The Marietta journal. (Marietta, Ga.) 1918-1944, 1919-03-07
BROKER MISSING WITH
SOME OF COBB COUNTY
and MARIETTA PAPERS
No Returns Have Been Made
for Either
Notes Signed To Renew Loans Said
To Be Held Elsewhere. No Con-
sideration Would Be Plea If Pay
ment is Asked On Them.

A sensational condition of affairs
pertaining to the finances OF the city
and county has come to light during
the past week.
It is probable that none OF the
actual funds of either city or county
will be lost by reason of the situation,
but the matter has assumed very
grave proportions, and the amounts
involved are so large as to give cause
for serious consideration.
For some years the city and county
have secured loans through the agency
of Frank Scarboro, broker in Triton,
Ga, and last year the city had $48,-
600 and the county 100000 borrowed
on notes through this agency.
On the first of the year both these
amounts were due, and new notes for
like amounts were signed by the city
and county authorities to take up the
old one and sent to Scarboro.
These new notes in case Of the city
were eight notes of $4,000 each and
due on March LIST, 1919. In the case
of the county the notes were six in
number and were for $4,000 each,
and due December 81, 1919.
These notes were sent through the
regular channels to the Triton broker
to take up the old notes due on the
first of the year.
He reported that he was unable to
get the holders of the older notes to
renew the loans at the rates of inter-
est named, and that he would endeay-
or to get other parties to take them.
In the meantime the holders of the
past due paper of the city and coun-
ty began to call on them for pay
ment.
The reports from Scarboro were
investigated and appeared to be cor
rect, but on February 15, Scarboro
left his office in Triton, ostensibly to
90 to New York on matters of bust
ness, and has not since been heard
from *e mr.
Parties at Triton with whom he had
business report heavy losses on his
account, and many irregularities are
reported there in his dealings. 1t is
not believed that he will come back
to Triton, although it is said that
no warrant has been issued for his
arrest. His business has been placed
in the hands of receiver, however.
He was we'll connected there, left
a wife and two small sons in Triton,
who have not heard from him. His
wife was Frustrated by his disappear
ance.
The last notes which were given by
the city are said to be held by the
National Park Bank of New York, and
so far as. the notes of the county are
concerned, no knowledge of them is
yet at hand.
Of course, neither the city nor the
county has ever received any consid-
Grafton on account of any of the
notes. and it is claimed that they are
not legally bound to pay them.
The holders of the notes will no
doubt demand payment, but whether
they could innocently purchase SUCH
notes without seeing that the checks
for same went to the proper authorl-
ties is doubtful.
The whole proceeding was regular
in every respect so far as can be
learned. on the part of Marietta and
Cobb county officials, and no blame
attaches to any of them. Aside from
the fact that some one holds these
notes. and will probably make claim
for payment and be denied by city
and county, the unfortunate fact re-
mains that it can not but impair the
credit of both, and both need money
now to retire the notes outstanding
for which they have received the mon
ey last year.
We do not think there is any cause
for alarm about the town or county
losing any money by reason OF any
Illegal act of the broker, but we think
if but right that fair statement OF
the facts be given the people.
HON. w. r. POWER