Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1888-10-31
STOLE I HE FUNDS.

tA0 AnOunC O1sOv0r 04OUsOUO Sklp0
20 Foreign Observation-Disclosures over
tho Discovery OF His Crime.
CLEVELAND, O., Oct. A.-Th0 greatest
excitement prevails here in financial and
business, as we'll as social circles over the
reported defalcation OF City Treasurer
Thomas AxWorthy. Mr.. Axworthy left
tho city on September q, going direct to
New York City, from whore he is said to
have left for Montreal, Can, on Septem.
Der %. Investigation so far develops q
shortage Of city funds Of over 400 600, and
It Is thought that further investigation
will increase the amount.
5@AxwOrthy,s b0ndsmen, consisting Of
United States Senator Payne and ]. 81.
Wade, Jr, who are on his bond for $500, :
700, had hurried meeting at tho Office Of
Attorney Estey, Dickey and Squire about
midnight Monday night, and attachments
were immediately taken out, one for $780,
700, and the other by the National Bank of
Commerce for &25, 600, to secure them
.elves ON Axworthy's paper. All Of
Axworthy's property in the city, consisting
Of large amounts Of real estate and lake
vessels, were also attached, and garnish-
ments were served on all local banks where
city and personal money was on deposit.
and on the numerous firms in which the
aefaulting treasurer is interested. All
city funds have heretofore been deposited
IN the various banks in the treasurer's
own name, but recent law compelled
the depositiug OF oil funds in one
bank, selected from bids This
precipitated the crash. Axworthy's reason
for enlbezzling are unknown. He was
considered very wealthy and rated by
n u RI 0f no
million dollars. Many believe that he was
caught in Hutchinson's wheat corner and
lost h..lf million dollars. There is on
deposit in various city banks about $3.50, GOO
in Treasurer Axworthy's name, but how
much Of it is city funds and how much per-
sonal It is impossible to tell.
Axworthy lived in fine style, but not
even suspicion that he was using the
city's funds was entertained by any Of his
friends, and the announcement of the great
defa] cation came like thunder clap out Of
a clear sky. His bondsmen are good for
the amount, but it is feared that eadless
trov BILE will follow any efforts to collect
from them. There is talk Of another tax
levy to meet the current expenses of the
city, IS the treasury is empty.
From later developments II is learned
that Axworthy has fed to Europe A
cablegram, known to haze been from him,
was received by one of his married
daughters here on Saturday last
dated Liverpool, which read: "Papa
is In Canada; tell mamma not to
worry" A full investigation Of the city
treasurer's accounts has been made, which
shows that there should be to the credit Of
this there IS in the banks here
s447, 5o05, making the deficit 1929, 437. So
The above sum has all been deposited in
Axworthy's name and was attached by his
bondsmen with the rest of his personal
property. The city will fight the claim
made to this money, declaring that al
though it was deposited In Ak
sorthy's name it can be shown
to be city funds. Should the
bondsmen succeed in obtaining it the
city will be just that much absolute loser
without any possible means of indemnifica-
ton. In case the bondsmen should gain
control of it their loss would really be only
the difference between the deficit of $40, :
49,. 50 and the amount Of S447, 45O 05 in bank
In addition to the city funds in his POS.
session, Treasurer Axworthy also held
1872, QUO belonging to the Board of Educa-
ton SIS, 900 Of the police pension fund
and $1,000 Of the tiremen's pension fund
Or these sums there arc no accounts The
Board of Education money is secured by
bond given by Selah Cham berlain and
Truman P. Handy. It is stated that he
had money belonging to the !ocal Demo-
cratic committee, and was the stake
holder of several hundred dollars in
election bets.
The Common Council met last night to
take action in the promises. 1t was de-
<s11o tn 1or< fho 1f43o 0f tNao
vacant. and that will be done as soon as
the proper resolutions can be passed,
when temporary treasurer will be APP
n0inted To fill ont Axunrthv,s torn