The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-05-28

cost. but I stated that lid not alter
the case because it WAS IN violation OF
the law and then it did not look good
to purchase from a company in which
al of council held stock, and was not
fair to other people in the business.
and the entire council, including MIR.
Booth, agreed it should not be done
in the future, as Mr.. Booth renarked
in his letter, people in glass houses
should not throw stones SO l 90
not think after brought this zip mole
than five years ago that I would have
tried to influence the clerk TO favor
The Peoples Bank, CT which I was
president and held stock. with the
city's deposits.
AS matter Of fact. do not think
the Peoples Bank has been favored
by any Of the clerks l understand
from Mr.. Brunson, and l only ascer-
tanned this fact within the last 80
days. that the Peoples Bank had been
used by him as checking account.
and that if he had 100000 deposit
ed in all of the banks and wanted 20
draw the 100000, he would send
out a check on the Peoples Bank for
the 100000 and draw a check on
each Of the other banks and deposit
them in the Peoples Bank, and by
this method all the deposits that went
through the other banks would like
wise go through the Peoples Bank,
and this is how it is shown that the
Peoples Bank had this large deposit
referred to by Mr.. Booth. AS a mat
ter of fact. in October, the time MI
Booth refers to. the city had an over
draft at the Peoples Bank Of something
ever $4,000. Mr. Booth seems to be
quite interested as to the deposits go
ing into the various banks While at
the same time he claims to be inter-
ested in the interest OF the taxpayers.
Sometime around August the city
sold to the various banks some or lts
bonds. and the city made an agree
ment with the banks that while they
held the bonds they would be exempt
ed from taxes Mr.. Booths bank
purchased some of these bonds but
disposed Of them before the taxes be-
came due, and the other banks did
likewise Having done so, they were
not entitled to have them exempted
from taxes, or to have the amount
paid for the bonds exempted from
taxes, but after the ,onds were sold
and before the taxes became due, l
took it up with city council and sug-
gested it would be nothing but far to
allow the banks PER cent for the
money which they had paid for the
bonds, or rather, the difference be-
tween and per cent, as the bonds
had drawn a rate of 6 per cent inter
est To this council agreed. Suose-
quently "a committee representing
some of the banks End the cashier
representing Mr.. Booths bank came
before city council insisting that the
banks should be exempted from taxes
to the extent Of the bonds they had
purchased. I took the position that
the banks ought t. be satisfied with
s per cent, as that was all they could
have loaned the money for had they
not purchased the bonds for the banks.
and having sold the bonds prior to the
time taxes were due we're not enotled
to the exemption and especially as the
city had not had the money more than
4 months However, a majority or
council thought otherwise. and this
resulted in Mr. Booths bank getting
interest at rate of approximately
13 per cent for the moEe3- which It
had paid for the bonds. Does this look
like protecting the interest OF the tax
PAYERS or the interest Of the bank?
The Peoples Bank declined this ex-
emption and only accepted interest
at per cent.
Mr.. Booth further states that
Messrs Raffield and McCallum su9-
gested at the last council meeting
change ir the city deposits. This mat
ter was not mentioned at the last
council meeting until brought up the
matter of the unequal disposition OF
the sinking fund and then there was
something said by Mr.. Raffield about
having heard that the Peoples Bank
was being favored with the city de-
posts; and the clerk explained he
had been using the Peoples Bank as
checking account and that the city
had not been N suhclenr
funds at any time for the
deposits to be worth anything
at any bank. and the Peoples Bank
had not been favored. My recollec-
ton is this was all that was said about
the matter, and Mr.. Booth says this
was an injustice to tae other banks.
If the banks had been - just to the
city as the city has been ~ the banks
in the last II months then council
would not have had SO much trouble
in raising funds with which to COM
plcte the electric light plant.
After all of the bonds had been sold
by the banks which they had
purchased and the city did not owe
the banks a single dollar the clerk
was sent to each bank TO request them
to loan the city s5.00o. as it was in
need of funds. and / told the clerk to
inform the other banks if the other
banks would lend tht city $4,000 each
the Peoples Bank would do likewise.
The clerk returned stating each Of the
banks said they had no funds to lend
the city. That is the kind Of justice
the city got, but I was fortunate
enough in making arrangements in
New York to get all the money the
u