The Seattle Post Intelligencer

SECURITIES PUT UP
Now the Banks Are Ready to Furnish the Money.

THE BONDSMEN KEEP FAITH.

Henry Fuhrman and Fred Sander Deposit Collateral in Escrow as Evidence of Good Faith.

The settlement of the Krug deficit yesterday passed from the stage of negotiation into that of an almost accomplished fact. There can no longer be any doubt that all parties concerned will keep faith and that the consummation of the contract of the bondsmen with the city will be delayed only by the preparation of the necessary contract.

L. H. Griffith, who, by the way, is not a bondsman, but a debtor, has deposited the securities agreed upon and the mortgages have been filed for record, after being duly accepted by the city.

Yesterday the bondsmen made an energetic and positive effort to convince the public that every promise would be kept. Lester Turner, cashier of the First National bank, was selected as trustee, and securities upon which a large portion of the money is to be obtained from the clearing-house banks were placed in his hands. Henry Fuhrman binds himself in notes for $25,000, secured by certain sureties, collaterals and properties, the particulars of which are not made public, but which are acceptable to the banks that are to furnish money upon them. Fred E. Sander gives notes to the amount of $20,000, signed also by H. K. Hall, the well-known Port Blakeley ship builder, who is his father-in-law, and his wife. Of this amount $12,000 is to go as payment for Mr. Sander's loan from Krug and $8,000 will apply on the bond, while Mr. Fuhrman's $25,000 payment applies on the bond alone, he having already settled his indebtedness to the city treasury by giving up the $17,000 worth of warrants he had deposited with Krug as collateral for a loan of $15,000.

In arranging a settlement between the bondsmen Mr. Fuhrman's attorney, Mr. E. C. Hughes, proposed to the other bondsmen that inasmuch as his client had been publicly reported as having made a large sum of money by handling city funds and therefore been placed in a very unfortunate position in regard to public sentiment, he was willing to make greater sacrifices than could be expected of any other bondsmen and would stand three times the share of the loss of the other bondsmen, although in fact he had made no profit from city funds. Mr. Fuhrman has done more than this by pledging his credit in the sum of $25,000, while the other bondsmen, with the exception of Fred E. Sander, who puts up $8,000, will only pay $7,621.33 each.

While the bondsmen now have to put up about $85,000, they will receive indemnity for a considerable sum through the collection of some of the securities rejected by the city and realizing upon property which will be turned over to them by Krug. The loss to the bondsmen, it is thought, will eventually be less than $40,000. Whatever it may be, Henry Fuhrman will bear three parts, Fred E. Sander two parts, and six other bondsmen one part each. D. T. Denny, one of the bondsmen, has refused to do anything, and M. McEligh has stated his utter inability to do anything at present, and has given the other bondsmen, who put up his share, his note for the purpose of sharing the ultimate loss.

The Post-Intelligencer has heretofore intimated a public suspicion of insincerity on the part of Mr. Fuhrman concerning his promise to put up $25,000 since a committee acting for the bondsmen consisting of Mr. R. R. Spencer, Mr. N. H. Latimer and Mr. J. Y. Ostrander had reported that on examination of Mr. Fuhrman's books they had found that the only profit he had made in the use of the city's money was about $122 premiums on warrants he had bought, but Mr. Fuhrman has shown by depositing his securities with Mr. Turner in escrow that he means to keep faith and that the $25,000 he pledged as bondsman will be paid into the city treasury according to the terms of the proposition.

The banks which are to furnish the ready cash have notified Mr. Turner, as trustee, of their acceptance of the securities offered by Mr. Fuhrman and Mr. Sander and of their readiness to issue the certified checks agreed upon as soon as the contract authorized by ordinance has been signed. Corporation Counsel Donworth is now engaged in the preparation of that important document and it will be ready today or tomorrow.