Tacoma Sues Its Ex-Treasurer Over Public Money Lost in Failed Banks
The city argues George W. Boggs should answer for funds left in banks that collapsed — but a judge rules the council had no right to name depositories in the first place.
Tacoma, April 30.—Special.—The case of the city against ex-City Treasurer George W. Boggs and six of his bondsmen, to recover the funds deposited in insolvent banks, was up today in department No. 1 of the superior court on a demurrer of the city to the answer of Boggs and a number of the bondsmen. After a lengthy argument the demurrer was sustained.
The portion of the answer against which the demurrer was directed was that which alleged that Boggs' responsibility ceased when the council named the banks as city depositories. Judge Pritchard referred to this in rendering his decision, and said if the council did make such designation it had no right to do so. The court held that Boggs was not compelled to put the money in any particular bank or banks, but could have acted differently had he desired.
The defense excepted to the ruling, and was allowed ten days to plead. They were also allowed ten days in which to demur to the amended complaint.
“The court held that Boggs was not compelled to put the money in any particular bank or banks, but could have acted differently had he desired.”
A city treasurer's decision to park public money in banks that then failed landed in court, with the council's power to name depositories itself under scrutiny. It is a strikingly modern argument about fiduciary duty, public deposits, and who answers when a bank goes under — questions that resurface every time a financial institution collapses today.
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