The Price of a Scandalous Settlement
New Whatcom city leaders face backlash over a proposal to accept devalued warrants and bad bank certificates to settle a massive treasurer's embezzlement.
The story, cleaned up
A cleaned-up reading of the newspaper page: spelling and layout repaired, one story lifted off a crowded page. It follows the original closely but it is not a transcription. The original page is below; read it if a detail matters.
Follow-up on the balance of the proposition for settlement with ex-Treasurer P. M. Isensee which is to come up before the council next Monday evening. The bondsmen admit having been officially informed that Isensee's shortage amounts to $75,191, but they do not admit that amount to be correct. They offer to turn over to the city a receiver's certificate on the Puget Sound Loan, Trust and Banking Company for $9,000; a receiver's certificate on the Columbia National Bank for $6,047; the official check of City Attorney Neterer on the Columbia National for $1,507.04; New Whatcom city warrants to the amount of $7,269; and cash $1,492; total, $25,315.94, to be received as cash. And in addition to the above, it is agreed to dispose of 300,000 feet of fir logs within ninety days and pay the proceeds to the city. There is strong sentiment against several provisions, notably the one providing for acceptance of receiver's certificates and city warrants as cash. The certificates have been offered for 50 cents on the dollar, and city warrants are salable now only at a heavy discount.
“There is strong sentiment against several provisions, notably the one providing for acceptance of receiver's certificates and city warrants as cash.”
Public funds misappropriated by city officials have long been a flashpoint for civic outrage in Washington. The debate over accepting 'cents on the dollar' for stolen assets reflects the perennial struggle to balance the need for quick restitution against the demand for full accountability in the public square.
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