June 20, 1917
BANKS REFUSE TO PAY INTEREST ON CITY DEPOSITS
The members of the city council were considerably peeved at their meeting last night when a communication from the Medford banks was read in which the banks stated that they accepted the recent order of the council to furnish surety company bonds to protect city deposits, but that hereafter they would pay no interest on city deposits.
The temper of the councilmen as shown in remarks last night is such that unless the Medford banks continue to pay interest on city deposits, the council will place city funds in banks that will pay interest. Mayor Gates said: "Everytime we ask something of the banks they take away something from the city. They first reduced the rate of interest and now they refuse to pay any interest."
The charter of the city stipulates that the council must require surety bonds of the banks.
The entire matter was placed in the hands of the council finance committee with the suggestion that a mutual agreement of some kind might be made with the banks which would lead to a continuation of paying interest.
The council members will spend Friday at the city water works intake to decide on the best means to provided the city with adequate and healthful water supply with the limited finances which at present can be devoted to this matter.
The consensus of opinion of the councilmen is that while the present intake must be removed to another location as soon as possible, the present flimsy intake structure may be repaired at expense of several hundred dollars to last for several months or until such time as the council has funds on hand which will permit the removal of the intake to another location.
Although plans were informally discussed to obtain the city's water supply from an entirely new source than the Fish Lake dam, it was generally admitted that such talk was useless at the present time because it will be several years at least before the city can spend from $125,000 to $200,000 on a new source of supply.