New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-01-06
DETAILS OF THE DEFALCATION.
inv TELEGRAPH TO THE TRIBUyEl

DETAILS OF THE DEtALCAIlON.
lBY TELEGRAPH THE TRIBUNEI
N,suvIfIr. JAM 5.-A thunderbot from an un-
clouded skytwould have caused less astonishment
and general surprise than the announcement In the
senate Chamber this morning that Marshall 1.
Polk State Treasurer of Tennessee, WAS deiaulter
to the extent of S4O0,O00 No such excitement
has ever been known in tennessee,
and surging breathless crowds are waiting III iroh'
Of the newspaper Offices to hear the iateSt news
Yesterday both branches of tho Legislature py
resolution appointed committee 70 examine Une
hooks of the state officers This Is customary pro-
ceeding. but 1t was noticed that the unusuai pro-
vision of employing an expert accountant WINS eln
braced in the resolution. This committee, shortly
bcfore adjournment, presented the following report:
.'Tbe Joint select committee to settle with the
Controller and Treasurer beg leave to report that
thev have visited the office of the Treasurer ana
anon lpodiry find that the Treasurer is
away from the Capitol and has been ior
two days, and they are not advised wheh
ne Will return. They find his clerk, VINO states
that he cannot 60 iuto a settlement OF the treas
urers accounts till his return. They also nave III
formation from the bOndsmen or some OF them
that the condition of the Treasury Is such that 'hey
feel justified to recommend that the Workings Oh
the Treasury be stopped until an examination can
be had" .
be nnderstating the fact. Every Senator was
on his feet eager to catch the full significance of the
renort When the Senate had recovered from It's
surprise the following resolutions were offered and
adopted:
whereas the Senate reason to believe that Mt ~ r.
Polk the present Treasurer, Is deisuer ior doo"'
whereas the bond given by said officer is not sufficient
in amount to the sad dehcitz therefore DC
Resotred by and House OF Representat&es, &
Thai the select joint committee aPPSnea be the
Treasurer's Office and proceed with the nyestisa+
ticn Of the same and that insy hSs. noI,dy boIdps ~
funds Of the State that they ., may Iny-ortnS aGls
upon any Gee TreSsuTer until otherwise ordered
Resolced That committee Is instructed 70 take tne
n tbs State treasurer NJ 7. Polk it having reason to
believe he is q defaulter
The resolutions were also adopted by the House
Of REPRESENTATIVES and signed by the Governor ana
this afternoon the committee took charge OF the
Treasurer's Office Tonight rgld examination INTO
its affairs is being made 1t was found that there
was on hand in the Treasury only about $4,000,
the Treasurer's cash account being $29O,OOO short.
Ore hundred thousand dollars IN United States
bonds belonging to the State cannot be found,
TINS making total deficit of about S4OO,OOO. The
Treasurer is under bond of only 100000, while
at times he has had as much as $o0O,OOO on mana.
His bondsmen obtained an inkllng OF the state OF
affairs the day before yesterday, and ADMIT that the
delacatiOn will be at least Piouooo, "hhe IL may
reach .alf million.
State Treasurer Polk has departed. He left here
ON Wednesday night When last heard from he
was at Milan, Tenn From this point letter was
received from him by his confidential clerk
stating that he would be back on Sunday.
From there he went South and it is supposed that
he has gone to Mexico. An uncOnnTIned report
reached here tonight that he has been captured at
treasurer Polk is the cousin of General Leonidas
Polk and the nephew of President James X. Polk
He was heir OF that gentlemans estate, which was
lefr AZ the death of Mrs. Polk to his
most deserving knsman. He had one leg hayiI
lost the other at shiloh In the late var lie was
inst completing his third term As state treasurer
A wear ago, in view OF the extraordinary large
amount of money OH hand, an effort was maze 70
increase the treasurers bond Inc Dl!l pass%Jo % 1no
House, but while pending in the Senate the CLERKS
desk was broken open and this blll was stolen ana
was never found. As the Legislature was then
Oh the of adjournment for the session TINS kied
the bill. Who stole the bill has never Ocen ascer-
tanned. Ii was then suspected mat anaIs were NOT
straight, but tile friends of Treasurer foiK sue
eeeded IN having killed legislative resolution pro-
yidng for an investigation IN the aiiafs OF his ONCE
The question of d" where has the money gone is
easily answered. Treasurer Polk was member OF
the Funding Board, and while that board had us
headquarters in New-York this iall ne was sald 10
have been engaged IN extensive STOCK f Mons,
phs and Charleston. II Is the general opinion, one
OF his bondsnen coinciding IN IT,, that inc states
money was swallowed up in WalI-st. ,
All manner OF IumOrs dre aflOat as TO wheiher the
bondsnen are secured, and he impression prevails
that they arc not. According 10 the bond oach one
is liable for $4,000 but no Inore, the bondsmen
being ten in .numoer The principal bonds
men are William Morrow tormer treasurer
William Duncan and Russell Duncan, of
Newell, Duncan g. Co.; j. II. Polk,
son OF the treasurer, and Max Sax, of the Sax
Bank. Russell Duncan, who was with the running
Board IN New-Y0rk, says that Treasurer Polk has
beeu despondent for months and has frequently
expressed the wish that he was dead
i,rs poik saws that her husband was
Iast at home on Wednesday, and that
she has no knowledge Of where ne IS;
with one of the cormit,e 10 that the defalcatOn
will reach half a million. Experts will be ready TO
present detailed report by morning. In account
with one bank there Is said TO be discrepancy OF
$4,000 between the banks statement and tie
fressurer's book. The amount Of the defalcation
,lx oh