The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1922-07-19
COUNCIL LAST EVENING AUTHo-
RlZEO CITY MANAGER TO
DEPOSIT MONEY TO BE
RECEIVED.
Wheelina Bank G. Trust TO Get $4,000
for Deposit at Five and One
Quarter Percent.

BY A vote Of seven TO four. CRY
council last night authorized tho city
manager to deposit the money re-
ceived from the sale OF the two mil
lion dollars worth o. filtration bonds
with the various city banks at three
percent. in proportion to the amount
OF their capital stock after all money
allowed under a contract be deposited
with the Wheeling Bank & Tfust
company at FIVE and one-Quarter per
cent.
Councilmen Metzner. McCorkay
McGregor and Williams voted against
the motion. Those voting in favor OF
the motion were Councilmen Nester.
Gilligan, kress. Ulrich, Cunningham,
Schenk and Mayor Thoner.
Council Not Satisfied.
A week ago council opened bids
from Is local banks for the deposit OF
the city's money TO be derived from
the sale of the S2.000.0O0 bonds. All
banks offered three percent except the
Wheeling Savings & Loan association.
which offered five percent, and the
Community. Savings &Loan company,
which offered four percent. Council
met Monday night with the advisory
committee, and it was then that City
Solicitor Carl o. Schmidt read tele-
gram from the state bank examiner In
which he ruled that the Wheeling Saw
ings & Loan company and the Com.
munity Savings Bank could not be
considered as banks in the deposit OF
the city's money. This eliminated
these two banks.
Council then adjourned to meet be-
fore the regular session last night and
in the meantime requested the banks
to determine whether they could pay
@ higher interest IL the money was
placed on time deposit OF six months
or year instead OF checking account.
Last night the banks notified council
they could not pay higher interest.
Compulsory for City.
Under the law the city must deposit
all OF their money with local banks.
There was no other course left then
but TO deposit the money at three per-
cent The law also states that the
city must not deposit with any one
bank more than the total amount OF
capital and surplus stock OF the par
ticular bank.
The city will then deposit the
money at three percent with the
banks, except about $4,000 which
they will deposit with the Wheeling
Bank"& Trust company at an interest
OF five and one-Quarter percent. This
can be done under an agreement made
between the city and bank about
year ago, the contract being made for
two years. whereby the city would re-
ceive FIVE and one-quarter percent en-
money deposited on daily balances.
the amount not to exceed the capital
and surplus stock of the bank. AS II
Is, the city has several hundred thou
sands Of dollars on deposit with this
bank. and can still deposit about SlO.-
TOO and keep within the total amount
OF capital and surplus stock OF the
bank.
Objections Raised.
Councilman c. Morgan Yester stat.
ed that before voting on the motion
TO deposit the money with the banks
at three percent he wanted to state
THAT he did not care to deposit this
Honey OF the City's at three percent,
& stated that the interest was too
iowsssut that there was nothing else
lelt unle-sshe law than to deposit the
money ana IN that reason only, he
would vote In faser Of the motion,
Councilman McG-egor stated ne
would vote against the.Saotton II 70
said that Councilman McGrsEor stated
that 1t was not right 10 coI,seI rho
Wheeling Bank & Trust company a.
take this amount Of money at Ave and
one-quarter percent and the other
banks only paying three percent.
When the motion was made, Council.
man McGregor amended the motion To
read that the Wheeling Bank & Trust
company De given their apportton at
three percent There was no second
to the amendment. and It lost. The
original motion was made, and the
vote was seven to four.