Five Mile Beach weekly journal., 1922-06-30

terest on the $168, 900, effective June l,
1920, for the reason that he felt that
if the Union Bank was good enough to
assist the county at that particular
period by taking a bond issue of
$4,000 at the then low rate of 51b
per cent, that it was only fair that
the Union Bank should receive the
same treatment as did Messrs. Horn
blower & Weeks, purchasers of the
$2S6, 900 bond issue.
In reference to account No. 2, Mr..
Saul stated that the finance commit
tee arranged the sale of bonds to
Messrs. Hornblower e. Weeks, of New
York, after the $2S6,00 10 issue had been
duly advertised and no bids received,
and it was his understanding that no
interest was to be required on the
proceeds of such sale and which was
done to offset the low rate of interest
on said issue and the then existing
high rate of interest to be obtained
from other securities, and he further
understood that the finance committee
had requested that if such an agree
ment a reached the money should
be deposited in Cape May County. 1.-THE
only connection I had with this trans
action was when l went to New York
to make delivery of the bonds, and not
caring to go alone, Mr.. Downs went to
New York with me, and when we ar
rived in New York and the bonds were
turned over to Mr.. Downs as repre-
sentative of the Union Bank and he
(Downs) issued to me a deposit re-
ceipt of the Union Bank marked for
collection"
Mr.. Otto Koeneke, former chairman
of the finance committee, was then
called and asked to explain the trans
action. He stated as follows:
Evidently owing to the low rate of
interest specified for the $780, 900 bond
issue no bids were received and the
Board in an endeavor to dispose of same
at 55 per cent rate of interest the fin
nee committee was instructed to take
up the matter of sale and did so with a
representative of J. B. Vaningen Com
pany, who was present the day bids
" NC AONC4NCus VI IL cludlblOh "
himself CMr. Koeneke) Messrs. Camp
and Hewitt were present at a con-
ference with said representative, and
after said conference they reported to
the Board the arrangement that could
be made for the disposal of the bonds.
After the Board meeting Mr.. Vaningen
and a Mr.. Cassen asked the finance
committee if it would introduce them
to some bank of Wildwood or Cape
May County, as a result of which said
gentlemen, accompanied myself and
Mr.. Hewitt to Wildwood and we intro
duced them to Captain Downs, after
which we left them and I do not know
what transpired between Vaningen,
Cassen and Mr.. Downs"
In answer to a question as to
whether the Board of Chosen Free
holders had ever taken any action to
his knowledge, requiring the payment
of interest on deposits, he stated:
During my term on the Board no
arrangement or action was ever taken
to require interest to be paid on bank
deposits or the proceeds of the sale
of 1886, 900 bond issue"
Captain Frank P. Downs, president
of the Union Bank, was then called
and asked to make a statement to the
Board in reference to the afOremen-
toned transactions. Captain Downs
stated that 8 per cent interest had
been paid on the $16S, 900 account, the
1o,t ,Oo,rN,Onf hnin0 Taad0 on Nav ri
1920, in amount $1,15S.69, and pro-
duced the original bank record show
ing the credit to the county therefor,
and he further stated that the entire
time that this fund was on deposit 1t
was used as a checking account in
payment of contract bills and in ac-
cordance with banking rules was not
subject to interest payment.
In reference to account No. 1 and
No. 2, Mr.. Downs was asked this ques-
ton: Did you instruct your cashier
or bookkeeper to mark any county
account no INTEREST,"" Answer: Il
did not and did not know of same be-
ing done until two or three days after
such action"
Conclusion: The Board, after hear
ing witnesses and careful consider
alton of entire subject do not find evil
dence to warrant action for recovery
of interest, the collection of interest
and bank deposits by municipalities
being a discretionary matter.
Moved by Mr.. Swain, seconded by
Mr.. Chadwick, that the conclusion be
adopted. Carried.
6. In reference to item of $2,0S3.0O
to Craythorn & Nickerson Company
upon an alleged fake bill after the
county engineer had stricken out the
item from the North Wildwood Bulk
head, Mr.. Craythorn, of Craythorn &
Nickerson Company, was called and
asked what he had to say in reference
thereto and stated that this bill COW
cred services rendered in hauling
broken concrete from the government
barracks at Cape May and dumping