The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-09-14
THE KRUG SHORTAGE.
Securities and Warrants Found
for Large Sums.
TREASURER srill a FUGITIVE.
Z. ID. Gess. ef tbs Kid COMMITTEES, Gene
60 See Him Over 100000 worth
OF Scrip Found.

Fortunately for the city the defaieation
Of Adoiph KTug. although not less than
estimated yesterday, viii not De so BAD
eventually n IL az first threatened 20 oe.
The finance COMMITTEES Of the COUNCIL,
Aldermen Carrie and Danlton and Delegates
Lyon, Shields and CrIchton. hegsn WORK
early yesterday morning aud went through
ali the papers IN the city treasury In
Tin box wss discovered bundle OF var
rants amounting 70 s5Zstlhsi and another
package brought the amount up TO over
5000. This leaves still about sI2f. coo to
be accounted for. The finance committee
adjourned about 1870. after having aseer-
tanned that there Is . large number OF
mortgages, notes. etc, which Will, u good'
VERY materially reduce the deficiency
I'D to a late hour last night there had
been no news received Of krHg, except
that he had registered in bis own name at
q View Westminster hotel, but when
Deputy Marshal Quiltes arrived krue had
left. lie had been in the room assigned TO
him, but bad not slept there. Sheriff
Woolery left on the morning train with
warrant for his arrest.
rnrnor was current that Mr.. jacob
Fnrth and Mr. Henry Thurman had been
associated with kfug In the purchase OF
warrants. Those gentlemen were invited
20 attend the meeting and promptly ar
rived, the committee being augmented by
THE presence Of Mayor Ronald, George
Doaworth and DR.. ]. ). kloeber. Mayor
Ronald explained that the story current
was that Mr.. Fnrth had agreed 10 accept
nil warrants bought by Krug. and that II
any inquiry were maize as 10 the amount
OF funds on hand Mr. Furtb's bank, the
Puget Sound National, should include
them as cash on deposit subject 10 the city
trcasurer's check. At Mr. Fnrth's re-
quest the newspaper reporters were adj
United TO what had been intended for an
executive session.
Dr. K.oeber said he had been told OF The
arrangement by three persons, the con-
siderstion for the agreement being said TO
be that krug should keep $4,000 cash de-
posit with the bank.
Mr.. Furth replied that the statement
was wholly untrue. He continued;
'.The circumstances under witch krng
and myself had any talk about city
finances was about the time Of Mr.. d. +.
Dennys difficulties. Krug came 10 me
and told me that he had loaned Mr..
Denny some money. He said that certain
banks, mentioning them, were going
after him rough shod. These hanks
claimed that he had no business To de-
posit city money With me. as had been
strong political opponent. lie also said
that his bondsmen were insisting on an
investigation If his accounts and that he
desired TO make good the SO, 900 which he
had loaned Mr.. Denny. lie asked me 10
help him out, aud said that he had some
warrants which he desired to sell.
Il told krug 10 prepare full and COM
- - III r. - ~
actual cash on hand, etc. and that would
then sea what | could do. lie said no
world prepare such statement. but he
did not do 30. Instead, he went TO the
banks ard told them that he had made
arrangements with mo for everything,
and that although those bankers who
were on his bonds might withdraw from
the bonds. yet he would withdraw his de-
posts IL they went OFF bis bonds. and place
the money In my bank. | told him that
he must not do this; that ] was per-
fectly satisfied with the deposit already
had.
IF did not see Krug again until after
City Comptroller Carson's letter He came
TO me on Monday. very much worried.
and again asked me 90 help him out
again asked him 10 prepare a statement of
the actual condition of affairs. lie prom
ised that he would have such n statement
by 2n'ciock of that day tMonday) or by
the time the bank opened in the morning.
He did not prepare such statement and
have not seen krug since"
Mr.. Furth produced three checks signed
BY y. I. Denny in favor of Krug. which
were secured by mortgage amounting to
siI 600, Mr.. krug asked Mr.. FGrth TO
keep them in trust
Replying to Mr. Donworth, Mr.. Furth
emphatically denied that krug ever de.
posted any warrants with the bank or
that he had ever bought any for or sold
any 10 krug He denied positively that
there was any ground for the statement
that krug had offered TO or was asked to
keen sao,W0 in the bank. The largest
nmouut he ever had at the Puget Sound
National was $is.o00. on March last. He
had NO idea where any OF the proceeds Of
the Investments had gone. lie had never
bought any Warrants Of Thurman.
After few more questions Mr.. Furth
was excused.
n Ii. Gilman. one Of Krug's hondsmen
appeared, aud. In reply TO questions, SAID .
II am told that NJ. Thurman has drawn
out of the banks Sitsb con ON checks slsnad
BY Treasurer krug, | have seen Mr..
fahvntan. have advised him 10 tell ali
he knows regarding this unfortunate
appointment Tor him 20 talk 10 the com.
mittee. or % the mayor aud Mr.. Don.
worth
Mr.. Thurman soon after arrived. and
the reporters being excluded his test.
mony Was taken down IN shorthand Mr..
nonaorth afterwards stated that II had
been agreed 10 dlvuige what Mr. Fuhr-
man had related The agreement vas
made ut Fubrman'S request
IL Is stated that Henry Fuhrman's tssti.
moBy Vas To she effect that he had
bought warrants for Krus 10 the
amount Of ss0o0 month. the
uatac beginning ~ far hack
n the SECOND month 81 The nr.s.nt
administration. one month :he smouat
inVolvSd an the trade vas so great tbs,
the city treasurer had 20 borFos Sla uaD Of
fghrman 70 meet the interest on bonds
Later. Fuhrman became pressed sor
money and borrowed SIS. coo 81 krag. riv-
ing him as security slS.Coo in city usr.
ranss
The committee then appointed nepasv
Comptroller Blakistone 70 act As eie.S
and proceeded 10 make an inventory IS al
che papers foued in the city treasury
They found large number OF pArsiAl pay
ments on street Grades securely snyslepsg
snd Intact The members wcre engaged
aatd midnight examining papers and
making liss Of them
Meantime Corporation Counsel Don
wossa prepared charges against Krux. and
LAID an information before 1ussiees,a.4
Ne. "a follows.
Before William Caldwell. Justice af ia