The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-09-24

Braun had also gone on . noae with A.
bert 0ssho5. bnt considered himself liable
He vas also asked concerning sight draft
BY A. Be.ch. Of St. Louis. He explained
that krug had bought stock in the Braun
Brewing and Mating Company from
Beseh. and although the draft had come
through witness, Krug paid the money
and now owns the stock.
Then the iEquiry a. 20 the warrants be-
gan J. H. Hemer. cigar dealer. was
called and testified that on one occasion
be had cslsed upon Lee Hart. who told
hiFn that be had no money bat be had
some warrants amounting. witness
thought. 70 about f2500. Witness did not
see the warrants, but got the Impression
that they belonged % Hart. Later IN the
day Lee Hart admitted that Hsmer bad
called upon him 70 collect lodge dues.
but denied that be had said anything
about owning warrants. Whas Hart said
be did say was that one couldn't borrow
money on notes, stocks, bonds. warrants
or anything else. and he wasn't sure the
banks would loan money on gold dollars
a. security. adding that he had 800 as
good paper rs ever asked q loan. but could
not get dollar.
examination Of Thomas L. Roberts. a
broker. whose Offices are in the Sullivan
building. near FuhFmsnis Offices. He vas
examined because a story was current
that he had recently offered block of
warrants TO the son Of Amos Brown. who
has an Office in the Dexter Horton build
ing. 1t had been very positively stated
that Mr. Brown had said that Roberts had
offered to sell him 10000 worth OF war
rants on the day Ross left, saying that
the warrants were owned BY q man
who needed the money without de-
lay. Witness was asked whether he
had told A. L. Brown that he had
$4,000 worth Of city warrants for
sale at 30 cents; If he had said that he had
the opportunity of his life TO make q stake
If he could place that quantity of city
warrants within half an hour. or If he
knew of others offering large amounts of
city warrants on or about the time that
krug went away. Roberts replied in the
negative. and asserted that all that had
passed between Brown and himself was in
relation to 81. 100 of school district No.
and $500 Whstcom county warrants
which he had for sale. Witness further
denied that be ever had done any business
for Thurman.
A. L. Brown, the broker In question. also
denied positively that he ever had any
conversation with Roberts about city war
rants. and that on the day referred to il
was Whatcom county warrants that had
been talked OF.
h. w. Price, the broker. was examined
with a view to ascertaining whether.
through his transactions with Thurman,
the missing warrants could be traced. He
testified to having had transactions with
Krug aud Thurman. At one time Krug
was arranging to start a German savings
bank in Seattle. and Thurman introduced
witness to krug. who asked him to take
some stock. Witness agreed TO do so pro-
vided he could arrange TO take enough TO
control. Nothing came OF the proposition.
Witness testified to many transactions
with Thurman. In 1891 he arranged loan
for Thurman in Iowa. putting up warrants
as collateral. In the same year wit
ness purchased of Thurman $4,000
worth of warrants at e5ik cents and sold
$4,000 worth of Thurman at 97J4 cents
and sold those at an advance. At another
time witness procured loan In San Fran
still another time knew of Thurman sell
ing $4,000 worth of warrants TO the Puget
Sound bank. Witness did not know
whether they were sold to Mr.. Furth
direct or not Witness Was asked many
questions as to the transactions between
krug aud Thurman but positively denied
any knowledge of them. He did know of the
loan to DENNY. Mr.. Thurman having said
TO him that Krug had loaned Denny ST.
400. That was all witness knew about il
until he had read OF IL in the papers. 1t
was of interest TO him only because he
had himself arranged loan for d. T.
Denny Of $50. 900 in April, 1891, but was
repaid In 1s92. Witness believed that the
mortgage had been transferred TO the Peo-
Piles Savings bank Mr.. Thurman had
never told him that he was TO have the
use OF city money.
Annie Wilson was called and testified
that she had spoken to her attorney. L. C.
Gilman, about loan Of 81 500, and some
time afterward received the money
through him, but did not know where Il
came from. She signed n note. but there
was no name Of any person that il was 10
he made payable to. The note was produced
and the name OF A. krug had been filled
in as psyee evidently in Krng's own hand
writing. She thought the interest was 2Is
per cent. but did not know.
James I. Blackstone testified that he lad
been asked BY Gilman II he could effect a
loan OF 81 500. He tried a number of peo-
pie aud one day, meeting Krug, asked him
II he had any money 20 loan. Krug re-
piled that he thought be could get il, and
two or three days afterwards said If the
security was good he guessed he would
make the loan himself. Blackstone said il
was his business to make loans, and if he
had known that city money was being
loaned out he could have offered Krug
some loans with pretty good security. but
he inferred from what krug said that that
was ali Krug had to spare.
The finance committee then held q con
ference and decided to discontinue any
further examination of witnesses for the
present. They devoted some time TO con-
slderation of the proposition TO employ an
expert accountant 10 go through Krug's
books, ard instructed Alderman earle 10
inquire further as TO the qualifications of
several persons who had made applica-
ton. The committee adjourned until
Monday morning.
When the finance committee took
charge OF the treasnrer's Office they
counted the cash and made an inventory
of sll the checks. Those checks we're not
presented for payment until yesterday,
when, after making \ copy of each, they
we're turned in 70 the acting treasurer for
deposit The following checks were hon
ored on presentation TO the banks upon
which they were made nAyahIe