Western appeal. [volume] (Saint Paul, Minn.) 1885-18??, 1888-10-27
STOLE TIE FUNDS.
C1eveland's City Treasurer a Defaulter to
the Amount Of Over s4OO,OOO- He Skips


the Amount Of Over 100000 He skips
to Foreign 'shore-Excitement Over
the Discovery of His Crime.
CLEVELAND, o., Oct. 24-The greatest
excitement prevails here in financial and
business, as well as social circles over the
reported defalcation of City Treasurer
Thomas Axworthy. Mr., Axwortfy left
the city on September 90, going direct to
New YorktCity, from where he is said to
have left for Montreal, Can, on Septem-
per ~. Investigation so far develops a
shortage OF city funds Of over 400, 900, and
it is thought that further investigation
will increase the amount
Axworthy's bondsmen, consisting of
United States SenaUsr Payne and j. 81.
Wade, Jr., who are on his bond for $780,
900, had hurried meeting at the office of
Attorney Estey, Dickey and Squire about
midnight Monday night, and attachments
were Immediately taken out, one for $500, 5
600, and the other by the National Bank Of
Commerce for $4,000, to secure them
selves 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 on deposit
and on the numerous firms in which the
defaulting treasurer is Interested. All
city funds have heretofore been deposited
IN the various banks in the treasurer's
own name, but a recent law compelled
tne oepositlns OF all funds in one
bank, selected from bids This
law took effect last week and
precipitated the crash. AXworthy's reason
for embezzling are unknown. He was
considered very wealthy and rated by
n q ut l,rf =
million dollars. Many believe that he was
caught in Hutchinsons wheat corner and
lost half a million dollars. There is on
uepOslt IN various city banks about $3.50, 900
in Treasurer Axworthy's name, but how
much ofitls 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
defalcation came like a thunder-clap out of
q clear sky. His bondsmen are good for
the amount, but it is feared that endless
trouble will follow any efforts to collect
from them. There is talk of another tax
levy to meet the current expenses of the
city, as the treasury is empty.
From later Developments it is learned
that AXWOrthy has fled 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
the city department 1876, SS7. a. To Offset
this there IS in the banks here
s44', .05 making the deficit 1920 1859
The above sum has all been deposited in
Axworthy's name and was attached by his
b0ndSmen 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 Az
worthy's name it can be shown
to be city funds. Should the
hondsmen succeed in obtaining it the
city will be just that much absolute loser
without any possible means of indemnitica-
slon. In case the bondsmen should gain
control of it their loss would really be only
the difference between the deficit Of $40
AT. so and the amount OF $447, $50. 05 in bank
In addition to the city funds in his pos-
session, Treasurer Axworthy also hold
Sl92, 600 belonging to the Board of Educa-
tlon $3.50 Of the police pension fund
and So, 200 Of the tiremen's pension fund.
VI these sums there are no accounts The
Board OF Education money is secured by
a bond given by Selah Cham berlain and
Truman T. Handy It is stated that he
had money belonging to the local 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 premises. 1t was de-
cided to declare the Office of treasurer
vacant, and that will be done as soon as
the proper resolutions can be passed
when temporary treasurer will be ap-
pointed to fill out AxWorthy's term.