The Krug Bond Fight at the North End Bank

The trial of the suit of C. G. Perkins, trustee for Krug's sureties, against the North End Bank and the city of Seattle, which has occupied Judge Osborn's attention for two days, was brought to a close last evening and taken under advisement by the judge. The suit is one asking to be subrogated to the rights of the city against the funds in the North End Bank.

After the settlement between the city and the sureties on Krug's bond, Krug assigned all of his right, title and interest in and to all securities which he held to the sureties, and the sureties appointed C. G. Perkins as their trustee to sue and collect and distribute the amounts belonging to the parties entitled to the same.

The plaintiff claims that the sureties have settled with the city, and for that reason the sureties are entitled to be subrogated to all the rights of the city. The North End Bank and the city both claim that the contract made with the sureties by Krug had not been complied with, in this: that the statement of the amount in the National Bank of Commerce was in reality more than the amount actually credited to the city upon the books of the bank, the difference being about $1,500. The city claims that the credit given in the savings bank was a fraudulent statement, and that Edmiston, who was one of the sureties, in reality had no account in the Savings Bank, and that the credit given the city upon the books was fraudulent. The plaintiff denies this and says the sureties complied with the contract, and hence are entitled to recover.