The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-09-22
Grave Charges of Fraud Against
Idaho's Governor.
wHATcoM soooLERs GIVE BAIL
How Tacoma Is Swindled i'm the Pub
lication of City Notices.
Councilman ~ Spokane Likely to
Fail-Ex-Cashter Dasinserre, of Pay-
aiiap. Pleads Guilty TO Emberziement

CoIrAx, Sent. 2L-ISpecial. Benjamin
Burgunder. receiver OF the Mcconnell
McGaise CompAny's Pullman store, has
hsed suit In the superior court here
which alleges some pretty crooked trans
actions by the members OF the defunet
tirm, chief among whom is Gov. McCon-
nell. OF Idaho. On August 2. Mcconnell,
Chambers 4 Co. obtained decree of in
solvency. but prior to this decree. the COM
plant alleges. the firm made many
fraundient transfers of property. with the
intention of cheating Portland aud San
Francisco creditors. who held claims ag-
gregating $4,000. The allegation further
charges that long prior TO the formation
OF the corporation and during all
the time mentioned in the CON-
plant, w. J. Mcconnell, w. NJ.
Chambers and W V. Windus were
partners under the irm name of McCon-
nell. Chambers & windus, and prior to
April l, is92. were engaged in a general
merchandise and grain business; that on
the date named each member of that firm
was largely in debt and was insolvent.
and each of its members knew of the
others insolvency It is further alleged
that Mcdonnell. Chambers & Windus then
creditors by forming a corporation under
the name of Mcdonnell, Chambers
4 Co.. making themselves officers,
with salaries of sf75 for Chambers
as president, $50 for Mcconnell
as vice president and $50 for windus as
secretary; also, that on April l, 1892. the
corporation bought of the firm of Nc
Connell, Chambers & Mindus its stock of
1I,an fxr
it, In the payment of that purchase price
the partners, officers and trustees had the
capital stock of the corporation, 500, COO
paid up, issued to them, aud took notes
for the other $4,000, while in reality the
stock of merchandise was not worth
aIy more than 100000. All this
was done in order TO better ex-
ecute the conspiracy. The corporation
paid the So. 600 in notes from its assets
prior to last January. 1t is charged tina.
large sums of money were appropriated
and diverted from the funds of the cor
poration. and that by reason OF such
withdrawal the corporation was rendered
insolvent. Windus is accused OF making
fraudulent statements of the assets and
liabilities of the firm 60 creditors, thereby
securing extensions of time during which
fssrsfser p1rcfrsses were mssie from wholc-
salers.
When the Portland aud San Francisco
creditors. representing combined indebt-
edness OF $50. 600. began to close in on the
corporation there were numerous transfers
Of the property of the corporation in Whit
man county. When T. l.. Sabin secured
judgment for $1,000 and the sheriff went
out to levy on the property of the corpora
tion he was unable to lind any property in
Whitman county on which to levy. The
transfers made just prior 10 these actions
are asked to be set aside. These transfers
were made TO the First National bank of
Pullman. Pullman state bank. Yer
mont Loan and Trust Company, John
J. Staley, l.. C. Siaey. l.. Staley,
r. n. Gilbert, A. r. Gilbert, r. NJ. Sher-
man, j. w. Corbett. Samuel Chambers,
Harry Chambers, L. Williams, Mrs. NJ. s.
stockwell and the First National bank of
Moscow. The stock Of merchandise by
the pretended sale was made over TO
Browne 4 Mcguire, of Moscow. The
plaintiff demands that he be authorized 20
reduce the notes, bills receivable and other
property of the corporation to money.
that he may take account of all the In
debtedness of the defendants or parties TO
whom transfers were made, and as money
is realized make pro rata payment to sil
proper creditors until the money and
property of the corporation are exhausted.