Little Falls transcript. [volume] (Little Falls, Morrison County, Minn.) 1876-1894, 1891-11-06
Brainerd Officers Default.
From the Brainerd- Tribune.

From the Brainerd Tribune.
"The startling disclosures Of the
past few days, showing heavy detail
cations in the office OF the city Treas
ury, A. J. Demueles, have dumbfound
ed his friends. and surprised and
shocked the entire community. The
Finance Committee of the City Coun-
Gil have barely completed the work
of examining the books Of the late
City Clerk, Pat Murphy, in which
they found deficit OF nearly 81 500,
when they are confronted with defal-
cations in the Treasurer's Office
which at this writing it is estimat ted
will aggregate at least $4,000, and
perhaps more.
1t does not appear that any sus-
picion was attached to Mr.. Demueles
during the Murphy investigation, or
from any developments growing out
of said investigation. Nor was there
any collision between the two oftici-
ais, 50 far as we can learn, though
it is now considered very probable
that there might have been. The dis
covery OF the deficit in the treasury
came about in another way.
Some weeks ago an ordinance was
passed bv the Council which provid-
ed for the appointment OF Il Board
OF Sinking Fund Commissioners, to
consist of the Mayor, Treasurer and
Chairman Of the finance committee
OF the City Council. to whom it is
the duty Of the City Treasurer to
tnrn over all moneys belonging to
or appropriately for the Sinking Fund.
The Sinking Fund Commissioners are
required to give bond in the sum OF
$4,000 each. The new Commissioners
In making arrangements for the Sc
curities required with their proposed
bondsmen made some inquiry us to
the amount to the credit Of the city
in the Sinking Fund. Upon investi-
cation the startling discovery was
made that there was not u dollar on
deposit to the Treastrcr's credit as a
sinking fund, though there should be
$2,45O deposited for that purpose.
Further Investigations followed,
with the result that the Treasurer
finally acknowledged that he had
used the city funds, and placed the
amount at over $4,000.
'Mr. Demueles could not be seen
yesterday to give his version OF the
matter, as he was not in the city,
but we are informed that he figures
the amount he is in default at 4,424.
We understand. also, that he stated
that the money had been used from
time to time in paying old debts, and
also In investing to some extent in
real estate. 1t is thought by those
familiar with the city's finances that
his shortage will aggregate fully 49,
600, and may he considerable more
than that.
| 1T has also come to light that
Brainerd's appOrtionment Of the
State Fire Insurance tax for 1890,
amounting to $2O6.l4, which goes to
the support Of the Fire Department,
has never been accounted for, though
it was it was RENTED to the City
Treasurer by check dated July %,
1880, which check was made payable
to the Treasurer. and has been re-
turned to the State authorizes as
paid, with the Treasurer's indorse-
ment. The apportionment for 1891,
amounting to $2O2.S6, has also not
been accounted for, and it is prob
able that it also was duly received
by the Treasurer.
1.-The Treasurer is required to give
bond in the sum OF $4,000, with ten
bondsmen, who qualify for $4,000.
Mr.. Demueles' bOndsmen are; s. Koop,
S. f. Alderman, j. W. Koop, Charles
kinkele, Werner Hemstead, G. D.
LaBarr, Geo. N. Day. E. w. Lynch,
Con O'Brien and H. J. Spencer. The
bondsmen held meeting on Thursday
evening, and Mr.. Demueles was pres.
ent. 1t is understood that he declar.
ed at this meeting his earnest deter.
mination to make every possible ef.
fort to make good the amount OF
his defalcatiOn, and insure his bonds
men against pecuniary loss, and with
that object in view he left on the ear.
ly train yesterday morning for St.
Paul.
'"This is Mr.. Demueles' second term
as Treasurer. Although a Democrat
he was elected over the regular can
didate for the Office last spring, by