New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-01-13
TREASURER POLK'S THEFTS.
HIS ACCOUNTS SHORT FOR FIVE YEARS.
REPORT OF TIE LEGISLATIVE CoMMTTEE-How lie
PLANNED HIS ROBBERIEs- FALSE CREDITS AT
VARIOUS BANKS

REPORT OF TIE LEGISLATIVE COMMUNICATION HE
PLANNED HIS RoBBERIEs-fALsE CREDITS AT
VARIOUS BANKS.
10y TELEGRAPH TO THE TRIBUNEl
NASHVILLE, Tenn, Jan. 1.-THE report OF the
Investigating Committee OF the Legislature when
hasl been investigating the Treasury defaut Tor the
last week will be presented to the Legislature To-
morrow. The report Is of sensational char-
acter and contains some startling facts
which when given out will create surprise and
astOnishment That such corruption and venahty
could have been covered IN for five long years Is
almost beyond belief. The report starts out by say
ing that the defalcation in the Treasury and the
subsequent flight and capture of the Treasurer IN
Tennessee are too well known for comment. The
absenceOf the Treasurer impeded the investigation
of the committee to great extent, but IL
is enabled to tell how the money went
from the beginning, much information
being derived from James C. Fleming,
the present clerk and confidential bookkeeper of the
defaultng Treasurer, who has been in office since
March, 1878. AT that time Polk was behind in his
accounts from 800 900 to $40 000 and this gradu-
ally increased until about the passage OF the
Hundred and three bill,' when the affairs Of his
Office became heavily involved. The committee say
that at the time Polk made his settlement with the
Legislature in 1881 he was behind Sal 900, this
being just before the passage of the "Hundred-and
three bill" He was enabled to make his settlement
with the Legislature by the aid of Thomas
OConnor who gave him $4,000 IN cash and
certificate of deposit OH his (OConnors) bank, the
Mechanics National, of Knoxville, for $4,000,
which were returned to OConnOr after the adjourn
ment of the Legislature
In April, 1852, when Polk again had to pass the
SCRUTINY of the Legislative Committee he was short
fottefed into the field q actual dishonesty.
lie deposited checks for $4,000 IN the FIRST Ma
tiona Bank of Nashville, on other state depos;,
itore requesting that they should not be pres nted
for few days. The bank complied with his re-
quest, but refused to give him credit on the books
of the bank He entered the credits on
his hooks and as the committee did not
investigate the books of the bank. they took
Tor granted he had money there, as was shown by
his books. Other banks, hewever, did help him
to conceal his shOrtness. He was given false
credit of $33,979 rs at the Nashville Savings
Bank (Sax Bank the credit appearing on
Folks books and also on the books of the bank.
He was given false credit of $57 $50 at the Mer-
chants National Bank Nashville, the credit appear
bank Gthe McchanIcs' National. of Knoxville he
was given false credit of $4,000, the credit APP
of $4,000 appeared on the books OF the Bank
of Columbia. All the above banks are
State repositories The committee passed his &C
counts and reported his office all right.
explains that Polk gave him checks
which were to be held up, and
anything wrong, The committee add that
the conduct OF the banks in giving Polk false credit
above, is unprecedented in the history OF legti-
matey conducted and honorable banking, and that
it was indefenslble in law and morals. The
committee advise that the Attoney-General OF
the State be instructed to proceed against the banks
to recover the amount of defalcatons since that
time. The report said that had the ban ks not done
this Folks delinquency would have been found
out and the state saved 100000, theamount ofthe
default since that time.
A detailed list of Folks investments are given.
In New York last summer while funding bonds Polk
entered into neavy ,sPeculatSns III Louisville ana
Nashville stock with Victor Newcombe and lost
large amount of money. Checks for large amounts,
signed by Polk in favor CsnH OF Victor N sW
s S6S Hd Rsa Co. Co.. GSnnp OF New YORK. SG
We're sent here for collection and PAID by Folks
clerk by order of Polk out of the treasury. He was
also in pool i'll Memphis and Charleston stock IN
Committee cannot find these checks
Polk nyng tH taken t a@an away Setweea
that OConnor came to the Treasury frequently
and demanded money which was always
given him. Polk once remarked to Fleming
" jim if can once get my neck from under OCon-
nor's heel, - - him, I'll kill him|
The committee rro also lind drau that 1 16s
beng countersigned by the Controller,
and it insructs the acknowledgements investigate
and proceed against the banks caShing them,
if in his opinion it can be done also to
proceed agalnsg the parties in whose favor the
caecSs were drawn in New-York Polk invested
$4,000 in silver mines In Mexico
$4,000 in The Daily american when the
Russell party bought it last summer large amount
in the iron interests in Alabama and the lumber in
terests in North Carolina All of these amounts
were paid out Of the Treasury.
The mold O'Connors cemed to have on Polk was the
fact of his having helped Polk to cover his
deficiency III the cash account in 1881. The
Committee report the entire deficiency in round
numbers at $4O2 900. The committee reports
that he loaned large sums to various
persons. and 1T recommends that they be
proceeded against to recover the amounts The
amount of these loans is about $150,O0O. Polk
will reach here tomorrow morning i'll the custody
OF the United States Marshal.
Atha Thomas was elected Treasurer of the State
to-day.