The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-04-07
BOGGS' LOST MONEY.
How Tacoma's Treasurer Will
Settle With His Successor.
DOESN'T DENY LIABILITY.


TACOMA. ApriiA-fspsciall -Oty Treas-
urer BogEs proposes 70 refuse payment TO
the city OF the "a. 81, 30 OF the city's
funds which hs has tied mp In the sus-
pended Merchants National bank II Was
estimated during the municipal campaign
that Il was DESTROYS. % far - Mr.. Boggs
vas concerned, TO secure the election OF
city council and the appointment Of city
attorney Who would aid him in rspudiat-
ing this obligation. together with the
SIC 0o0 locked up "a the suspended Wash
ingson National bank, on the ground that
the city treasurer Vas not responsible for
the sale keeping Of the city's funds II the
city council failed 20 provide and dssig-
nate depository for its funds.
Whether or mot the counciimanic result
was satisfactory 70 this alleged scheme.
new tack has been taken and the city
treasurer proposes to rspudiate the Mer-
chants' National debt in Q personal man.
ner. and hold the clearing house rssponst
bic. This claim 10 TO b made upon the
ground thst the clearing house guaranteed
the deposisors Of the Merchants National
bank. and, the city treasurer being one OF
the depositors, his deposit was guaranteed
No doubt . lively fight viii result, and in
the meantime IL il proposed that the new
city treasurer shall accept tho receivers
certificate for the amount locked up in tho
suspended banks, and carry Mr.. Boggs
until the matter il settled. No doubt Mr..
McCauiey will extend to Mr.. Boggs any
reasonable accommodation in this manner.
So far as the Washington National bank
deposit Is concerned, the new treasurer
will also b asked 70 accept the certificate
OF the receiver for the SIC. 000 or the bal
sncs remaining in the bank when the new
administration takes Office April ~ Al
ready 20 per cent dividend has been
ordered. and today Mr.. BoRgs drew out
nearly 49, 900 OF the amount on which no
was nipped. But in the case Of the WASH
ington National the clearing house did not
guarantee the depositors. and therefore
the city treasurer will not repudiate the
debt, although he will expect his successor
TO accept the receivers certificate instead
OF the cash. Mr.. Boggs will also probably
secure the amount until the affairs Of tho
bank are adjusted, which Receiver Stuar.
Rice imagines will take at least two years.
In the Merchants National case two or
more years will very likely be required to
settle. In both cases, IL 10 expected by
Mr.. Boggs and othsrs. the defunct institu-
tions will pay 100 cents on the dollar. In
the case Of the Washington National 1t il
not unanimously anticipated that it will
pay in full. II receiver had not been
appointed, It was believed By many of the
clearing house officers and members. 1t
would have been able to settle dollar for
dollar. Indeed, il . receiver had not bssn
appointed, the depositors would probably
have been qua. snteed by the Clearing
House Association.
Tacoma taxpayers Who have been watch
Ing and waiting for move regarding the
settlement OF the city's funds which have
been tied up In the suspended banks, will
bs relieved on knowing that the city
treasurer does not take the ground that he
II not rsspons ibls for the amounts because
no depository was named by the city
council Of course Mr.. Boggs stated re-
peatsdly when pressed for . statement
showing where the city funds were de-
posted, that no and his bondsmen were
responsible for the funds, aud that mas
much a. no depository had been named
he did not have to tell whore the cash was
kept But such bluffs cut no figure when
tho legal merits of tho case 10 under con-
sideration.
Inc city cnarter etotee plainly enough
that the treasurer shall report where the
funds are kept. notwithstanding the city
attorney presented an opinion to the city
council holding in substance with Mr..
Boegs that it was mono of the city's bust
ness, 30 long A. 1t failed TO designate de-
positoriea Years ago in San Francisco
under almost similar circumstances, the
city was defeated in test case
According to the city attorneys deci-
sion, Mr.. Boggs never exhibited the cash,
although he subsequently reported such
and such amounts in such and such
banks. whereupon the Posr.ISrKLLreEScER
showed that in one instance there was, in
Guiding all cash on hand, less cash by 20
per cent. in one Of the stated repositories
than reported by Mr.. Boggs. Warrants
were carried - cash. Warrants drew 10
per cent interest. Taxpayers pay the in
teresI
Hereafter If the city treasurer's Office is
not run in the interest of the city, there
will be objection which will continue until
speculation in warrants At the taxpayers
expense il no more.
COOLIES EvADE DEPORTATION.