The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-04-06
rHE DEFENSE ALL IN.
Ilhrman Tells Why He Bor-
rowed From Krug.
1soucHr CITY GOT INTEREST.
= Claims 60 Have Dene Better Thsn
ssshs By Putting Up Security
Closing AFgunsns Bsgsa.

II To-Day VIII o tno NTH 3u0 t41y Gay OF
- Thurman trial. All Of the evidence 10
8 md Mr. Miller had made the opening
aunsns for the state when court ad-
kurned. II is possible that the case will
SO the jury this forenoon. Mr. Fuhr-
nm, . few ex-city officers and half.
f6pen prominent business mea who te.ti-
! - 70 Mr.. Fuhrmsn's good reputation
|. taoss July 2. 1862, were the only wit
4 scpses for the defense.
A. soon - Nj. Fuhsman begsn testify.
4 - - 20 how he had come TO borrow from
Hrug and IL was seen that he would try TO
+ ssevs that he acted - the city's prsssrvss
/ b the time Of need ~ . defense. Just - z.
! c. Hughes. his attorney. had outlined in
! ~ opening statement, Mr.. Miller rosa
! osd ssked the court 70 consider that all
sueh testimony went in over tho objection
cfths state. The court said he would do
| - and grant an exception to oil objections
eonsidered ~ overruled. On Mr.. Tuhr.
nsn's part Mr.. Hughes announced. when
| ~ REORGANIZATION - to the thousand
and one transactions between Krug and
Ns. Thurman began. that he would ask
| ~ court TO also consider IL o. oil objected
4, the objections overruied and excep-
ions allowed. This prevented great waste
q time In conducting the case, but never
theiess there were several lively wrsnglss.
The court was called to order promptly
u $50 o'clock yesterday morning. The
fnt witness called for the defense WAS the
Assendant. Mr. Fuhrman himself. He
tsok the oath and In q very low tone testi-
tsd to exactly the same facts Mr.. Hughes
nd stated would be proved when he made
afse n m - At att uA had 80
DesttIe three and one half years ago from
fremont. Nsb., where he had lived since
no He went into the real estate busi-
Sess. Towards the end of the year 1891,
Acting Mayor Hall, who had succeeded
Mayor White, advertised for bids for the
vurchase Of $4,000 or $4,000 worth OF
saiary warrants TO pay the iaborers in tho
employ Of the city. who wished cash aud
not deprecated warrants- No one would
buy the warrants and at las, Mayor Hall
md other prominent city officials came
10 Furhman's Office and asked that, a.
IN accommodation to the city, he buy
/ them. Mr.. Thurman could not buy them,
bat offered 70 find market for them at .
price not less than 95 cents on the dollar,
the lowest price for which the city could
ssil them under the ordinance. Then Mr..
Fuhrman autographed to his correspond
snss in several cities. and they bought the
warrants at 0oK cents through Mr.. Fuhr-
man, and he guaranteed their payment.
These warrants were on the salary fund,
but the work for which they paid was
done In the water department, and there
vas an understanding that they were to
- redeemed from the sale of the water
system bonds. After this several other
Issues OF warrants Of the same kind were
made. and Mr.. Thurman bid on those
also. and bought them whenever they
|could not DO sold to any one else. but his
bidding had created . market for them.
When ths Ronald administration came
IN in the spring Of 1892. Mr.. Thurman had
elargo sum of money tied up In the war
rants He went TO Mayor Ronald and
Corporation Counsel Donworth and asked
whether. with the proceeds Of the sale Of
he bonds which was about to BE- made. the
variants would DO redeemed. Mr.. Dom
worth told him that there was Q techni-
eality which would probably prevent this
being done. There was some question ~
70 whether Acting Mayor Halls signature
70 the warrants was legally binding on the
city ut the time they were signed. Then
Mr.. Thurman went to SEQ Krug at the city
treasurer's office. The latter said that he
had no power TO redeem the warrants. hut
that in order to accommodate Mr.. Fuhr-
man he would loan money on the war
fants as collateral security. Mr. Fuhr-
man bought up some warrants on May %
and got a check for $4,000. and on June IS
one Of $500. For both checks he put up
more than their face value in warrants.
No arrangement was made for the payment
Of interest.
When the bonds were sold Mr. Fuhr-
man again went TO Krug and on July 2.
lse., got a check for $4,000 by putting up
more warrants. Ii was paid at the WASH
hgion National bank In New York sx-
change. II was arranged at this time that
. soon as the warrants could be redeemed
krug was to redeem them and sxtinguish
the debt. All of these transactions were
open and above board in the city treas
srers Office. in presence Of third parties.
Mr. Thurman then adjusted his glasses
md Identified the SIG interest account be-
tween himself and Krug. He had paid
The interest at s per cent, telling Krug
That as the city was paying per cent, It
vas only right that he should. krug put
the money In the till and treated IL a. IL 10
had been paid TO the city, not 10 him indi-
uduaily. krug had said that the city
might As we'll have the interest from Fuhr-
nan as from the banks.
Mr.. Thurman had never eounselsd
krug 20 use the city money for his own
Profit OF his own knowledge Mr.. Fuhr-
naa knew that all the banks having city
money paid interest. except that the
North End bank paid neither principal
Dor interest After the frst installment
sh interest was paid. sometimes to krus
md sometimes To hts deputy In Office. j.
= Knott Mr. Hughes then asked Mr..
tahrmaa whether he had repaid the
sasee loans evidenced by the checks, and.
Wceiving an affirmative answer. con-
unned by asking Mr.. Thurman about his
making good the shortage in krugs &C.
ennts as a bondsman, but On objection 10
We question was sustained. After the
Witness had told about taking up $4,000
worth Of warrants 90 give the city money
VIA which to ray interest on some bonds
u December. 1851. he vas examined BY
n Mcbride a. great length.
Under this contamination Mr.. Fahr-
Ran FIRST told when he had tirss borrowed
heaey of krug. the time the $4,000 check
Vas given on May -, isaa TIE next
ans borrowed were the S. 90 on June Is.
sad 5000 on July .. isaa Then Mr..
aebride asked him whether he had mos
soaght some salary warrants on or about
Lag 10 lsla Over the objection OF Mr..
hughes, Mr.. Thurman said that he did
~ ST about ;hat time 81, 100 in salary
warrants. paying Tor them lo5s cents on
De dollar. They had no; been bought
/ Il A..g. I'd 49, Afi