Grand Rapids Herald-Review Newspaper, October 20, 1909, Page 1

nen Ff Imperfaat Jago SOCIETY. ‘Mparteoy Faye VoL, XVII—No, 18. Granp Rapins, Irasca County, MINn., WEDNESDAY, OCIOBER 20, 1909. Two Dollars a Year. KREMER SHORTAGE TILL IN DOUBT Will Not Be Known Definitely Un- til All His Accounts Have Been Examined. MUCH SYMPATHY FOR HIS FAMILY Belief Is General That the Former Treasurer Is Mentally Unbalanc- ed—Board of Audit Now At Work. | — M. F. Kain, deputy public examin- er, and the board of audit, on Monday afternoon began in earnest the ex- amination of the accounts of Arthur A. Kremer, late county treasurer. It may be several weeks before the ex- tent of his shortage is known, Ex- pert accountants were eager to under- take the work, one of them even coming all the way from St. Paul on Monday to persuade Mr. Kain to let him undertake it. The examiner, however, was firm in his determin- ation to save the taxpayers of the county as much as possible and to confine the work to himself and Neil Mullins, chairman of the board of county commissioners; M. A. Spang, county auditor, and I, D. Rassmussen, clerk of court, the last three named gentlemen constituting the board of audit of the county. Under the law each member of the board of audit is entitled to $3 per day for his ser- vices, but as only two on the aver- ag@ will be in attendance, the in- vestigation will only cost the county mbout $6 per day in addition to Mr. Kain’s services. Expert acountants would charge $25 per day and maybe drag the examination along for months. It is Mr. Kain’s desire to save the taxpayers all the expense possible. Mr. Kain received from Kremer personal assets of $37,048.20 of which $7,784.20 was cash and $29,- 264 in mortgages, bank stocks and other securities. This fund was turn- ed over to the new treasurer, who deposited it in a special account, to be held until the proper distribution fan be made when it is finally as- certained in what accounts of towns and townships the shortages occur. The money does not belong to the county as a whole, but to those sub-) divisions from which it was taken. The supposed shortage of Kremer is in the neighborhood of $40,000. That amount, however, is an asump- tion, based on the amount of securit- ies and cash Kremer held personal- ly and the rate at which he had been living. In his preliminary examina- tion Mr. Kain found shortages a- mounting to about $24,000. The to- tal may be more than $40,000 and it may be less. At this writing there is little to be added to the very com- plete story which this paper printed last week. All sorts of sensational rumors, nearly all of them without foundation have been flying about. The simple truth seems’ to be, and this is the concensus of opinion of the . people in town who know Arthur Kremer best, that he has not’ been in his right mind for a long time. Discov- ery of his shortage was inevitable, it being only a question of time when he would be found out. Besides he loaned the money right around home where everybody knew about the transactions. He could not have realized on his assets in cash at one time and fled, and these are some of the reasons advanced for the belief that he ‘- ot mentally = re- sponsible and has not been for a long time. Much sympathy is expressed on all sides for his family and other im- mediate relatives, and everybody hopes that the shortage will not ex- ceed *>- amount which he has turn- ed over to the examiner in addition to what friends and relatives may be able to raise, Kremer is a wreck of his former self. He was arraigned before Judge Huson Wednesday and a continuance was asked for by the county attorney on account of the board of audit not having finished the examination. He is at liberty under bond given last week for $5,000. He has not been at his former office since last Friday, and is keeping himself secluded at his home. A defalcation such as the Kremer shortage usually causes a furore in the community in which it occurs and a majority of people jump at the con- clusion that the loss, if there be a loss, will fall upon the taxpayers. They overlook the fact that officials like county treasurers are bonded by responsible surety companies. Kretaer’s bondsmen in the amount of $75,000 until the first of last January was the Metropolitan Surety company of New York City, and since. that time the National Surety company of the same city. These companies were admitied to do business in Minne- sota under the jurisdiction of the in- surance commissioner of the state and it is a reasonable asumption that he took precautions necessary to insure the state against loss in case of defalcations involving these bonding companies. It is not re- asonable, therefore, to believe that any loss will ‘fall upon the taxpayers: themselves, irrespective of the ability of Kremer and his friends: to make the shortage good. Presumably the ANNUAL MEETING BUILDING ASSOC. Grand Rapids Building & Loan Association Elect Four New Directors Saturday. OFFICERS ELECTED FOR THIS YEAR Finances In Prosperous Condition —$1,500 to Loan on Good | « Security—Formed to Develop : , S is Grand Rapids. state has thrown every safeguard about bonding companies doing busi- ness in Minnesota ayd any company doing business here is responsible in every way. The Herald-Review does not seek to mitigate or excuse Kremer’s wrong-doing. It has merely printed the facts as accurately as it could obtain them, including the view that