The Oregonian
Portland, Oregon
17 February, 1885

ALLEGED DEFALCATION. -- James Gilliland, clerk of the district court at La Conner, W. T., has gone to Victoria, and it is alleged that he is a defalcator to the amount of $15,000. Gilliland is an expert telegraph operator, and first went to La Conner some years ago when that place was in transfomation, being an employee of the Western Union company. When Judge Lewis came to the bench in the territory he appointed Gilliland to the position which he has until recently filled. Previous to this time he had been much addicted to drink, but this reposing of confidence in him produced a reformation as to his bad habits. He soon won the esteem of the citizens of La Conner, and as he interested himself to negotiating loans he was before long entrusted with considerable business. He was also appointed trustee of a large estate and had several other important trusts reposed in him. He bought large quantities of grain from Skagit farmers for San Francisco houses. Some time ago he was authorized by the latter to make large purchases for them. Instead of doing so on their account he bought on his own account, expecting to realize a profit on a rise in price of the grain. The price of grain, instead of going up, went down, and Gilliland soon found himself behind a considerable amount. He tried to make up the deficiency by using money belonging to the estate in his charge, but that was not sufficient. Several months ago he went to San Francisco, since which time the La Connerites mourn his loss from their enterprising town. While in San Francisco he remarked to a man who knew him that he preferred British Columbia as a place of residence hereafter, and by the next steamer he went to Victoria. Many friends of Gilliland do not believe his shortages will amount to as much as first stated. Some property in La Conner owned by him will cover in part the deficiency. He has a wife and several children who are now in Seattle.

-- transcriptioin by Kate Maynard, 2010