St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-11-30
DID K0RTGAkRD DEFAULT?
EK-cITY TREASURER CHARGED WITH
EKREZZLWG CITY fluids.
ARCTANDER his ACCUsER.

The Lawyer Files Objections to
the Claim of City Treasurer
Hangar Against the state
Bank-Says None of the CitY's
Funds Were in the Bank-As-
signee Hahn Denies the Claim.
EX-City Treasurer Krlstian Kortgaard
is now charged with all offenSe more
serious than that for which the grand
jury indicted him. He is accused of
having betrayed his trust while city
treasurer, and of being unable to &C
count for over 100000 of the city's
funds. Lawyer Alexander makes the
charge.
The affair came to light yesterday
when Assignee Hahn, of tine State
bank, refused to allow the claim of City
Treasurer A. Z. Haugan for Sl06,65
Mr.. Hangar claimed that this amount
of the city's funds was in the bank at
the time it suspended. The claim was
disputed by Lawyer Arctander on be-
half of himself and other creditors. In
hiS objections filed with the assignee,
Arctander makes this grave charge, viz.
That the amount (Sl06,655) did not
represent sum due from the State
bank, but was debt due Haugan per-
sonally from Kortgaard. who was the
president of the bank. Mr.. Arctander
also asserts that this amount repre-
sented shortage in Kortgaard's ac-
counts as city treasurer at the expira-
ton Of his term of office, and that the
State bank never received any conSid-
Grafton for the amount in question.
City Treasurer HaugaH will appeal to
the district court from the decision of
the assignee.
Mr.. Arctander said to a GLOBE repre-
sentative yesterday:
"Tbis revelation explains certain
actions on the part of KOrtgaard during
| the last campaign that L could not ac-
count for then. Before election day
| kortgaard eXerted all the influence he
could to elect Haugan and knife Scan
Ian. the Democratic candidate for city
treasurer. He even came to me and
asked me to vote for Hangar. l expect
to prove that secret agreement exist
ed. whereby Haugan, if he should be
elected, would keep a certain amount of
money on deposit in the State bank.
When Koortgard went out of Office last
January he was credited by Haul
gan with having $4,000 of the
city funds on deposit in his
bank. Kortgaard gave Haugan a
check OIL the bank for $4,000. with the
understanding that the money was not
to be Withdrawn within a certain time.
When that check was presented, Kort-
guards account was charged with the
amount, and on the same day it was
credited with $4,000. The difference
between the $4,000 and the Sl5O,OO0
was drawn out by Haugan. Now, |
propose to show that Kortgaard did not
deposit this $4,000 in his bank, but
used the money personally. | do not
say that Mr.. Haugan was cogniZant of
this, but none of this money claimed by
him will be repaid by the bank if the
other creditors can help it,"
MIR. Kortgaard was seen by a GLOBE
representative yesterday afternoon, and
asked what reply he would make to
Arctander's charges. Mr.. Kortgaard
said:
am very much surprised to hear that
| defaulted when city treasurer. When
| transferred the office and city funds to
Mr.. Haugau, all the city money that |
claimed was on deposit in the State
bank was there. [ deny Arctander' S
charges absolutely, and declare that
there was no agreement whatever be-
tween Mr.. Haugan and myself either
before or after his election regarding
the disposition he should make of the
city'S funds"