The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-10-21
THE BOGGS WARRANTS
CITY Authorized the Purchase
by the Treasurer.
cERMAn-AmEalcAN's RECEIVER
Not Yet In Charge Of the Bank Conn
mercial Bank Depos:tor Wants
New Receiver.

Tacoma. Oct. 20.-SpeciaL-S. r. BaIk-
well who was appointed receiver O. a4e
German-American Safe Deposit afa1 saw
ings Bank yesterday morning ~ 11|ss
Parker, is as yet receiver only IN naEIae.
He has not taken charge Of the bank, ara
cannot uutE the stay bond put Up oy The
bank Saturday IS rejected by the court
The city has fled exceptions 70 the o0Fad'
and under the statute the bank 9as thIes
days In which 20 have Its sureuez justly.
Judge Parker fixed the stay poEe al sNv"'
and IN a short time the banks attorneys
filed the bond. signed by X D. siuien'
Royal A. Cove. j. II. Wat, john MuFFas,
j. A Lawrence and G. NJ. Lawrence each
for $1,000
The cfty's position in urging the ap-
pointmeut OF a receiver for the German
Americas Bank is regarded rs a peculiar
one. and brings into the case the ~hoie
question of the invalid warrants Issued
during the Huscn administration and
known as the Boggs warrants. How these
warrants acre issued ana bought Dy the
late city treasurer with city funds has
never yet been fully told. The facts we're
learned from "A city official by the Post-ln-
telisgencer correspondent this afternoon,
and are as follows:
TIE June. 1899 report OF City Treasurer
Boxgs showed about s459.@0 OF city finds
in bank. About that time an opinion was
rendered by Judge Dillon. OF New York,
attorney for the Tacoma Light and Water
Company, In the sale OF the water and
light plant, 70 the effect that the issue 4
water bonds was legal, and that the city
had not exceeded It's constitutional limit
OF indebtedness. Shortly afterward how
ever. il was found that the limit had been
reached by the city. although the Issuance
OF general fund warrants was continued.
Beginning July /, 1893, the city treasurer
Endorsed the warrants as they were pre-
1sFH az = frsTrr ~
OF the employees OF the city were told 10 20
down 20 Boggs' bank. the Tacoma Trust
and Savings. and get their money. They
did this, but were Obliged % shave them
10 per cent. This continued FOR sons time.
Unit! Councilman Harris took the matte
mp. He Jumped on" Mr. Boggs. but the
treasurer told him that tho state law re-
quired him TO redeem warrants in tho order
Of their issuance. and that the city had
several hundred thousand dollars or 10 per
cent general fund warrants outstanding.
md held by Eastern parties Thereupoa
Mr.. Harris called the treasurer's atten-
ton 10 his balance Of ss50 COO IN the city
banks, and told him he should redeem the
outstanding warrants II it took every dol
lar and then pay the city employees the
full amount % their salary warrants.
"Oh." said Mr.. Boggs but n ala that
and drew on the banks here 81 would bust
every one OF them. and create a financial
The coucilman was firm. however, and
shortly aftorward introduced .esolu-
tioa ordering Boggs 10 redeem the out
standing warrants with city money on de-
posit In the banks. Boggs went before the
council when the resolution came up, and
fatiy told the members that he would not
obey the resolution II it were passed. Dur
Ing the discussion that followed Boggs Of
fered TO take M the warrants as they
came In and deposit them In the banks
receiving credit for the city for the fun
amounts. Tho banks. he said. could sell
them Ia the East at par. The treasurer s
proposition caused a bitter fight, but
majority OF the council were with him.
and so ho began the work or Juggling in
warrants, buying them with city funds
and Endorsing them as unpaid.
The worst OF this pernIclous practice
was that all OF the general fund war
rants issued from about July l. iSgs. tin
Boggs went out. April i6 1904 were NE
gal, because the city was beyond its limit
OF Indebtedness. During that time nearly.
II not quite. 10000 of city money went
over the treasurer's counter for this
worthless paper. short time before
Boggs went out of Office over 800. 900 of
these warrants were deposited In banks
holding city funds. the greater portion
going Into the Tacoma Trust and Saw
ing bank.
In their suits against the city She Co
lumhia National and Gerrnan-American
banks claim that not only were tho war
rants illegal. because they were issued
after the city had passed its limit Of in
dehtedness. but also from the fact that
they had once been redeemed by City
Treasurer Boggs with public funds. and
were therefore cuQbfy worthless