The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1894-01-24
STEWART ON THAT LOAN OFFICE
How One City Office Was Con-
Quoted.
A Street Superintendent Borrow
the Public Funds.
Stewart Declares He Ii Only = Soaps
goat for the Sins of
Others-The Case
Concluded.

The trial of Arthur Stewart, charged
with enlightenment, was taken up again
yesterday by Judge Smith in depart
ment ne,of the superior court, the most
remarkable feature OF the case being
the evidence az to the manner in which
Street Superintendent Watson's Office
has been conducted. Mr.. Watson him
self appeared to have left everything to
his deputies, and testified, in fact, that
he knew nothing whatever about the
state of the cash coming into his Office,
because he knew nothing about the
keeping of the books.
]. Marion Brooks was called, and stated
that he had been on Stewards bond and
had paid Mr.. Watson s66774. Witness
stated that Stewart had betrayed his
confidence.
Stewart was his own and only witness.
He stated that he was 81 years Of age.
AS chief deputy he hsdacharge OF every
thing in Watson's offf5e; he wac also
bookkeepsr when he found time, but
there was so much to do that he had
been able to do very little work upon
the books.
Although he worked in the Office
from 1880 a. m. to 5 p. M, he was
always obliged to return to the Office in
the evening to attend to the correspond
ence. Although having charge of the
money, it was received by anyone who
happened to be in the Office at the time.
Bookkeeper Peterson had received most
of it.
Deputies Harmon and Palomares also
received moueys. During the first
months of his holding Office he had
found discrepancies in his cash account
two or three times week, in amounts
varying from 81 to 500. On each occs-
sion witness reported to Mr.. Watson,
and said he could not find out who was
doing the stealing.
He was in the habit of loaning out the
public money with the full knowledge
and consent of Watson. Watson him
self had on one occasion told witness to
let Gripman Taylor have what money
he wanted. He gave him 500 or 800,
and day later 500 or $50 more.
On another occasion Watson told him
to let Wooley have what money he
needed.
Witness had frequently advanced
money to Watson himself.
When the expert investigation began,
Watson instructed him to loan no more.
At that time there was between $500
and 5000 owing to the Office by people
who had borrowed public funds. Wit.
ness was informed that he himself was
liable for the money loaned out, and he
tried to collect the outstanding debts,
but Watson was the only one who would
pay up. Being unable to replace it, wit
| II
mended him to friend, from whom
witness tried to borrow the money upon
! his salary warrants at discount, but in
this he failed. On the evening of Sep
TENDER 18th he was informed that the
grand jury would indict him, and
that he would be arrested for
the shortage. He believed it, and
left town. On the afternoon there
was about $500 in the safe. He took
this sum to deposit in the Farmers and
Merchants bank. Witness found he vas
too late, and slipped the money into his
pocket. That night, hearing he was
probably to be arrested, and under the
influence of the great mental strain, be
packed his grip, intending il possible t0
get to Chicago and borrow the money
owing to the Office. He bought ticket
for San Antonio, Texas.
When at Banning witness discovered
he still had the money he intended de-
posting in the bank. He had also SAC
of his own money with which he paid
his expenses, the entire amount in his
possession amounting to 5000. Twenty
one miles this side of Ell Paso an officer
boarded the train and arrested
him. Witness took off the belt
in which he had placed his money
and gave it to the officer for safe keep
ing. When settlement was made
with Detective Auble. Chief of Police
Knox only returned $3.50 out of the $500
witness had had.
Witness then declared he had never
appropriated dollar of the public funds
for his own use and did not intend TAX
ing the $500 with which he lett town.
The case will be argued this morning
and the case given to the jury.