Kremer is mentally un- walanced. It does not believe that the taxpayers need have any ap- prehenson that any of the loss will fall upon the county. PLANS A BANQUET FOR PUBLIC GOOD Commercial Club to Have an An- nual Dinner to Discuss Im- portant Affairs. SPEAKERS OF NOTE TO BE ASKED Representative Men From Other County Towns Will Be Invited to Join In Promoting the Welfare of All. Following up its splendid work of last week the Commercial Club is planning to hold an annual dinner to} discuss affairs of importance not only to Grand Rapids but all of Itasca county. Notable speakers will be in- vited and also representative men from every other town in the county This dinner will inaugurate a move- ‘ment which will benefit every busi- ness man and taxpayer in this sec- tion, and is an evidence of the pro- gressive spirit which is being mani- fested by the leading men of Grand Rapids. Herbert D. Powers, president of the} club, has the matter in charge, and will shortly appoint committees to prepare for the dinner, the time for ‘which has not been set and which will depend upon engagements which Congressman Miller and other pro- minent men who are expected to at- tend may have made. Probabilities are the dinner will take place about December 1. It is expected that 75 to 100 rep- resentative men will attend the ban- quet, and of course there is only one place large enough to accommodate this number and that is the spac- ious dining room of the Hetel Pokeg- ama. The dinner will be held after. the regular dinner hours of the hotel. beginning probably at eight o’clock. Members of the club wishing to in- vite guests will do well to notify President Powers without delay as owing to the capacity of the dining room the number of banqueters will be limited to 100. School Board Holds Meeting. A meeting of the school board of district No. 1 was held Monday evening, but nothing of importance came up. The usual grist of bills werg allowed. *Phones Installed. New Since publishing the last list of new ‘phones installed, the Mesaba Tele- A meeting of the Grand Rapids Building & Loan association was held at the office of Kremer & King Sat- urday evening for the purpose of electing four new directors, the term of three having expired and another} director having sent in his resign- ation. The following were elected: A. C. Bossard, T. R. Pravitz, F. E. Reussvig and W. A. Rossman. Immediately after the election of the new directors a meeting of th poard of directors, which consists o: nine members, was held and the fol lowing officers were elected to guide the affairs of the association for the coming year: C. H. Dickinson, presi- dent; F. A. King, secretary; Emii Litchke, treasurer. This association is incorporated un- der the laws of the state and has been doing business since April, 1903, a little over six and one-half years. It is run at less expense than any other building and loan association in the state, the only officer receivin: a salary being the secretary, whi receives $20 per month for his ser vices. At present the associatiors) has fifty stockholders, but it thought that when the people oft Grand Rapids understands its work- ing principles the number will be doubled. Each certificate of stock has a par value of $200 and are generally sold in lots of five and over, payments being $1 per month for each share. Two series are issued each year ané the money received from their sale is invested so that it will earn ten per cent per annum. They mature in from eight to nine years and a man who invests $5 per month will, at the end of that time, receive $1,000 for an actual outlay of between $500 and $600. This association was formed solely for the purpose of upbuilding Grand Rapids and vicinity and is not 4 moneymaking scheme, in fact, it dif- fers from other associations of a like nature in that no officer, with the exception of the secretary, receives a salary to swallow up the profits. It offers opportunities to a young man who wishes to save a part of his earnings. The investment is safe and sure and if at any time, a stock- holder wishes to drop out he will re- ceive as much as he put into the as- sociation, or more, if he has been a member a year or more. In the past a number of Grand Rapids’ citizens have been “stung” by companies, who have been form- ed soley for the purpose of provid- ing large salaries for the officers of the associations, and when the series matured they generally went “bump”. For that reason many still think that all building and loan associations are operated solly for the benefit of the officers. This is not true with the Grand Rapids Building & Loan as- sociation, as the by-laws expressly provide that no other officer than the secretary shall receive a salary. At the present time the association has out loans amounting to over $18,- 000, each loan being in the shape of @, first mortgage. During the summer months the as- sociation has received applications for all the loans it could handle, but at the present time there is over $1,500 in the treasurer’s hands, which will be loaned out on good security. Notice to All Delinquent Light and Water Consumers. In all cases where delinguent light and water accounts remain unpaid on November 1, 1909, the service pipes and service wires of such delinquent consumers shall be cut off without phone company reports the following furth ios. additions to the list: Matthew Metz- ger, residence, No. 80; J. O. Johnson & Co., No. 293. Paste this in your book. By order of the Village Council. W. C. YANCEY, Recorder. Dated October 19, 1909. NEW TREASURER'S BOND ACCEPTED Bounty Commissioners Held Meet- ing Saturday—Accept Treasur- er Strader’s Sureties. SURETY AMOUNTS TO $250,000 Bond Signed By Six Financially Solid Men of the County, Tem- porarily-—-Mr. Strader Took Charge Monday. A meeting of the County Commis- sioners was held Saturday afternoon and the personal bond of Mr. Glenn Strader, the new county treasurer, was accepted in the sum of $250,000 and Mr. M. F. Kain, deputy state examiner, who has been in charge of the office, temporarily, turned the office over to Mr. Strader’s care Mon- day morning. worked in a general store in his home county. He came to Itasca county in 1908. Nothing better of- fering he spent his first winter in the northwest working in the woods. Next he went to the Hotel Pokega- ma, in Grand Rapids, where he work- ed faithfully for two years as night clerk and attracted the attention of leading men of the’ county like Senator D. M. Gunn and John C. Greenway, superintendent of the Can- isteo district of the Oliver Iron Mining company. The mining com- pany offered him a better place in its office at Coleraine. He accepted It was announced that Mr. Strader would take charge of the office Thurs- day morning, but owing to the fact that it takes about a week to get his bond accepted and returned by the National Surety company, of New York, with whom he will be bonded in the sum of $100,000, Mr. Kain decided to remain in charge of the office until Mr. Strader could secure a personal bond, temporarily, which would meet with the approval of his superiors. Mr. Strader at once secured the fol- lowing gentlemen to go his bond as sureties: Hon. D. M. Gunn, $50,000: A. C. Bossard, $50,000; W. C. Gilbert, $50,000; H. D. Powers, $50,000; John Beckfelt, $25,000; John C. Greenway, Soleraine,. $25,000. The individual amounts guaratiteed by these gentle- men make a total of $250,000. This bond is only temporary, however, and they will be relieved as bondsmen immediately upon the return of Mr. Strader’s bond by the National Surety company which will be about Ocflober 21. These gentlemen are six of the financially solid men of the county. Messrs. Gunn, Bossard, Gilbert Powers and Beckfeit are substantial business men of Grand Rapids, whose holdings in the county are very extensive. Mr. Greenway is general superintendent of the Oliver Iron Mining company’s mines in the Can- istoe district, and he, like the other signers of the bond, has large hold- ings in Itasca county. The holdings of these gentlemen total in the mil- lions and no one who has served the taxpayers of Itasca county has ever had a more gilt-eged bond. The willingness of the above nam- ed gentlemen to go as sureties on Mr. \Strader’s bond augurs well for the confidence in which he is held by mem who know him. As mentioned in last week’s issue of the Herald-Review, Mr. Strader has held positions of honor and trust with Hon D. M. Gunn, the Oliver Iron Mining company the First National bank of Coleraine and the First State bank of Marble, and in every one of them he has made good. He resigned his position with the First State bank of Marble to accept the position as county treasurer and his business training is such that he is perfectly competent to transact the affairs of that office in an able manner. He is a man of very pleasing personal- ity and the taxpayers of Itasca county are to be congratulated upon secur- ing an official in whom such high confidence is reposed. He commenced his duties Monday morning with an entirely new set of books and ticse who may have deal- ings with him will find a courteous and obliging official, who is always endeavoring to serve the taxpayers of the county in a conscientious man- ner. The new county treasurer is 36 years old and a bachelor. His an- cesters have been Americans for gen- erations. He has worked hard all his life, doing. well whatever came to hand. His birthplace was a farm in Franklin county, O., on which he remained until he was 22 years old. Meanwhile, working on the farm in summer he attended the country schools and business college in the winter time. Then for five years he and made good, as he always has done in any place he has ever held. Then he was promoted to be assis- tant zashier in the First National bank of Coleraine where he spent two years, and when the First State bank of Marble was organized last March he was-chosen cashier. That in brief is the ‘history of this young man, of whom the solidest citizens of this county think so well that they went on his temporary bond for $100,- 000 on Saturday, qualifying in the sum of $250,000. H. E. Graffam, the insurance and real estate man, who is an expert accountant, is helping Mr. Strader to put his office in shape. The new treasurer is temporarily retaining Miss Blanche Dewey, a valuable em- ploye of the office and has also en- gaged Mrs. Prudence Kribbs as a temporary clerk. TUNGSTON LAMPS FAIRMONTS LOSE TD GRAND RAPIDS In One of the Cleanest Games Ever Played In the Village— Score 5 to 0. HIGH SCHOOL WINS FROM BEMIDJI Boys Were In Fine Form, Winning By Score of 5 to 0—Both Teams Have Chance. for Championship of Range. The surrounding cities and villages are beginning to realize they have a hard nut to crack in attempting te defeat the Grand Rapids High school and City footbali teams. Thus far the High school