Whatcom's 'Honest Phil' Found Guilty of Embezzling City Funds

WHATCOM, Wash., March 9.—The long and hard-fought Isensee case is ended, and another triumph of law and justice is recorded in Whatcom County by the jury's verdict of 'guilty' shortly before 11 o'clock today, as charged in the indictment. The utmost satisfaction with the verdict is generally expressed, the more so, perhaps, because the court's instructions were regarded as furnishing a good excuse for a disagreement if any of the jurors had been 'fixed.' The suspicion, though quite general, the verdict shows to have been most unjust, although the time occupied in deliberation indicates that when the jurors retired there may have been a doubt in the minds of some of them. County Attorney Newman concluded his argument at 10 o'clock last night, and after a brief recess Judge Winn began reading his instructions to the jury, which occupied considerable time and seemed to cover every point raised by the state or the defense. The charges in general were regarded as favorable to the defendant and in line with the position assumed by his counsel that there is a 'reasonable doubt' that the funds for which Isensee utterly failed to account were taken by him with 'wilful, malicious and felonious intent to defraud the city.' The judge charged that unless this intent is established beyond a reasonable doubt, the jury should acquit, for 'every taking or using of public money is not an embezzlement.' To find the defendant guilty they must be satisfied that he converted the money to his own use. The fact of the shortage is so plain that 'he who runs may read,' and Isensee did not and does not deny it, nor is it denied that he and his bondsmen are civilly responsible for it. Isensee's evidence, if true, accounts for about half of it, but he and his counsel would have the public believe that the disposition of the remainder is as much a mystery to them as to the people whose treasury has been plundered. Isensee swears that he has never feloniously appropriated a dollar to his own use. Some of the missing money is in logs and logging outfit; some is in real estate; some in the suspended banks; some in notes, and some has been used to 'help out the boys.' What has become of the remainder Isensee says is a deep and dark mystery. It is reported that the jury stood six to six at the beginning of the balloting. They came into court about 10 o'clock and asked instructions as to whether the state's exhibit No. 67, which is the defendant's answer in the civil suit against him and his bondsman, was in evidence. The court said it was and that the jury must be its own judge of its weight. They then retired and returned a few minutes later with a verdict of guilty, with a recommendation for mercy. The verdict was read in a profound hush in the court room. It was received by Isensee with the same appearance of utter indifference that he has shown throughout the trial. A new trial will be asked for, and if not granted an appeal will be taken to the supreme court.