The record-union., 1895-11-27

was also threatened, but weathered the
storm by a reorganization, in which
Bennett and Thompson of the Mer-
chants disappeared from its director
ate and the Imperial Loan and Trust
Company was consolidated with it as
the Bank of Tacoma.
'Boggs now became the patron saint
of this institution. The light and water
purchase and extension bonds were
sold to Charles B. Wright. He agreed
TO pay the money at q certain time,
but failed to keep his agreement, and
now, for reasons too divers for detail,
the opposition party became strong
and there came a revulsion of public
sentiment setting strongly against the
deal. The council declared the whole
matter off. The Wright-BoggS- banks
party urged an extension of the time of
payment; Bennett, now in control of
the Ledger, urged it; citizens meet
ing, composed of bankers, urged it;
Boggs, distracted, urged it. Attorn-
eys Shackelford, Titlow and White
house, having been engaged by the city
as special counsel, and being of the op-
position party, were active to prevent
consummation of the DEAL
i
THE pressure on the City Council
through the medium of the banks and
taxpayers was SO great that they
finally yielded, accepted an indemnity
bond of Wright, signed by w. D. Tyler
and other bankers, and delivered the
water and light bonds to Wright, and
Boggs got the money in installments
at intervals covering nearly a year
How to prevent the council from the
immediate expenditure of these bonds
was Boggs' problem. The precarious
condition of banks was such that they
did not want to be disturbed in the
possession of what money they had,
and all hoped to be able to float Boggs'
accumulated warrants and thus re-
lieve the situation. SO the City Council
was induced to pass a resolution in
Structing BoggS to inVest-think of the
righteousness of iti-the extension
moneys in general fund warrants even
as merchant might instruct his book
keeper to go out and invest his sur
plus in his own notes of hand. But it
satisfied Tacoma financiers, because ii
gave them money instead of warrants
to hold Thereafter everything passed
smoothly enough until February, 1894,
when the City Council suddenly order
ed the extension moneys deposited in
six banks, not naming them, and re-
quiring interest to be paid.
This gave Boggs a twinge. The Ia
coma National and Traders had re-
sumed business long enough to get
thereupOn closed up again.
THE people were by this time pretty
well advised that there was no money
in the city treasury. Trea sury and
bank balances showed over 500, 90
on hand but there was no cash to pay
warrants with and it became an open
secret that the banks having the larg-
est city deposits had the least ability to
pay. BOggs' term was expiring; he was
not eligible to reelection.
"One James w. McCauley, a former
banker of Los Angeles, was selected by
Boggs as his successor. and as before
an immense corruption fund was sub
scribed by the banks and others con-
cerned with him to procure McCauley's
election. A neWspaper-the Morning
UniOn-feared as a possible enemy, was
purchased outright and run in the in
terest of Boggs and McCauley; the
opposing. But new elements had en-
tered into politics, and McCauley's
election was encompassed by a large
plurality Some Populists had been
elected to the City Council, and there
was a great deal Of loud talk about
counting the city's money, not accept
ing warrants, etc, and BOggS, who on
April 1st had reported "S212 600 of un-
indOrSed warrants held in cash. be-
came distressed. He had little diff
Guilty. however, in getting Grattan II.
Wheeler's bank of Tacoma, with
side issue called the Mutual Investment
Company, to handle the warrants, to-
gether with the State Savings Bank,
the Columbia National Bank the Com
mercial Bank and the German-Ameri-
can Bank. all now defunct. Settlement
with his successor was never made.
'+McCauley assumed office, checked
against Boggs' bank accounts, got
money out of them when he could and
when he couldn't used the current reve-
nues. He followed naturally enough
his predecessors lead. He got 81 ,000
into Harry Lombard's State Savings
Bank a day or two before it failed,
and Harry wont to the Japanese vii
lage The failure of that house put
Whitehouse in as receiver and resulted
in Boggs' arrest and prosecution,
though he was acquitted, and revealed
that Boggs had deposited not only war
rants, but notes Of his own and others
ae city funds and that the bank had
subscribed by thousands to the CAM
paign fund under the head of election
expenses.
''Boggs was acquitted because the
evidence against him was wholly that
Of another's making, l. e.. the books OF
the bank, which, the court held, We're
conclusive as against the man who
made the entries, but as against no one
else, and so BOggS escaped without q
verdict from the jury, went to Oregon
and bought a gold mine. which he was
operating when arrested again few
days ago
''McCauley assumed Office in April,
/ 1891, and almost Immediately built an
elegant residence, furnishing it re-
/ splendently with the costliest of goods.
/ Grattan II. Wheeler went to New York
as the agent of the Mutual Investment
Company w y. Allen. President of
/ the Bank Of Tacoma: took hundreds OF
/ thousands Of city warrants and went
/ to Chicago to attempt TO dispose OF
! them. 4 deal was engineered through
! the City Council whereby bonds ana
! securities were demanded of every
/ bank having city money on deposit,
and a contract was made with the
Bank Of Tacoma permitting it to re-
main undisturbed for one year.
1T was The approach OF this year of
! grace. together with the appointment
/ of new Finance Committee that
( brought suddenly to a close the career
! OF the Bank of Tacoma, with some
! SI2SO 600 of city money ostensibly on
deposit there. An assignment was
made to a friend of the President, but
/ the court appointed Tilton receiver
I The books were stolen before the re-
! cciver could get possession, but enough
was left behind to show that Boggs had
/ been borrower to the extent of over
/ $4,000 that he had overdrawn; that he
had had SIS. coo for election expenses
that Wheeler was sent remittances
monthly of hundreds of dollars, and
that Boges' deposits had consisted OF
cash. notes. warrants or any old
thing.
Now. then. had come a time for the
/ banks and brokers from whom Boggs
had cut loose to get their revenge. The
Columbia National was the next largest
Gnrcs.itc ~ nf cifN finds At one firl,e