The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-09-22

OPERATIONS u dzai1nE ~ ceAtste c1tf y At
rants and loaning money 20 mis- friends.
for the following dispatch tells Of business
farther afeid:
''PoKT ANGLES Sept 2f-ls2eciaI. lit
il alleged here that Adosph krag and
Henry FHhysnan we're heavy buyers o.
Ciaiiam county and Port Angeles city
warrants during the past year MANY To-
cal buyers resold 70 Fuhrnan or krug.
and i: - stated that $4,000 Of them. re-
Gently advertised for sale under con-
ceaied lame sn the SEATTLE papers. and
which were subsequently sold al ridicu-
lousy low price. were warrants hesd Dy
krug and Fnhrman. and we're sold for the
purpose OF .unlosding' after exposure OF
krug and his dOings"
One of the principal borrowers from
Krug will probably be arrested today and
another warrant sent on to St. Paul on
which to hold Krug-
The committee appointed by the citizens
At the meeting on Monday night called
upon the finance committee yesterday
and discussed with IL the scope OF the
present inquiry. Some OF the citizens
said the investigation had the appearance
OF a search for scapegoat and inslmated
that the public would be better satisfied
to have the Enquiry left TO the grand jury.
After il had gone. the finance committee
practically decided 20 examine the re-
naming witnesses today and confine their
labors TO an inquiry into the value Of the
checks and securities left by krug, with
view TO sscertaining what the actual de-
fieieney is likely 10 be. This will pave the
way for suit against Kings hondsmen.
The committee devoted yesterday morn
ing TO the examination of witnesses and IN
the afternoon made copies OF ali checks
found in the vaults and which are supposed
20 have been given with the understanding
that they were not 10 be presented. De-
mand for payment OF these checks will be
made today.
The first witness was Fred f. Sander,
who was shown four checks dated respec-
tively February = (2) March 20 and April
l, 1888 for the sum Of $3.50, s.. ISIS. $i8207
and $685. "a. all signed by Sander per l.. d.
Bruins, made payable 20 A. krug. either
personally or as city treasurer. and one to
the city treasurer only. They were given
for taxes, aud two of them had been
signed in blank TO be filed in by the treas
uFer with the amount due. Witness said
the checks were payable when they
were given and are still payable.
Witness said he had done a bank
ing business in small way for
the last few years. Replying TO further
questions. he was not sure whether checks
on his bank" went through the clearing
house or not, but he rather thought that
some did. Sander said further that
Krug heard him say he needed some
money. and krug offered to let him have
IL. Witness remarked that he always
needed money and could always use it.
After some con versation krug said he
could spare IS 500, and would leave IL with
Sander for four or i've months. possibly
longer. krug required that witness
should get his wife to join him in de-
mand note. Nobody else was in the
office when the money was handed over.
About May y Krug let witness have 81, 500
on about the same conditions. Witness
considered krug TO be worth about $780,
600, but understood that Krug also ham
died money for his brother-in-law, Ritter
hoff.
Andrew Blackstone, the deputy comp
troller. explained the system by which he
checked the accounts in the several funds
He had not checked the treasurcr's books
themsel Ives. and in fact had never been be-
hind the counter in the lrcasurer's office.
He never had occasion to make any in
auiry as TO the amount of cash in the
banks; did not believe that Carson had
ever done so. Replying to many gues-
tons, Blackstone denied that he ever knew
anything about Carson borrowing from
Krug until after the flight, when Mr.. Car
son told him about il. Witness had never
heard any conversations by telephone or
otherwise between Carson and Krug,
either about the loan or about the comp
troller's powers; he had never heard Car
son express a specific opinion as TO his
duty under the city charter.
Fred krschner deposed to the borrow
ing of money by the Bay View Brewery
Company. The loan was for 5000. for
which note was given. signed by Andrew
Heinrich aud witness He also explained
the loan made by krug to the Seattle
Brewing and Mating Company. which
loan was for $500. but on which s.. 500
had been paid. the vouchers being pro-
dnced by witness He stated that no con-
versation had ever been had with Krug as
10 whom the money belonged TO, ana did
not know that it was city money.
Jesse +, Cochrane. of the board of public
works. was next called and admitted hav.
ing borrowed several amounts from krug,
the two due bills found being for $25 each,
He had simply asked krug for a loan at
odd times, and always received II. He said
the money had been given to him in the
treasurers office every time. according to
his recollection. but did not know whether
u vas taken from the ,iil or from krug's
pocket. He had been in the habit of bor-
rowing hack and forth from krug for
years, and never thought anything much
of IL. rs krus and he were friends.
Andrew Heinrich was sworn and stated
that he IS president of the Seattle Brewing
and Mating Company: that he had bor-
rowed s.. Gao from krug for the use OF the
company. Witness said that the reason
he had gone TO krug was because Krug
was y stakeholder in the company and
seemed TO be in easy circumstances. so
when he met hun on the street one day he
asked him il he were able 10 loan
an answer in the Affirmative. The
money was hrough: TO the company s
Office by hrug on May q. IStS, and he re-
eeived note signed hy witness aud Mr..
Sweeney. Witness asked TO he allowed 10
state that he had no special reason for go
ing 20 Mr.. krug for this loan. as he could
have procured IL from a number OF other
places. bat Il was offered SO freely by Krur
when he was spoken TO about IL BY him.
that he thought il was as well as going an '
further. Witness stated that he had no,
the slightest idea that 10 vas city money
that he vas borrowing as he d al no reason
10 even suspect such = thing, rs Mr.. KruR
Was supposed 10 DC possessed Of quite an
amount of money. and was also making