The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-09-15

1t that time we were mesnpeIs oi tHc
| clearing house and were even DESTROYS or
| the account. Shortly afterwards, owing
| 10 the decrease Of business and the ex-
pense we decided to withdraw from the
| clearing house and pay of or convert all
deposits. Mr.. krug then had 1000 Of
| the city's funds on deposit with us and We
offered 10 pay 1t off. but he said 1t
might as well remain there. so we
| gave him note for the amount
| secured by ample collateral The coli
| lateral consisted of stock representing one
| fifth interest in the Fremont Milling Com
| pany, which is worth. about 500 a shsrc.
! book value. the company having $21, 900
capital stock and $75. goo undivided profits,
and its total assets being SIPS. 90: ninety
shares in the Seattle National Bank Build
| ing Company, which was worth par At that
| time. and 80 shares in the Blaine Electric
Light and Power Company, which cost US
! SIS 600 and 10 now worth 5000 TO $S,0 600.
Ii was understood that Mr.. krug Was &C
liberty to raw this money at any time. of
course giving US a few days notice. We
never paid him any interest on the money
and he never asked for any. Mr.. krug
also had a private open account with Us,
which now amounts TO SfI7.45. l cannot
find any record on our books of a 5000
note | will go before the finance COM
mittee with our accounts tomorrow and
tell all about our relations with Mr.. krug.
D. III. Gilman's name appears in the list
as the maker of one of the unpaid checks.
He writes the following explanation:
As my name appears as the maker of n
check among the securities in the city
treasury | desire to say that never Dor
rowed so much as one penny from Mr..
Krug or any other public official in my
life. The check was left by me with the
city treasurer signed in blank for the pay
ment of city taxes on my property.
amounting TO 500 parcels. Owing to in
ability TO realize on certain securities |
was obliged TO let my taxes go delinquent.
preferring also to pay the penalty
and interest to the city rather than TO
high rate money loaners. The property
was advertised for sale, and just before
August l | called at the city treasurer's
office and asked Mr.. Krug if it was not
possible for the sale TO be postponed a
month or two, as ii would be impossible
for people to raise money in the prevailing
hard times. He said it could be only
postponed from day to day, but that if
make out the receipts and hold
them, and asked me to leave
check signed in blank and
when the receipts were made M he
would fill il in for the amount. / met
him on the street Monday and he told me
the receipts We're lying in the Office wait
ing for me, and | replied that L was closing
a matter that would enable me TO come up
and get them this week. | did not know
until this week what the total amount
was and | have never seen the check
since | left it signed in blank. The
amount. sa.205.5i, includes interest, pen
atty and advertising, which increases the
total by one-third. This is only small
item in the aggregate that hard times"
have cost me. ID. III. GILMAN"
c. B. Bagley. manager. of the North End
bank. makes this statement concerning
the notes Of w. r. Ballard, D. B. Ward,
Fred Ward and J. w. Bixby given to
Treasurer krug by the bank:
These notes were stockholders notes,
and were among the assets of the North
End bank before Mr. Krug was elected
city treasurer. They were placed by me,
as manager of the bank, with Mr.. Krug as
collateral security for the city money he
had deposited with the bank. and not for
the purpose of getting more deposits.
Other notes were deposited with one of the
banks for like purpose. Not one of the
individual makers of the notes received
penny of the money. and the notes, as
have before stated, were made as stock
holders notes long before they were turned
over to Mr.. krug as collateral.
Capt. w. r. Ballard makes a statement
similar in tenor