The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-09-13
KRUG A DEFAULTER.
Considerable Deficiency Found
i'm the Treasury.
GRAVES APPOINTED PRO TEN.
Krux Abseesaed 90 New wessmisstsr--
City Money Used 90 Bay scrip
Kstirnass Of Anoant Missing.

Adoiph Krns, the city treasurer. i de-
faulser and has sbsconded. To what ex-
tent the city treasury - deficient can not
get be determined. but it II believed 20 -
In the neirhborhovd Of s310. 600. Krug Is
believed 10 be in New Westminster, b. G..
having left Seattle on the morning north
bound train yesterday.
The editorial in yesterdays PosrIsrrD-
rresacEs caased the utmost CONSERVATION
in city administration circles yesterday,
and within few hours the mayor, cor
poration counsel, city comptroller aud
President KIoebcr ofthe house of delegates
assembled ut che mayors Office. The
finance committee was summoned. q hasty
examination Of bank balances made and
the following proclamation Issued By the
mayor:
PROCLAMATION gY THE MAYOR OF SEATTLE.
srarE or WAsHTysToS,t
Cry OF SEATTLE
Notice IL hereby given TO Adolph krug.
city treasurer Of the city Of Seattle. and to
nil whom ii may concern. that T. j. n.
Ronald. as mayer of the city OF Seattle, do
hereby suspend the said Adotph Krug
from the Office of city treasurer of the city
OF Seattle for eatise fo-wst.. for lawfully
converting 10 his own use the moneys Of
satd city and for failure 10 safely keep and
account for the moneys received by him n
snch city treasurer, and do hereby call
lpfnt convention Of the members Of the
city council Of said city, 20 be held in the
council chamber OF the house Of dele
gates in the city nail ia said city on
Friday. the 18th day OF September,
lS9s. 1t q O'Clock 10 tae evening. at
which meeting | shall present charges
nealnst said suspended officer. Adolph
Nf.A ar4tff F.Nff ats.H he
resd on said charges In the manner pre-
Bcrlbed by Law and the charter of said city.
And do hereby, in virtue of the author
ity conferred on ine by said charter, tenn
porarily I'll the vacancy in the Office OF
city treasurer OF said city by appointing
Edward O. Graves 20 sad office OF city
treasurer: whoss hereby appointed by me
so said Office.
Witness my hand this 18th day OF Sep
TENDER, 1859. ]. T. Rowan.
Mayor OF the City OF Seattle.
Attest: GEORGE }. sToSEMAN,
City Clerk.
About 10 O'Clock there assembled in the
mayors Office Mayor Ronald, City Comp
tyogier Carson, Corporation Counsel Dom
worth. DR.. J. 8. Kloeber. Aldermen Miller.
Daulton, Cram and Ingram, Delegates
Lyon, Shields aud Crichton. 1t was de-
termined to call upon Krug for an ex-
PLANTATION and that the finance committee
visit the banks and ascertain how much
money was en- deposit. While they went
on their mission, Krug was sent for. but
he could not be- found. Deputy John },
knott knew nothing OF his whereabouts,
but Max Muller. q CLERK In the Office. In
reply 20 questions stated that Mr., Krug
arrived at the Office before O'Clock. opened
the vault in tho usual course OF business.
and then went into IL, but what he did in
there Muller did not know. Krug re-
marked that he was going out OF town to
attend TO some business, and would return
soon. That was the last seen OF him.
DIR. kloeber was then requested to visit
Mrs. Kings homo. 25i7 Sixth street. On
his return he reported that Krug took an
early breakfast. and told his brother-in-
law he was going out of town and would
not return until night. He had taken the
observation-disclosures with him, aud neither
his bfother-in-law or wife seemed 20 have
any idea Of anything unusual. DIR. Kloe-
Der then went 10 tho Queen City bakery,
on West street. owned by Krug, and there
his bookkesper. Mr.. Stoweil, said Krug
had bsen there. and told him he was going
out OF town until night.
Meantime. on Mr.. Donworth's sugges-
ton, Chief Jackson was sent for and dctec-
tiyes ordered out The chief was also in
strueted 10 telegraph TO every point where
krug could be intercepted.
The finance COMMITTEES visited all the
banks. and the balances 10 the city's credit
were given In every instance except at the
Security savings bank, whore ]. X. Ed
mission, the president, refused 10 give the
Information. Ii was ascertained that
there was So. S9i at the Commercial Ma.
uonal ana much smaller sums a: the
Washington National. National Bank of
commerce. Dexter Horton a Co, PUGET
Sound National. Merchants National and
North End bank. the entire amount nc.
Freghtlng about 100000. In the treasury
safe was found about 81, 500 Ia cash. and
checks. drafts, etc, amounting TO about
$6on.
As there was on September an apnar.
ent balance in the treasury OF Sa,aooO. oct
OF which within $4,000 has been paid on
account OF salaries and wages ard 10
which should be added probably sos re.
csirts, there IS an apparent deficiency al
about slst,0a, As most of the money was
invested in the city's own warrants and
the loans are presumably made on good
security. the probability Is that the CITY
wilt not eventually lose anything. espt-
esaliy as Krug's bondsmen are ail respon.
sihle
When the deficiency had been deter.
mined beyond doubt. a warrant Vas sworn
out by George nonworth before the nrose.
cutting attorney. and placed in the hand,
OF Sheriff Noolery. The work of inves,i
CATION occupied the officials until late m
the afternoon. and the mayors prociamS.
tion WAS then decided upon. Before pro
mitigating IL Mr. Carson was sent "a
Inward q. Graves. president OF the Wash
ington National bank. asking him TO &C.
cert Tire ofaee Of treasurer. lie wanted
untii eveaing 10 decide, and ii was resolved
20 appoint Deputy Comptroller Anarew
Biaksssoae 70 act temporarily. He had
barely qualshed before City Clerk Stone.
man when NJ. Graves acceptance Of the
office WAS received. and be arrived a, The
CITY ball soon after andxoak the oath.
What became Of the money was then the
ohless OF research. No positive iniorma
ten can he obtained. those principally
concerned having been warned that ,hs
ends OF Justice might be defeated hy a dt
vaiguaee Of the facts II Is learned. how.
ever. that Mr.. kFas had been bavsng city
warrants at discount. evidently in antics
patton OF the sale of the bonds, when IA,
warrants would be cashe2 and a eaod
pvos.s realized. He ia understood u hav.
advanced large Sums OF meney as loans q
friends. and 10 spectators and brokers q
buy city scrip AZ . discount. Il
= said that ~ one time n,
must have bad fisS0oo invested
in SCRIP, bat he recently sold about ssa,o