The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-09-16


rants Mr.. Spencer said he bad no expert
ence with warrants. but he supposed 80.
Krug also told them tina. If there Vas
any investigation Mr.. Furth would give
him credit for cash % the amount of the
warrants. Witness said this was reassnr-
ing, ~ Ii seemed 90 him . guarantee
against loss. IL satisfied him and he asked
no more questions. Witness suspicious
were aroused By the fact that the amount
of money In the banks did not seem TO
tally with the comptroiier's statement.
DIR. Jordan-Did krng tell you how
much commission he was paid7
Mr.. Spencer-0ur bank paid per cent
on money deposited over s2a 600; the bank
entered il in the city account. but krug
said 1t mixed Up his account and asked for
a certificate of deposit for the amount,
which was given to him. The entries were
made on the bank books The reason no
commission was paid under $50. 900 Was
because II was not available Tor lending, IL
was subject 70 check.
DR.. Sweeney, Delegate Carlisle and DR..
Jordan asked q number of questions with
out eliciting any special fact, except that
Spencer only recently learned that krng
had any balance At the Puget Sound Ma
tionai bank, and that Krug assured them
the 81. 500 loaned Denny had been cred
tied 10 the city.
proposition to have stenographic re-
port of the testimony Was adopted and
then dropped.
n. ii. Latimer. of Dexter Horton & Co.,
was then examined. He had known
krug for six or seven years. He related
that he had called on Krug at the treas
urer's Office in the middle of August with
Mr.. Spencer They were suspicious that
the money was being scattered and that
krug had been purchasing city warrants.
They asked Krug if it were so and he adj
mitted that he had to the amount of $l65,-
COO and that he had made loan Of about
ST., 600 to ID. T. Denny, but that Mr.. Furth
had taken the security and given the city
credit. Replying TO Latimer's question,
Krug said the amount OF the warrants was
subject TO check. Latirner had no
reason to doubt Krugs word. and they
felt satisfied the warrants were safe in
Furth's hands. He had not spoken to
krug since, except in q casual way. Prior
to election he had advanced Krug a little
money to pay campaign expenses. nothing
since
DIR. Jordan asked whether witness would
pay share Of Krug's defaication as one of
his bondsmen. The witness said that was
matter to be determined later. Mr..
Brewer asked the witness how the funds
were to be divided among the banks. ac-
cording TO an ante-election agreement.
Latimer said that his bank was to have
one-quarter of the city's money, but al
though he knew he was not getting it he
did not raise any fuss. In the converse
ton krug had told the witness that he
was sorry that he had made fool of him.
self, but said that he thought he would
come out all right. The witness thought
that it was the business of the finance
committee and not of the bankers to
populations. Replying to DR.. Crichton,
Latimer said that the money paid before
election was paid to Krug.
Mayor Ronald took the stand amid a
buzz of conversation and was asked to tell
about the discovery of Krug's fight from
the city. He told how his attention was
called to the observation-disclosures editorial
and how the search for the missing man
had been commenced. The only money
spent outside of the ordinary was 500
given to Deputy United States Marshal
Quilter. The witness fully believed Krug
defaulter. The steamship Warrimoo
had been watched for thirty-six hours
prior to her departure for Australia, and
he thought it was impossible that Krug
should have escaped from the country.
Andrew Blackstone, deputy city comp
trcller. was the next witness and gave the
statement of the condition of the city
treasury already well known to the people.
DIR. Jordan wanted to know whether the
deputy city treasurer could have known of
the condition OF the treasurer's accounts.
The reply was that the books were all
right: the trouble was that the money
represented by the books was not on hand
in the banks.
DR.. Sweeney moved an adjournment,
but DR.. Jordan objected, saying that the
investigation should go on to finish.
Mr.. Donworth said that Mr.. Spencer
wanted to explain part of his testimony,
and. no one objecting. he was allowed to
make statement as to the interest paid
on large deposits, not to advertise his
bank, he said, but merely that people
might not get wrong impression.
DIR. Sweeney's motion for adjournment
was then voted upon and lost.
Lee B. Hart was called for by Mr.. DON
worth, but Mr.. Hart said he had nothing
to say TO that body.
Ii was proposed to close the case, but
DIR. Sweeney renewed the motion TO adj
journ until Monday night, as by that time
other witnesses might be forthcoming.
The chair declared the motion carried
and the council adjourned until Monday
night.
In the board OF aldermen an ordinance
was passed authorizing the mayor to offer
$l,Jotor the capture of Adolph Krug, in
addition TO the 81, 600 already offered.
The delegates reassembed and the ordi-
nance appropriating 500 for detective
service and other expenses in securing
krug's return was read.
Delegate Crichton said he understood
that 500 had already been expended by
officials. 1t was necessary that ample
funds be available to capture krug. He
believed there were people in the city try
ing TO prevent the return of krug. He
moved to make the amount 81 900, the
mayor to direct the expenditure.
The bill was passed also bill authoriz-
ing employment of additional counsel 10
prosecute suits against bondsmen and the
makers of securities held BY the city. A
bill was also read offering s., 500 reward for
krug's apprehension.
In reply 10 Mr. Carlisle. the mayor said
he had not asked TO have the reward raised
over $1,000. but the aldermen seemed TO
consider it advisable; of course. If the
capture were made by city official he
would not receive it. The bill isiied 10