The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-04-05

w check to Thurman, nor Of the other
enscks given 20 Ruhrmau on which the
latter paid interest.
va concentration witness testified
tnss early IN 1892 some Of the city funds
nao been expended without warrants
having been issued. In emergencies. on
requisitions from the board OF pubic
sor.s without waiting 20 put them
.n.ougn TIE auditing committee. Bus
tns practice vas stopped during the sum
msf o. ls5,. de also admitted that Mayor
Ronald. Comptroller Carson and other
oiacsais got money from the treasury with
Out warrants being issued and returned,
" their simply putsIng their due bills ia
the cash drawer.
The objection Of the defense to the intro
ouction Of the charter in evidences Wa
overru.ed.
y. n. Lasirner. manager Of the Dexter
Horton d Co. bank, testified 10 the pay.
ment BY his bank Of the - oo0 check given
by krug 70 Thurman on which the latter
paid interest
On cross-examination witness EXPLAINED
the difference between . general deposit
and special deposit. and testified that
krug's deposit was . general one; that
has bank received New York exchange for
large amounts from the Washington Ma
tionaI Bank.
With the reading Of the checks to tbs
jury the state rested its case and Attorneys
r. Q. Hughes, John b. Allen and Maurice
McMIcken asked and obtained q short re-
Cess for consultation. After few minutes
the defendant and bis thres counsel came
In and Mr.. Hughes addressed the Jury.
lie said that there was . great differences
between the charge against Krug aad
that against Thurman. While both were
indicted together. the testimony against
krug - an officer has nothing to do with
Thurman. except - m incident. Abont
1850 Thurman came to Seattle from FIRE.
mont. Neo.. and engaged In real estate and
brokerage business. He continued:
''At that time and subsequent thereto
the funds OF the city of Seattle were in
such shape that its warrants were upon
the market and Thurman bought and sold
warrants. Near the close OF the year 1891,
being engaged In that business. he was
called upon by the then acting mayor,
Hall, and other Of the officials of the city
TO assist them In the emergency with
OF tho funds in the salary fund being az
hausted. TO raise money for the purpose of
paying the salary roll. IL was claimed by
some that Mr. Hall ~ the president
of the house of delegates was the
acting mayor under the charter and
his claim Was Questioned by others.
Under the charter warrants had to b
issued by the mayor and tho comptroller
and the question arose as to whether those
warrants were legal. At this juncture Mr.
Furhmsn was solicited by Mayor Hall and
some other ofhcsrs and members of the
finance committee to assist them In raising
the money By taking the warrants in order
TO realize sufficient amount in the city
treasury TO enable them to pay the salary
roll. At this time the salary fund had
been depleted by about SITS, 600 on account
OF the water fund. bonds for which were to
be issued and the amount restored into the
salary fund. ont OF which amount when so
restored IL was expected that the warrants
which he was induced to take would be paid.
Mr.. Furhmnn strained all his resources ana
took those warrants and disposed of them
to others with his endorsement and GUAR
antee upon them letting them have them
At exactly the same sum for which he had
received them and without any margin of
profit TO himself and simply as an accom-
mediation to the city aud with the expec-
tation that, when tho bonds should be
hoated, the money would be restored to
the salary fund and they would be paid.
Some Of those to whom he thus trans
ferfed those warrants will be hero as wit
nesses for the defense. The same thing
occurred again In the same month with
respect TO raising funds necessary to pay
the interest on the bonds. Mr.. Thurman
placed those warrants as collateral in
Omaha, San Francisco and other places,
exhaustin2 all his power and credit in
order to get those warrants csshed, paying
the highest price and establishing q mar
kct for those warrants AZ figure higher
than was being paid by others and taking
them when no one else would take them.
"fhs election came on and with that
election came . new tide In tho affairs Of
the city. tide which has absted at last.
fortunately. The bonds were sold. but the
&iT5 600 which Was taken out of the salary
fund and placed in the water fund, was not
restored TO the salary fund because of the
adverse opinion Of the corporation coun-
sci.
Then Mr.. Thurman requested the pay
ment OF his warrants, but was informed
that the money was not In the salary fund.
although several hundred thousand dollars
of the money of the city was lying here in
the banks, tied up on q technicaitty. being
used by the banks. while the city Itself had
no use of that money and Was paying In
tere.t upon the bonds at per cent. Mr..
Thurman Was informed that the warrants
couid not be redeemed by reason Of this
technicaiity in respect to the Is
operate 10 prevent tho proceeds of
the bonds being restored to the
the salary fund. He thereupon ex-
planned the situation me was placed In by
reason of the acts Of those parties-Mr.
Hall and others--aii of which was no
doubt laudabie In their real for the inter
eats of the city, and which was equally
iaudable on the part of Mr.. Thurman.
Mr.. krug realizing that this money was
living here and had been placed by him in
the bank and realizing that those banks
were having the use Of that money by the
simple operation Of placing him an the
position of the banks debtor. and that
that money was bringing little or no in
terest, said TO Mr.. Thurman that, as he
was q perfectly responsible mau. equally
responsible with some of those banks
and venture TO say in the light OF this
testimony, shown To have been more
responsible and TO have greater amount
OF capital than the Washington National
bank, the chief bank of the ~ Indicate or
com bins at any OF those time: that. as he
was . hondsman aud . responsible man, he
would let Mr.. Furhmnn have some money
as he could not redeem those warrants,
taking and holding the warrants IS Sc
curity in the meantime. And 80 you hear
OF this 81 900 and $1,000 transaction. Thus
checks were issued upon those banks and
the credit of krug diminished by the Civ
ing Of the cheek OF Mr.. krag IS city treas
urer TO Mr.. Furhman, placing the credit
with his hondssnan. responsible man,
instead OF placing 10 with the bank, p.ae-
ing it where Mr.. Furhmsn. in his trans
actions with this city treasurer, could re-
store to the city the amount of interest IL
Was pay.ng on It's bonds