The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-09-21

4
Bagiey. but brought out The additional
tact that the eank had allowed Krur sn-
isress af the rate Of per cent. on the cisy
George J. ssonen.u. city clerk. told the
s.ory 81 ais oeiisstion 70 Krus. Krug had
volunteered 70 take up several notes on
saien aymsnt sas being pressed: they
amounted 20 about $3.50; witness had been
paying on At the rate Of 500 month since
xeornary. hrug deducting tina. amount
rom nis salary each meath.
vi. -. :. kioeber testified thst he was
,Smiiisr With the affairs Of the North End
nan1 ana knew that the city ha1 about
glooo on deposit there. He spoke to Mr..
n1ng soont u who assured him that the
cssy vas secured. Witness first knowl-
sage o. TIE deficiency was gained only on
1as morning OF krug's disappearance Re-
pyins 70 Alderman Carrie, witness said
.nas MS telling what he knew would not
nsse prevented krug's escape.
=. N. Carson was examined as to his
ioan o. sf.soo but his testimony only cen
HTmsa the statement he has already made
Pubic. Carson said ne did not know that
hr1g nad loaned any money to anybody
hrsi gave dus bin to krug. bat
1''ef lev days gave him . note for the
amount tosether with several mortgages.
Inc money was paid by Krug in cash. He
.o'd larson he would get IL for him, and
the ioiiosing day he called 20 Carson, the
w'naoss being opposite. Carson walked
around into krug,s private Office. and
hrug said he had got the money. and
counted IL out Carson asked If IL was
city money, and Krug replied that it was
not.
As TO his own note, he did not consider
that u was very large sum for y man Of
hrug's rsputed means. Judge Greene put
larson under searching examination as
70 mis- powers under the charter. which re-
qnires the city comptroller to exercise
general supervision over the financial
Affairs OF the city. Mr.. Carson did not
consider that he was required to compel
the treasurer TO report his cash. a. the
chafter went on 20 say that he was 10
keep complete set Of books. Ii seemed
TO him that the city charter had especially
delegated 70 the finance committee the
duty OF examining the repositories Of the
city funds.
The provisions Of the charter involved
In the question Of responsibility are to be
found in the declaration of duties Of comp
troiier and those of the finance committee.
Section Of article 0 says: "The city
comp troIler shall exercise general super
vision over the financial affairs of the city.
He shall be required to be constantly
acquainted with the exact condition of the
treasury. He shall keep COM
plete set OF books so that he can
at any time tell the exact condition of the
city finances" Section of article says:
"The finance committee shall have power
20 investigate the transactions and ac-
counts Of all officers having the collection,
custody and disbursement of public money.
1t shall have free access to any
records, books and papers in all public
Offices. It shall be the duty of
such committee as often as once 10 every
six months to examine the official bonds
Of oil city officers and depositoriss Of the
city funds"
n. w. Troence was then placed on the
stand. He had been. he said. an extensive
dealer in city warrants. He had bought
probably s,5, 900 worth. A few were for local
investors. but the great bulk was for East
ern parties. Since Krug went into ONCE
witness had not purchased many, but
had bought few Endorsed by him.
great many warrants had been placed In
boston anu fhhhueiphia
II suspected that Krug was buying war
rants because so often met Thurman In
the treasurer's Office, and especially in
Krug's private Office. knew that Fuhr-
man was paying good prices for warrants:
he explained that he had found q good
market in the East"
"Do you know of any warrants being
offered In New York lately"
II 80 hnk q .r =
but don't know by whom. | was IN
formed by correspondent that there were;
10 must have been a large block or he would
not have mentioned H. have my sus-
picions, but | would not care to express
them. IL was some time ago, probably
last June, and the amount might have
been $4,000. I first learned definitely
about Eve months ago that Krug and
Thurman were dealing in warrants. [
knew that Fuhrman tried to make loan
with the Park bank in New York: did not
know what security Thurman offered. I
heard some warrants were paid out of
order, but do not know"
Mayor Ronald related the circumstances
Of his borrowing 81. 500 from Krug. He
had been told of krug's having money to
lend, and asked krug if IL were so. Krug
said yes, and offered, IL the security Was
good. to loan 81. 500 at per cent. He told
Ronald to have the abstract made. A few
days afterward another conversation took
place in which Krug told Ronald to have
the note and mortgage made out in /. d.
Ross name. Ronald asked Krug If that
was necessary. as he had had one transac-
ton with Ross which was not altogether
satisfactory. Krug said he preferred that
arrangement, as he did not want to appear
In the matter. Ronald then asked IL the
money vas Krug's own. TO which he re-
piled yes" Ronald had applied to
several brokers' before il was mentioned to
him that Krug had money. After eli the
papers were ready, J. c. Whitlock took
them 10 Krug and brought hack from
Dexter Horizons bank note for 81 Loco.
which had been paid. and the balance of
$sss. whitiock told him since this inquiry
that he went 20 Krug. who handed out
bag containing just s., 500
A question of Judge Greene brought
out a statement OF the mayor that he
asked Krug il he were responsible for
certain proposition that had been made
TO him, and il so he did not want Krug's
money. Krug replied that he knew