team has played three games, winning from Bemidji by a score of 17 to 11, from Cloquet, 10 to 0, and from Bemidji again, 5 to 0. The City team has played twe games, winning from the Duluth Tig- ers by a score of 10 to 0 and from the Fairmonts, of Duluth, by a scoi of 5 to 0. The game Sunday was well attendex and was one of the cleanest contests ever played here, there being an en- tire absence of rag-chewing. The ON THIRD STREET Force of Men Under Superintend- ent Garris Erecting Lamp Posts on Third Street. STREET A MODERN THOROUGHFARE Six Posts on Each Block—Four On South Side of Street and Two on North Side—A Total of Forty Stands. Third street will soon be the most} making a score. Fairmonts are a clean gentlemenly bunch of fellows and the teams were evenly matched for weight. Both teams attempted the forward pass, but rarely with success, and when the Fairmonts attempted to make a trick play it was generally found that Grand Rapids had made a_ sub- stantial gain when the clouds rolled away. Towards the end of the first half, with but nine minutes left to play, the Fairmonts lost the ball on a fumble and Grand Rapids made a successful line smash and _ sent Myers through for a touchdown. They failed to make a successful goal kick. In the last half both teams settled down to play straight football, the City team playing a defensive game. The Fairmonts played a fast game, but the locals were too much for them and the half ended with neither side The results of the modern and up-to-date thoroughfare} game showed that the Grand Rapids in the village. The paving of the team was badly in need of practice, street already marks Grand Rapids! as their plays were not made in con- as the most progressive village in the range country, and with the addition of the Tungston lights, which are now being installed, she is far in advance of other villages of like size. Superintendent Garris, of the elec- tric light plant, has a force of men engaged in erecting the posts and fitting on arms, globes) and frame work which strengthens the arms. The lamp posts, forty in number, were purchased from the Cutter Street Lamp company, of Fort Wayne, Ind., and stand fourteen feet in height, each having a cluster of three lights. The posts consist of four-inch. piping and a base three feet in height, which is slipped over the piping. The posts complete are then imbedded in cement. The cost, including globes and other fittings, is about $25 each. The stands will be placed six to the block, with the exception of the block between Leland and Kindred avenues, on which eight posts will be: placed, four on each side of the street, seventy-five feet apart. On the remaining five blocks six lights will be placed, four on the south side of the block, seventy-five feet apart, and two on the north side, one at each corner of the block. For. some time the village has found the are light system to be very expensive and the Tungston system, which will now be used on Third street, can be operated for about half cost. The new lights will also give more light and add materi- ally to the appearance of the street. With the paving of Kindred avenue the coming spring it is thought that this street will also be equipped with Tungston lights, which will stave off additions to the power plant for years to come. The! village council has a force of men hauling in earth on the north side of Third street and are leveling off the boulevard. The coming year trees will be set out and it will only be a matter of time when that side of the street, which is now a barren (Continued on page eight) cert and scores were lost through not making successful end plays. The Fairmonts stated the best team won and bore their defeat very grace fully, joining in with a hearty cheer for the victors at the conclusion of the game. Grand Rapids at Bemidji. The Grand Rapids High school team went to Bemidji Friday evene ing to meet the High school team of that place Saturday and judging from the expressions on their faces when they left the village, one would have thought they were going to a funeral The cause for this was the absence of Ernest Toole. When the boys caught sight of their ancient enemies their waning enthusiasm soon regained its normal state and they went into the game with a determination to win. For some time there has been a lack of friendliness between the sports of Grand Rapids and Bemidji, but the game Saturday was good clean sport and was by far the cleanest that has been played between the two teams for some years. The only score made during the game was made by Grand Rapids in the first half, the boys going back to their old tactics of smashing the line after making two or three unsuccess- ful forward passes. The touchdown wa made by Murphy who, by the way, is {one of the best players on the team and who can always be depended up- on in a pinch, Young Powers is al- so a heady little player and we have heard many of the City team declare they would like to “swipe” him, The locals made no attempt to score in the last half, adopting defensive tactics, letting the Bemidji team jwear itself out, and the half ended with no change in the score. Already there has been talk of who will be the champions of the range district and the sporting editor of the Duluth Evening Herald unhesitating- ly names both the High school and City teams as champions of the range (Continued on page eight) HISTORICAL gneg poss 2OUL acy; Cs ee ne Peg —s week