The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-09-20
between Erug and Ross, what interest
eould Ross have Ira his departure 2"

between Krug and Ross, what interest
could BOSS have In his departure7"
II cannot state"
as Ross under any liability 80 ron or to
your company ?" asked Judge Greene
Griffith reflected for some tire. and then
leaning forward had q long consultation
With Judge Greene and Aldermen Danifon
and Carrie. At its close Judge Greene
said:
II will not press the question"
c. b. Bagley. vice president OF the North
End bank, testified that from February !.
Issz. until December 1. 1885,. he was not
connected With tho bank except -
director whsn he took charge he found
deposit Of city funds, but the banks at
fairs we're not in very good shape. krug
was consulted AZ various times There are
txo deposits there now and one has been
Withdrawn He did not know whether
any commission had been paid on city
deposits. but toe books Of the bank were
at the disposal Of the city. No commission
had been paid By the bank since Bagisy
took charge.
Bagley explained abous the presence OF
q note by Thomas Mercer, which he said
had been given IS security for Bagleys
performances OF his duties. and IL was left
with krug because he vas the heaviest
depositor The other notes were deposited
with Krug TO bind the bank. 50 as 70 Sc
cure Krug against any loss by the deposit
Of the city funds One OF these was made
By ID. f. Ward aud wife: there we're also
three, each for $3.50. signed by Fred
Ward, ID. B. Ward and w. r. Ballard;
one for 81, 500 and one for 5000. signed by
Bixby. Bagley was asked Why the notes
were made. He replied that they were
not originally for the North End bank,
bat as the question was one which affected
other litigation and in no way concerned
the Krug matter. he hoped he might not
be called upon 10 say more. The incidents
were anterior 10 Krug becoming treasurer
and Bagsey had transferred them, beiiey-
ing he had the power aud right.
Ibid your bank pay any commission TO
Krug for deposlts7p
Il am fencing that question. Judge;
confess 1t. will submit the books and
you can draw your own conclusions"
The balance in the bank was few dol
city or running on boat, the Princess
Angelina.
ii. W. Wheeler, of the Commercial Ma
tionai bank. was also before the commit
tee. Mr.. Krug kept on deposit with his
bank anywhere from Sd, 900 to so. 900. He
had known Krug since 1855. when wit
ness was in charge of the North Seattle
bank. and krug ran personal account
there. Later, when Mr. wheeler>N orga-
nized the Commercial National bank. Krug
made deposits with him. As city treasurer
he has always made deposits with the
Commercial National. I'm exchanging
condolences with several other bankers"
said Mr.. Wheeler. I'VE were unable TO ac-
count for all the money supposed to be on
deposit as city funds. Later, Mr.. Latimcr,
Of Dexter Horton a. Co., told me that he
understood Krug had been buying war
rants and also loaning money. went to
kFug, called him into his private Office and
told hin, knew of his recent actions. He
then confessed TO me that he had loaned
ST.. 800 to ID. r. Denny and also purchased
$i65.000 worth Of warrants. He stated,
however, that the money was safe.
The warrants were on deposit
with the Puget Sound National bank. and
Mr.. Furth. the manager. had agreed to
give him credit for tho same Krug told
me he had the power 10 draw on the bank
for the amount, although it was UNDER
stood that he should not do so unless COM
PEELED to. had the utmost confidence in
Mr.. Krug's word. and did not question
the yesacity OF his statement. Krugalso
told me that it was necessary for him to
keep certain sum on deposit with the
Puget Sound National bank. had not
the slightest doubt Of Mr.. Krug's honesty
and integrity. He calculated that he
would come out all right. but l told him
that buying warrants and loaning city
money was bad business"
The committee adjourned until this
morning. when the books of the North
End bank will be examined.
The grand jury demanded by public
opinion has been selected. and the second
grand inquisition held in this county
since Washington became q state will
meet at the library of the courthouse on
Tuesday. September IS. The first grand
jury was called in the fall of 1891 to inquire
into the circumstances following the strike
Of miners when colored men were imported
into Franklin and Neweastle. The panel
selected yesterday is as follows:
John Leck. Seattle; Charles Wilson,
~. j.
Johnson. A. T. Vandeyanter, Kent: z. T.
Clark, Black River Junction; George T.
Frye, Seattle; Thomas Alvord. Pialchie:
Charles Beekman, Seattle; Ed l.. Lindsey.
Seattle: T.. q. Lochridge, Slaughter; Mel.
son McCaiium. Slaughter; James Crow.
Kent; Moses Loree. Avoudale; Humphrey
Jones, George Stevenson. C. II. Shaw. See
attic.
Assistant Prosecuting Attorney Nc
Bride early IN the morniag ra,s,as,aa
Judge Hapes to summon the grand Jury.
The Judge made no immediate decision.
but told Mr. Mcbride that he would take
the matter under adyisement for time
The trial of the Braekle murder case was
then continued, occupying the courts at
tention until the noon recess. Then Judge
Humes went 10 Judge Lansley's cham.
hers. Judge Osborn was summoned and a
long conference between the three Judges
Was had. At length Judge Humes re-
turned 20 his court room and notified Mr.
Mcbride that the grand Jury would be
called. An order 10 tina, effect was Gwen
10 Clerk Gordon. who closeled himself AZ
once With Sheriff Woolery' and Au1,.or
Twtcheli for the parpose of consulting on
the steps 20 be taken. The officials were
not sure what TO do. The Law REQUIRES the
county commissioners TO make out Jury
list in February OF each year, bur il had
not been done this year. shouid they use
the petit, jury list. containing ten names.
and then have specisl venire ordered. or
should they use the grand jury list of 1891
IL was hnally decided 70 do the latter.
Clerk Gordon was blIndfolded aud the
drawing was begun. the names OF the old
list remaining .undrawu hav;nq, 49,.