The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-09-15


treasury. In explanation, Mr.. Ronald
says that he borrowed the money from
Krug and gave him mortgage, receiving
Krug's private check. The mortgage was
left with l.. ID. Ross, to be recorded in the
event of failure TO repay it at maturity.
Mr. Ronald's statement Is as follows:
Certainly. I am glad you came. am
Just preparing a statement for the public.
I'll give ii TO you now. have never made
nor desire TO make any concealment Of my
transactions with Mr.. krug.
y II did borrow 81 500, under the follow
ing circumstances:
when l went east last spring owed
81, 500, then past due, but the holders OF
the notes did not desire the principal. All
they required was the prompt payment OF
interest. Accordingly l took my money
and went on my trip. When / returned
on the oath day OF June was met by the
holders of my notes with the statement
that on account of the excessive hard
times they would be compelled 10 cali on
me to pay my notes. 1t has been rule OF
my life TO pay my just obligations and
keep my credit good. when possible.
after applying TO two or three loan
agencies for a loan was met by friend
In high position, and in whom the public
have every confidence. who stated TO me,
in the course of conversation. that he
understood Mr.. krug had 5000 of his own
money to loan.
The next time saw Mr.. Krug asked
him about il. He corroborated the state
meni. then told him wanted to bor-
row 81, 800, and friend Of mine wanted
$500 more. He said he could accommo-
date me TO the 81, 800. but that was all he
had, as he had loaned out the balance of
his money and could not accommodate
my friend. He asked me what security
aatnl4 sxfxr h t.NVs trf1N II asoA
| told him that / could pay it in six
months and mentioned the security being
certain town lots in the city, we'll worth at
present prices 81, 800, which was perfectly
satisfactory TO him. He told me to fur
nish him with abstracts OF title, which
promised 10 do the next morning.
Through being excessively busy, failed
to do it. and the next time | met him he
reminded me Of my failure, and told him
that had been too busy, but that / had
abstracts brought down 10 certain date,
that If he would name his iawer would
deliver the abstracts 10 his lawyer, and his
lawyer couid have them brought down TO
date at my expense. He then told me TO
give the abstracts TO /. d. Ross, and make
the note and mortgage payable to him
II said, | am not borrowing money from
Mr. Ross. The last transactionI had with
him was not perfectly satisfactory to me,
and | thought | was borrowing your
money. l did not know | was borrowing
Ross money He said. 1t is my money
all right enough, but it might cause talk If
/ took the mortgage In my name. then
said, 'krug, Is this YOUR private iund or is
it notr He said, Yes
al believed Nr krug. had every con-
fidence in his word. / do not know now
that it was not his private funds. After
the examination of the abstract by Mr..
Ross he brought up to me a note and
N.Y. hU ms al NIB irh
wife and myself executed IN his favor. |
instructed Mr.. Whitlock, the young man
in my Office. TO take the note and mort
gage and deliver them TO l.. ID. Ross and
get the money and pay the notes, a MEM
oranda Of which gave him at the time.
The next | saw OF Mr.. Whitlock was
when he returned with the notes fully
paid. This note and mortgage are not
among the effects found of Mr krug, but
Immediately upon discovering, Tuesday
afternoon, that there was something
wrong. stated TO DIR. K!oeber, president
OF the house of delegates, and 10 Corpora
ton Counsel Donworth. that ! had bor-
rowed 81. 500 from Mr. krug. and the cir
eumstances under which ] got il. and
suggested to Mr. Donworth. the corpora
ton counsel, that he Immediately COM
mence suit to enjoin Mr.. Ross from
assigning or transferring that note and
mortgage. | also stated to the joint
finance committee, now in session, all of
the facts in connection with IL, as | have
outlined above.
IL regret the circumstances in the light
of subsequent developments, as much as
any man possibly can, and | realize that,
politically. being the head OF the admins
tration, | must share the odium. but my
conscieneeis absolutely clear IN the trans
action. never had suspicion that any
thing was wrong until after read the edi-
ria al ~ ;x,f X
LiGEscER, This is the absolute truth. |
had just begun to hatter myself that at
last the administration had settled down
into smooth running. rs every man ap-
peared 10 be doing his whole duty and TO
be making 1t as pleasant Tor every other
ieliow-ofhcer as possible. regret the
turn affairs have taken more than can
possibly express. The whole amount OF
the defalcation would not compensate me
tor the worry and the trouble feel in con-
sequence thereof
II have nov given you the absolute
truth, and must leave il TO the public TO
decide in the light OF my past record In
this community whether j have been
guilty OF dishonesty or not. One thing is
certain, ! am not in such an attitude, so
Tar as my conscience Is concerned, that
can re called off or induced 10 compromise
anything. The public Is entitled TO know
the whole Truth, and everything III coI-
heetion with this matter. and 10 have all
guilty parties punished. Up to date feel
that have done everything in my power
to bring the guilty parties 10 Justice. and
shall only cease active operations with
death or contamination"
IL will he observed that City Clerk Stone
mans name appears in the list of those
who have enjoyed the use of city funds.
Mr.. stoneman's written explanation is as
follows:
81 have only this much TO say on the sub
ieet. ] owed more money due immedi-
ately than | could pay last February. |
mentioned this 10 krng, who offered 20 let
Ire have enough 60 relieve me OF pressing
debts, | gratefully accepted his offer, be
taxing nv ten months note without In
terest wi;h the understanding that ] was
tn pay him back al the rate Of 500
Ter month. This ! have done, and
saoad receive credit for 500 on the
noie Ter $8i9. which has not been given-
mere appear other evidences of indebted
Hess which with the possible exception OF
about SID should also be marked paid,
Mr., hrug having neglected TO destroy
them. Mr.. krug viii snestantiate this
statement IL he returns. There MAS no
secrecy ABOUT either the loans or pay
aients. j have never kuosn uatll this
investigation OF but tSo others beside
myself sho oxei hGus. and believe the
money lent me was hts ONE. Ny debts of
aii descriptions viii BE paid out of mg
salary ny next March. J ara entirely IN
nooeni Of any feeling OF dishonesty in the
matter aha Iay only regret IL THAI | saeuia
have borrowed shs money from kTag an
stead oi some enc else.
Ia explain alton of the transactions Of the
/. III. Griffith Realty ard Ranking Com