Evening star. [volume] (Washington, D.C.) 1854-1972, 1892-12-16

TEE SENSATIONAL ENBEzzLEMENr OF TIE FOR
nxR CITY rREssrRER RECALLED III A HEAR
ING IN BOSTON roDAY-Hr-ToRY ov ONE OF
rHR LAkoksr STEALS II TIE coUsrays HIS
roRx.
srsrisi Dispatch 10 The Evening star.
BosroS. Dec ia sensational and highly
interesting phase Of the famous $500 900 defai-
cation Of Thomas Axworthv. former city treas
urer Of Cleveland. Ohio. came up in Boston
today. II "a. the most decisive and important
move yet taken by the city Of Cleveland to re-
cover what IL due from the various bondsmen
Of the defaulting official
The responsibility Of making good the loss Of
the public funds Is divided between six sets Of
boudsmen-three sets to guarantee the faithful
Stewardship Of Mr.. Axworthy a. treasurer of the
city proper and three more a. treasurer Of the
board Of edncstion- For four years, ever since
Arworthys flight in 1855. continued effort has
been made 10 determine whom and how the
money was embezzled, in order to hx the
amount due from each set Of bondsmen- In
thee efforts to shift the responsibility upon one
another and their fertility in setting up legal
obstacles the bondsn,en bid fair to escape alto
gether.
Today the deposition Of Charles H. Watkins,
now Of Pueblo, Col. and formerly first assist
ant city treas>er Of Cleveland under Thomas
Axvorthy was taken His story lets in light
on many DARK points and makes a complete and
eonnected narrative possible. The hearing be-
gan at $40 O'Clock this morning In suite No.
1Is and IVA, Young's Hotel The examination
Of Mr.. Watkins was conducted by City Solicitor
General I'd 8. Never.
TIE AIwoRTHT pEEALoATroS.
tom" Axvorthy. a. he aud Is familiarly
Known not only in Cleveland and all over Ohio,
but in every lake port from Buffalo to Duluth,
FIRST became treasurer Of Cleveland ten years
ago-in April. 1883. He served FIVE and one
half years, until October "a. 1855. when he fed
from the city. leaving q deficit OF just -1s9, 200
In the city funds
His embezziemsnt OF the ci:y's money proves
10 have begun even in his first term of office.
There II q shortage in his accounts during that
period. namely. from lSss to April. 1850: OF
els. 900. His bondsmen during his hrst
term we're: ". J. Gordon, The famous
horse breeder; James Y. Clark, John
Todd. selah Chamberlain and T. Z. Hardy.
OF these all but Mr.. Todd and Mt. Hardy are
dead, and their interest in the present contest
are represented by their estates.
Treasurer AxwOrthy a man Of many en-
terprises, though most OF them in the di-
rection Of coal and iron He had genial dis
position, and no citizen Of Cleveland was more
popular than he, not only among the boys
who run political campaigns, but among the
conservative business men Of the city. He
stood well with all the banks and being a man
Of large wealth. with . reputation of being even
much richer than he was. he found il easy to
do pretty nearly what he pleased with the CITY
money. Bank officials and others allowed him
10 deposit, to his own credit. money that they
knew ought TO have known belonged to the
city and winked at II, because they thought he
was good for IL, as the phrase goes. He used
the city's money and his own interchangeably,
converting the funds which he held ~ treas
urer 10 his private account and returning en-
forced loan when the money had served his
purpose. That Is the way he began. In the
end he didn't return 1t all
THE PRINCE OF ExBEzzLERs
As every time he deposited trust fundst 10 his
own individual credit wa a distinct embezzle-
ment in law. Treasurer Axworthy rank
the prince Of embezzlers. During his term Of
once no less than Sl2, 0OO. 900 OF the public
money thus converted to his own use. He
kept an average Of 81 900 900 Of the city funds
deposited in his name. discreetly distrib-
uted among the various banks of the city and
held BY them without interest. This arrange
ment pleased the banks and they were friendly
10 the liberal city treasurer. The amounts so
held BY the banks j. sand 10 have risen AZ high
- 81 500 900 81 one time. There were times
that Axworthy could have repaid all the money
he had forced the city TO lend him and had
something 70 spare. lie says this the
at the close Of his frat term Of Office. and that
II he bad failed Of reelection his successor
would have found no deficit
However this may be, II Is certain that at
1857. his defalcatipns had amounted TO about
Sii0.O increase 81 over 800. 900 during
that term II be had failed of reelection
po-ure would have probably been inevitable.
At any rate II has been said that he spent
go. 900 20 escape defeat. He hoped 20 be able
10 retrieve his fortunes before his third term
expired. but only sank deeper into the mire.
AxwoRTHYs FIIGHT.
Finally. in the fall of ISIS, when he saw that
his shortage amounted to nearly $500 600. as
much - be believed himself TO be worth and
more than all his property and securities could
De made 20 realize, even CO Ol, merry Tom Ak
worthy 'stampeded.' and packing his
valise he walked out OF Cleveland and into
Canada without telling bis wife nor his business
partner any Of hts political allies Of the
democratic faith where he going
He did not 90 empty-handed. He took
s2t0. 900 with him and left $3.50 900 Of city
money deposited in his name In the various
Cleveland banks with which he had been doing
business That made his enlightenment at the
time Of HI. fight t479. 600. \ further deficit Of
s3i0.OO0 revealed upon examination Of
tn tressurers books
There never such a sensation In Ohio as
hi- Digit produced. The frs; intimation that
the city received Of 10 was q two-psge broadside
In the Cleveland Ledder few DAYS after his
departure. The credit Of discovery that be had
really 'skipped' belonged TO Mr. James b.
Morrow, now the LeGders Washington cor
respondent. but then city editor of the Lsdier.
His bond-men did not know II until they read
the paper. and hi. partner and Mr.. AKworthy
profe--ed ignorance. A Is usual in such cases,
be uas the last man o. be suspected and the
public vs- first incredulous and then amazed
Axworthy had no sooner left the city than be
regretted his step. IL he bad done before be
left Cleveland what be did afterward his friends
would have rallied 20 his support and he need
never have left at all The money would have
been refunded and he would have reimbursed
tho-e who helped him out. While In Canada he
wrote 10 Mayor Paddock. his personal friend and
political associate, stating what he had done
and ProPOsing 10 give mp all his property TO
make the shortage good A satisfactory reply
not being forthcoming Ax~orthy became
alarmed and hed TO London. Here he passed
under the name 81 Thomas Anthony tie took
with him 20 London most % the saIO. 900 be
walked s~ay With. dspo-iting si72.0o0 of IL in
one Of the banks there.
LOOMING FOR THE DEFaULTER
In the meantime al. bondsmen we're not idle
His sureties a. city treasurer during his second
and third term. % office were ex-senator Henry
b Payne and the late J. IA. Wade Of Cleveland.
The bouds were s5OO. 90. A. the burden 81
proof IN the matter Of responsibility among
bondsmen rested with the last those " no
we're suretis- when the official defaulted 80
Me--rs. Wade and PAYNE at once began their