New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-01-06
COMMENTS IN THIS CITY.
MR. POLK wELL-KNOwN HERE-IuE ANNOUNCE
MENr RECEIYED WITH INCRhDULITY.

Mp porK vs,II-KxOWN HERE-IHE ANNOUNCE
MENT RECEIVED WITH INCRhDULITY.
The news of the defalcation by the State Treas
urer of Tennessee was received in this city through
private dispatches from Nashville late yesterday
afternoon 1t was known to very few persons ana
prominent members of the bOndhoiderS
committee were ignorant of the fact wnen
TRIBUNE reporter sought to gain from thom par'lcu-
lars of the case The announcement caused great
surprise, for Mr.. Polk was well known to some OF
the large bondholders, all of whom spoke of him III
high terms. They were inclined to doubt the truth
of the statement, and all agreed in saying that
the amount of the deficit in his accounts must
have been greatly exaggerated. Mr. Polk spent
several weeks in this city last summer. when the
chief officers of the State opened All oice here lor
the exchange of bonds under the Funding act lie
had separated from the political party with which
he had been identified all his life. so lar as the
payment of the State debt was concerned. lie
had been one of the warmest advocates OF
the Funding bill and he was always eager appaT-
emily to see the act carried into practical operation
Partly on this account, perhaps, he was esteemed
highly by the bondholders who had occasion TO
meet him.
When the announcement was made at the end of
last year that the State Treasurer had decided
not to pay tho January interest on the new
the State excused his action in part on the ground
that he had been influenced by political motives
Knowing that he had been an ardent supporter OF
the Funding act they refused to believe that his
decision not to pay the interest was alto
gether his own act They had reason
TO believe Also that the money raised to pay the
interest was in the State treasury.
The announcement that MI. Polk had been found
TO be defaulter was received with considerable
incredulity. Eugene Kelly, chairman OF the BOND
holders committee exclaimed: 1T is Impossible; /;
I cannot believe it! He may have lost small
sum of money, perhaps, for l know that he
had great faith in the bonds and 1t IS possible
that he NAV have become embarrassed by the recent
decline in the price. There must be some mistake
about this report" =, .
Other bondholders expressed similar surprise, but
not all the same doubt. broker VINO had been
largely interested in Tennessee bonds said:
AZ do not know that am surprised at this
little incident that happened last summer VIII per
mans explain the reason. When the State officers
were here took to them a considerable amount IL
bonds for exchange. | wouldn't even trust
clerk 10 do it. When presented my bonds only
one of the State officers was present and
right before my eyes he signed the new
bonds for himself aud the two other officers
whose signatures were necessary. l objected, of
course to this wholesale forgery and the officer
was rather incensed by what he termed
my unreasonable carefnlness. had
my bonds properly signed but | made up
nv mind then that | wanted no more
Tennessee in mine. THIS sort of busines. may
be the proper thing in that State but 1T IS hardly
suited TO this latitude"
An the Tennessee Donholders who were Informed
of the defalcation yesterday remarked Instantly:
''No wonder that he could not pay the interest !;
he didn't have the money"
They agreed that, If the report was correct,
the money must have been lost i'll buying
Iecollec:ed that Dir. Polk, when here.
had remarked frequently that he was
large holder of the bonds but no particular inpor-
{.,, at tlp statement then, because
was supposed to be made slmply.to show bis iaith
n them and to induce exchanges by the holders OF
the old bonds. IL was suggested as not at all I'M
probable that Mr.. Polk had been acting not alto
cether for himself, but for ring that might
include possibly other officers OF the state.
prominent merchant, large holGer OF the
bonds said sorrowfully: Poor Tennessee! III try
ing to cheat its creditors 1t has been robbed itself
1t may be just retrbutloD"