Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1883-01-08
Invested in Mexican Silver Mine BY
Polk.
THE STEAL EXCEEDS $500. 200.
And Has Been Going On For the Past
Five Years.
THE TREASURER FLED TO MEXICO.
Anxiety Among the New York Bond
DealerS-The Legislature In
Yestigating.
HE TREASURER FLED TOMEXICO.
A WARM NEST, BUT NO BIRD.


NASHVILLE, Tenn, Jan. 6.-An american
special from Milan, Tenn, says: State
Treasurer Polk, accompanied by Mr.. Van
Polk and a Mexican servant, reached Mi
Ian Wednesday night and left Thursday
morning, it is supposed, in the direction
of northern Mexico, where the Folks have
an interest in a silver mine. Van Folks
baggage was checked for New Orleans.
Col. Marsh Folks family staid at Milan
Friday night, and went to Bolivar, their
old home, this morning.
TO BE INVESTIGATED.
The house of representatives to-day
adopted a resolution for joint commit
tee to investigate the amount said to be
short in the accounts of the treasurer, and
whether the money was lost By speculation
or loaned to personal friends, also whether
defalcation Is of recent or long standing;
whether concealed by the treasurer alone
or with the connivance of others, and re
port the result as early as practicable.
WENT TO PAY FOB SILVER MITA.
It has thus far bean positively dis
covered, by proof, that ths.defslcation be-
gan five years ago; also that one cheok
drawn by the treasurer for $4,000 went 10
pay for his interest in a silver mine in
Mexico, and it is believed that he also sup
piled the money to pay for another inher-
est of four Of mis- partners in the mine.
HoT ALL COM.
1t is known that S125,000 of public
funds belonging to the treasury account
are on deposit in two Nashville banks,
and it is hoped there may be other sums in
other banks. Polk had beea
interested in various speculative schemes.
In Tennessee largo amounts have bson on
hand within a year, but cannot be found.
The defaIcation began i've years ago,
and increased rapidly. After tho passage
of the 1O3 funding bill, the testimony
shows many
sPECULATIoNS IN NEW YORK,
also shows that ex-Representativs Duncan
Cooper's orders on the treasury were
always paid, the clerk being instructed by
Polk to pay them. The orders were all in
an envelope until a few
days ago and it is supposed
that Polk took them with him. The testi-
mony also shows that the late Major
O'Connor, killed at Knoxville in last No
vember owes Polk $4,000 and gave his due
bill, which Pslk took with him.
Polk paid the states money for exchange
onsSan Francisco, with which to pay for
his silver mine in Mexico. Checks were
found in the safe with no evidence that
they had passed through the hands of the
comptroller. The books show that the
Mechanics bank, of Knoxville, owes the
state $25, 900, but the bank claims to have
paid money to O'Connor for Polk. The
missing United States bonds were 1905,
and were part of the school fund.
Polk was interested with O'Connor in
the Gadsden ore banks, but the stock was
in O'Connor's name. Though $4,000 of
it was paid for out of the state treasury
thousands of dollars of the checks show
they were drawn by NJ. T. Polk, treasurer
and payable to NJ. T. Polk, not being
countersigned by the comptroller.
In an interview with Representative
Milliken, one of the investigation com
mittee, he says the deficit in the treasurer's
account is over 100000, including
fifty United States 81 900 bonds.
THE EFFECT IN NEW YORK.
New YORK, Jan. 6.-The story of the de-
falcation of the state treasurer of Tennes-
see, and that his losses had been created
by speculations in Wall street, caused
some excitement in the financial circles of
this city, as large portion of the bonds
are held abroad, as well as in this country.
The principal bankers of this city have re-
ceived numerous cable messages and tele
grams respecting the course to be pursued
with regard to Tennessee bonds, and this
has added to the excitement created by
ANXIOUS INQUIRIES
of those holding bonds in this city.
reporter called on number
of New York firms reputed to be
deeply interested in southern transactions,
but from the heads OF these houses nothing
could be learned as to Treasurer Polk hav-
ing operated in any way on the general
market; but it is said, having great faith
in the honesty of the peeple of Tennessee
he not only bought heavily himself
of Tennessee bonds, but
ADVISED HIS FRIENDS TO PURCHASE
them, feeling surel that the injunction
would never be allowed, and that the debt
would be honestly paid. Mr.. Polk bought
bonds high as 76, if not higher, and is said
. to have been compelled to sell at so or
even less. They are even much lower to-
day than at the time Polk sold, and he is
supposed to hold a large block of these
bonds at the present time.