Upon receipt by the city of notice from the chief of the division of liquor control of the state of an application for a new license as a retailer, dispenser or club within the city or for transfer of an existing license, it shall be the duty of the chief of police to make a thorough investigation concerning the character and integrity of the applicant, the conditions existing in the neighborhood where such establishment is sought, the number of existing licenses in the locality or area affected, and the effect of the granting of such license or transfer upon the public health, safety and morals. (Prior code § 3-7).