Arizona republican., 1893-12-15

under which the 81 900 loan
from Mrs. Ohnick was negotiated and
the subsequent incident of the with
drawal of the So, 800 of the Light and
Power company's funds from the bank
by Mr.. Hitler and the substitution of
his note.
The closing of the report indicates an
impression in Mr.. Killers mind that
his management of affairs would breed
dissa tlsfaction:
l have aimed to do the best for all conce rned
but combination of circumstances has seem
ingly worked against me aud do not expect to
escape criticism but all that have had to con-
tend with is known only to myself.
Mr.. Hall, who is resident of Phila-
delphia, has charge of the extensive
investments of Mallory west OF the
Rocky mountains, was seen yesterday
by REPUBLICAN reporter and asked as
to the character of the disclosures al
ready made. Said he, 1--WE know little
yet except what we have obtained from
Killers own statement; by that
he is shown to be guilty either
of embezzlement or malfeasance
in Office. He distracted, he SAYS,
$500 of the funds of the com
pany and loaned it to himself. He had
no right to do either. If, as he says,
he feared the bank was unsafe, as man
ager of the light and power company,
he might have removed the money to
another bank, but he violated the laws
by loaning the money to himself or any
one else, since the Phoenix light and
power company is not money lending
institution and could not engage in
that business under its articles of in
corporation.
beside, what has become of the
money, if, in fact, such deposit as
Mr.. Hitler describes, existed at the
bank at the time he said 1t did? He
represents that the need of the money
to pay for machinery was imminent, for
which reason, he said, he thought it
would be better that the money should
be in his own hands rather than in the
possession OF broken bank, which,
though solvent, could only make good
the deposit after slow legal process.
1t does not appear that the application
of the money was made to
the purpose mentioned by Mr..
Hitler. He also says that his
action was taken with the properly
authorized consent of the directors of
the company. How could such con-
sent have been given when the only
directors present were Hitler himself,
and Judge Alexander?
Zone thing upon which 1 wish to
speak particularly is Mr.. Killers asser-
ton that the action commenced against
him is of the nature of a persecution,
which he attempts to show by the fact
the arrest was made at night. | have
no wish to prosecute him. We have
been swindled out of sum of money
and we are determined to find out just
how it was done if the information
costs every cent we have invested in
Arizona. If the money has been lost in
the regular course Of business we
will not murmur but we will not per-
NIT cent to be stolen from US without
punishment to the thief.
"Mr. Hitler could have been arrested
a week ago as well as last night; he
need not have been arrested for week
hence but it was rumored Yesterday
that he was preparing to leave town
and we had reason to believe that he
had gathered together sum of money
being the current receipts of the com
pany and we feared that he did not in
tend to remain and face the exposure
which he knew must follow"
Concerning the Ohnick loan of $4,000
negotiated on July "a, Mr.. Hall said
We expect to show crookedness there
In the first place Mr.. Hitler had at no
proper meeting of the directors been
authorized to effect such loan.
81 do not believe that any money
changed hands or actually figured in
either of these two transactions, that ia
the withdrawal of the $500 or the
Ohnick loan. Mrs. Ohnick had on de-
posit in the Hartford bank $500. The
$4,000 borrowed from her was OF course
transferred to the light and power
company's deposit. She was given the
company's note and as collateral Sec
urity the unsold $4,000 bonds of the
company. Both, Mrs. Ohnick's deposit
and that of the light and power com.
pany, may have been equally fictitious
but this can be ascertained only after
an expert examination of the books Of
both the bank and light and power
company.
''The affairs of this company have
been extravagantly and negligently
conducted. The machinery has been
improperly cared for and one of the first
things observed when I came here in
November was that the engine and boil.
of the plant was exposed to the wealth
er. The same negligence prevails in all
departments of the system. Salaries
and the expenses of running are extrav-
agantly high. The monthly salary list
as shown by Mr.. Killers report is $50
In Tucson which has plant of similar
capacity the list is $3.50"
Mr.. HALLS legal Investigation is being
conducted hy Massrs Kihhau a. Israal