and carried, the offer was accepted,
and the clerk was directed TO notify
the association.
The following communication from
the liouidator of the Peoples Bank
was read:
Dona,dsonvilis, La. June %. 1917.
Mr. A. j. Melaneon. Auditor, City OF Don
allsonViiie. La.
Tn, fnrnis he
.he public through the DonaldsonHilte Chief
of .Irne IS. in which YOU review the achieve
meuts and handicaps of the commission form
of government for the city OF Donaldson n :
call your attention to a statement contained
therein, that may not be clear to the minds
of many reading the report.
Referring to the failures of the Bank OF
Donaldsonvile and the Peoples Bank you say
"A second fixture in 1914. that of the peo-
Piles Bank. imposed further loss IN TINS
fund of sS93.64," leaving the impress
sion. though unintentional on your part
that the city of Donaldsonville suffered
the loss of its funds through the second
bank failure. AS matter of fact the city
of Donaldsonvilie's several funds on deposit
with the bank were offset against an over.
draft due by the city of DonRldsonville and
there is today balance of s215.9G due the
Peoples Bank by the city. rs the books OF
the liquidation will show.
Kindly correct statement, ana thahdhs
you for your attention. am,
Yours very truly,
JAMES P. ARMITAGE,
Special Agent Peoples Bank in Liquidation
The position taken by the liquidatol
of the Peoples Bank is correct inso
far as the city is indebted to the sale
bank in the sum of S215.96. The
published report in question is alst
correct, for il he will refer to Exhibit
"B" embodied in said report, he vii
find listed in the liabilities as of 1917
under FLOATING Debt the, item Gen
eral Fund Overdraft, Peoples Bank
s215.96," which indicates that thu
city recognizes its Indebtedness to thu
Peoples Bank in said sum for the bal
ance of overdraft in its general funt
| left after off-setting the various credl
balances in it's bond fund, interes
coupon fund, and city collectors &C
count. By further referring to tn
portion Of the report at issue, it vii
be noticed the bond fund was unde
discussion, and the statement that
further loss of $893.64 in this fun
was imposed by the failure Of the Pee
ples Bank is absolutely correct, TO
this fund is created by means of
special property tax which the cit
cannot use for any other purpos
than to retire the bonds for which tn
| fund is raised, not even to satisfy i
self for the loss of its general fund
as in the instant case. While the OF
portunity is offered by the liquida'
| ing institution to set off these cred
balances against the general fun
oyerdraft, the fact remains that tn
city must make good from its gener'
revenues the loss occurring in I'll
bond fund, and present conditions ar
the city's financial position indica'
that this cannot be done now and ms
not be done for some time. In tt
meantime, the bond fund is involve
and the bonds cannot be retired
scheduled time. :,
Alfred Landry appeared before II
: council to request permission to u
: the batture lot in front of the city !
I. adjoining the power plant, for t
purpose Of planting potatoes. !
motion of Mr.. Bloomenstiel, second
bv Mr.. Schaff and carried, the pc
mission was granted to use the pc