The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-09-20
TO BRING KRUG BACK.
Every Precaution Being Taken
Against His Escape.
4 MOVE roR HAsEas CORPUS.
Eeeussstfon Papers Prepsrsd-A Grsnd
Jury csiied-Csrson VIII Set BE
suspended--Citizszs' Csmmitseea

planaiug to delay II not thsart Afus re-
turn to Seattle. which seems 70 be shared
by Mayor Ronald, may or may not oe
well founded; but 30 guard against any
attempt extreme precautions serc taken
YESTERDAY. In order also 70 prevent col
Iusi0n after his arrival . number Of Wit
nesse. will he examined under oath today
by the 6nancs committee. IL xiH Be ~
least week yet before Krug arrives
The most pathetic incident Of the entire
Krug defaicaslon, with It's attendant scan
dals. was the appearance OF the pioneer.
ID. 7. Denny. before the finance commit
tee yesterday 20 testify ~ 20 his borrowing
si7.b00 from the treasurer. He was evil
IDENTIFY worried. bat was Straightforward
and clear in his replies. Hon. Roger >.
Greene asked very many questions as to
the circumstances connected with the
loan. Mr.. Denny said be was very much
pressed for money and Thurman told him
Krug had money 70 loan. Denny asked
Krug IL be could let him have 8. COZ. and
be replied that he could. Later he got
another 5000. Mr.. Denny said he did
not know then that the money was city
money, nor for long aitersard did he sus-
pect IL. lie had given ample security for
the money. He had no reason 70 doubt
that Krug was in such circumstances rs
20 be abs 10 make such loan. Mr.. Denny
was then asked as to the relations Of krug
with the North End bank and the notes
gisen 70 securs the deposit, but there vas
nothing new in the testimony.
II understand, y said Mr.. Denny, that
q warrant Is to be issued for my arrest. IL
IL Is 90, hope it will be done az once. The
suspense Is worse than the reality"
The committee told him IL bad no BUSH
ness with, issuing warrants and knew
nothing whatever Of IL.
John b. Denny, son OF ID. 7. Denny, ex-
piained that his father had borrowed two
sums Of 5000 each and he had borrowed
s7,aO0 from Krug. AZ FIRST notes we're
given. but later his father proposed giving
real estate ss security. Denny did not
suspect Krug OF using city money until
few days before his flight Krug had tho
reputation Of being an honest, frugal Ger
man who had quietly saved up and by
judicious investments had made q good.
snug sum, which he pat out on short
loans. He said further:
my transactions with Mr.. Krug were
entirely Of a private nature. | received
the money from him ~ a private indiyid-
nal and gave him private note privately.
did not know be was using city money.
made the loan OF him and made the loan
of him personally. | had no knowledge
or reason 20 suspect that II was other than
his own money. for knew he had money
OF his own and money he had borrowed.
never talked with him as to whether IL
was his money or the city's money be-
cause l never questioned that 1t was his
own"
Willis L. Ames, the treasurer whom
Krug succeeded, was called. He held
once up to March q. 1892. Witness
turned over to Krug all OF the money and
property belonging TO the city, giving also
check for 81. 334 TO cover a discrepancy
between the witness books and the comp
troIier's books. but with the understand
ing that the check was not 10 be cashed II
credits could be found to balance the
amount Of the discrepancy. Some credits
were found, one OF 500. and enough To
make up about $500. but he had not been
able to prove any except the $500
Some stubs were found torn up which
amounted TO part of the discrepancy.
Ames did not know that Krug had been
purchasing city warrants, but suspected
that he had been; he also suspected that
more than likely he had been using city
money In those purchases. His suspic-
Ions were founded on conversations with
Mr.. Wheeler. OF the Commercial National
hank, and with Mr. fsackus. OF the Wash
inTton National hank.
The fund for which the check was given
20 make good was q special fund relating
90 taxes collected on what was known as
the Yesler and Rinehart corners. Taxes
were collected for time and thea II was
declared Illegal aad the treasurer was di.
rected TO pay back the amount collected.
This was done until all of the fund was
paid back. but the eomptroller,s books
showed that there should have been more
there The check was still good At the
hank II presented.
l.. II. Griffith was then called and sub
jected TO a very extended examination.
Hs caused considerable surprise by aban.
doning hrs decided position as 20 one
5000, given in the name of the Griffith
Realty and Banking Company. Al his
former examination. while Ross was away.
Griffith gave the very decided impression
that Ross bad forged the company's sigma
tnre, he having no authority 20 sign any
note for the company. lie was plied with
questions by Judge Greene 70 elicit some
such expression. bat he carefully syn.ted
IL. He admitted the liability of the com.
pany for sisW0 The main reason tcr
continuing Grtifith's examination WAS 10
give him an opportunity 20 ascertain
positively whether the note was forgery
OF not.
The disputed note is dated August -
is92. and the witness at some length "a.
lated that he was at thai time engaged
with the Tacoma street railways. and
spent most OF his time in thai city. Griffith
could net be sure be was absent from
Seattle on August o. lie might. how
ever, have signed the note IN blank. hut
hardly thought ~, Tie books OF the firm
showed no record OF the note
Replying - questions by Alderrna an
Carrie. witness said he never had any buxs.
ness directly with krag. ReSs attended
90 all transactions With him. Ross del;v-
cred the 81, ooo note. The ARA had dons
some banking business, but witness wss
always opposed 20 it because il dad not
paw.
long whispered conversation tosk
place between witness aud Chairman
Daalton, bat IL did not seem TO end salts.
fAeicrily, and the examination was con.
tinued-
Judge Greene again pressed GEiilth as 10
his whereabouts on the day the 5000 note
was drawn. bat without success. MAav
questions were pus with view 70 showing
whether Ross had authority 10 sign notes.
but the answers dia not result in any POS.
ave conclusion. Witness gave an iayarl-
able denial TO questions as to his kaosi-
edge OF Ross connection With kraS. or