The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-11-09
Tacoma's Ex-Treasurer Charged
With Embezzlement.
QUEER PAPER IN HIS saNx.
The Warrant Buyers Methods Said
TO Savor of kruggery.
Sesrfy I've Years Age the .poss-rus.I.
hgsrcsr'' Kxpesed the Tr~..ux
kas the City rssk No Aetfss. Fear
Tag 10 InJure Its Credit

tonight hy Chief Of Police n. o. Smith.
ON a warrant sworn cut by Smith on be-
half of the city. charging Boggs with de-
frauding the city cut Of S2Soeo BY an
error in drawing the warrant. the amount
was made SIS. 600. instead Of So, 800. Mr..
Boggs was on Pacific avenue, at the
corner of Twelfth street. when Chief Smith
approached him and made = formal arrest
Arrang gements were then made tor secur-
ing hondsnen. hut after consultation 10
was decided, owing TO the latsness of the
hour. to defer the securing OF
bondsmen until tomorrow. when Mi
ehsel Murphy and several firm
friends of the accused will, according to
present arrangements. so Oh Mr.. Boggs'
bond. which was liked in the sum OF
SIS. .Oo0 by Justice of the Peace ]. l.. Me-
Murray. Pending the filing OF = formal
bond, the justice accepted deeds and other
collateral bonds furnished by Mr.. Boggs.
Boggs' friends say IL is more Of
persecution than prosecution. They de-
plore the arrest of Boggs at o'clock as
night, when his friends were AZ home. es-
pecially & hen there was no desire on his
part 10 leave the city. Boggs will fight the
case and his friends intimate that he
will in turn sue the city for an unwar-
ranted criminal prosecution. The city
officials on the other hand. are emphatic
in their statements that when hoggs
placed William l. Tiieston's note for 500.
the Bair- Loomis note for $4,000, bis
clerks L. ID. Hill, note for $500. and .
Campaign expense entry" of S.. 600 upon
the books of the StateSavings bank and took
credit on behalf of the city for the same.
he virtually robbed the city OF that
amount. The above are items in the
counts on which he was arrested. City
officials claim that placing these notes in
the bank was simply no more nor less
than "Kruggery," by which they meant
that 10 was a case OF looting the city treas
nry aud placing worthless paper in lieu OF
cash to the city's credit Besides. they
claim that Boggs Was in control of the
State Savings bank.
City Attorney Wickersham Was asked
II. from a legal standpoint. Boggs would
have been guilty of misappropriation of
the city's funds II the notes placed in the
bank were absolutely good. He replied;
Yes, the statutes say he shall not con-
vert the city funds In any manner what
ever. Neither did he have a legal
right to cash warrants out of their order.
In both cases the penalty 10 from one to
ten years. imprisonment. and there Is no
fine. No, We are not now seeking return
of the city's money. IL Ii q criminal prose-
cution. pure and simple" The PRELIMINARY
hearing will probably take place Monday.
Monday morning tho Posr-fsrELLTaKS-
GER called attention TO the serious trend OF
the matter. At that time the Tacoma
bureau of the Posr-IsrKLfIaKscER WAS in
possession OF tho data upon which it was
proposed to arrest Mr.. Boggs. but by tho
request of the city officials no references
was then made to the counts. When Mr.
Boggs' attention was called TO the earn
estness OF the city officials in preparing to
prefer a criminal charge. he made light OF
the matter and insisted that he was in no
wise implicated. lie has pursued this
course all along. and in addition has held
that no one gave him any thanks for help
ing the city when it needed money TO pay
off its laborers. Beside, he argued that
there are in the city certain men who
have become his svowed enemies because
he, while treasurer. would not make large
deposits in banks in which they were in
terested. Others. he insisted, were moved
10 do him ''dirt" for political reasons.
Ii is now about two years since the
Posr-IsTEILIaEScEa called tho attention
OF the taxpayers TO the Tacoma city treas
ury Up TO the middle of last April MIR.
Boggs had held Office four years. or two
terms, end, according to the charter. could
not again be elected TO that Office. Mr..
Wheeler succeeded l.. +. Sampson and
Mr.. Sampson says;
when was in the Office people were
interested altogether Ia trading in town
lots Little attention was paid TO the city
funds. In those days | made a practice of
buying warrants and holding them unin-
dorsed. instead Of carrying great sums OF
money in banks. as cash. This vas tho
safer way and resulted In great SAVING
in money for the city. as the warrants held
- cash did not draw any interest. Finally.
when wanted cash, | had an arrange
nent with the banks TO take the warrants
and advance money on them. But i told
the city council at the time, especially
when arrangements were making Tor
new city charter, that some check should
be put upon the treasurer, so that he could
not in any manner take In these warrants,
paying for them with the city money. and
shen go and sell them and draw 10 per
cent. interest on them.
This statement by Mr.. Sampson brings
up the matter of specuistIng in city war
rants with city money. and he adds;
"As that time no premium was paid fov
city warrants. but IL has since become =
practice 10 pay FOR the privilege OF buying
warrants drawing 10 per cent. interest.
During the period 10 which refer monsy
vas worth more faan I'D per cent 10 DuF
lots wIth. have always held that what
ever interest is realized on city warranps
should be paid into ths city treasury"
Mr. sampson thus explains how u ra
possible 10 iuggis with the warrants;
''For instance, q man presents warrant
out OF its order, or Hhsn there is no money
ia the fund il represents with which -
cash ID. II the treasurer indorses IL ''un-
paid for lack of funds" and returns il to
the holder. TX begins TO draw interest forth.
with at the rate Of 10 per cent. Now then.
IL vas irpt,c 81 ble If treasurer 10 desired.
ana SO Informed the council, 70 take il
these warrants, and not sign them for SAP
twD months. or three months. and then -
and eash them. at the same time endors-
inv thsfn unpaid for lack Of funds, ana
maks the date two or three months back.
Then no one can tell just hos long q eer.
tam warrant has been draxing interest
While IL was held fn the tressurerfs offios
in lseu Of the eash-
APPROXIMATELY, the city has today $780,
fo0 outstanding ia city warrants, shlis -
The same time il - supposed 10 be carrying
s5oge deposited in bank. drawing M
interest. except In q few instances.
When the P0sr-iwvxsaIsgrcs called
attention 10 these matters some good busL
ness man did not npproys og tks stea Sf