The San Francisco call., 1898-01-04
Discounted Warrants Issued by Order Of the Board of
 Education.
PUNISHMENT IS SEVERE.
Offender Subject to a Fine Of 5000 and Disqualified From Hold
 ing Office.
Special Dispatch to The Call.


 LOS ANGELES, Jan. 3.-Another member of the Board of Education of the city of Los Angeles has been found to have gone wrong. This time it is a gentleman who has heretofore stood with the very best in social, financial and religious circles. And in his fall he may carry down with him one of the best-known financial establish ments of the city-the Southern Cali fOrnia Savings Bank, of which institu- tion he is the president
 J. H. Braly, the individual in Ques- tion, was elected as a member of the Board of Education on the strength of being one of the simon-pure candi- dates of the League for Better City Government. The only other nominee of the league elected a member of the Board of Education was Charles Cas- sat Davis. It is this league that has been directing the prosecution against Walter L. Webb, who was acquitted in the Superior Court of the charges made against him of having received "blood-money' from employees of the School Department.
 The offense of which Braly has been guilty, as proved by documentary evil dence on file among the records of the City Auditor, is punishable by impris- onment in the State Prison for not more than five years, or by a fine of not more than 5000, and forever dis qualities him from holding any office in the State. Incidentally he involved the bank of which he is the president in @ transaction that may cost that institution it's right to do a savings bank business. The officers and direc- tors of the bank are: J. H. Braly president; Simon Maier, vice-presi- dent; M. D. Woolwine, cashier; A. H. Braly, secretary; J. M. Elliott, H. Jev- ne, c. w. Gates, Frank A. Gibson, w. c. Patterson.
 On October 26, 1897, Miss M. E. O'Brien of San Francisco put in a bill against the School Department for thirty Lintells maps of California, charging $225 therefor This was as- signed on the same date to the South ern California Savings Bank. On No vember S, 1897, this claim was ap- proved by J. H. Braly and W. F. Poor Of the Finance Committee of the Board of Education. Warrant No. 12,- 22l was issued in settlement of this claim, and it was paid on December 14 On the back of the warrant is this in- dorsement: Received payment, So Calif. Saw. Bank, by A. H. Braly, Secy." A. H. Braly is a son of the president of the bank. The Auditors receipt is signed in the same manner
 As member of the City Board of Education, J. H. Braly violated sec tion 923 of the Political Code, which reads as follows:
 The State Treasurer and Controller. the several county, city or town officers of this State, their deputies and clerks. are prohibited from purchasing or selling. or m afr-ir or benefit of any person or persons what ever, any State, county or city warrants script, orders, demands, claims or other evidences of indebtedness against the State or any county or city thereof ex- cept evidences of indebtedness issued to or held by them for services rendered as dences of the funded indebtedness of such State, city, town or corporation.
 Section T of the Penal Code pre- scribes the penalty for a violation of the foregoing law as follows:
 Every officer or person prohibited bv the laws Of this State from making or be- ing interested in contracts. or from be- coming vendor or purchaser at sales. or rom purchasing script, or other evil dences or indebtedness, who violates any Of the provisions of such laws. is punish- able by fine of not more than one thou sand dollars, or by imprisonment in the state prison not more than five years, any office in the State.
 The Southern California Sevings Bank violated subdivision of section 574 of the Civil Code in purchasing the claim of Miss O'Brien. This is as follows:
 No corporation shall purchase, hold or convey bonds, securities or evidences of indebtedness, public or private, except bonds of the United States, of the State of California, and of the counties cities or cities and counties. or towns of served fund paid in of not less than three hundred thousand dollars.
 The capital stock paid in of the Southern California Bank is s50,O0O, so that 1t does not come within the ex- ception which includes only corpora uons that have "a capital stock or reserve fund paid in of not less than three hundred thousand dollars"
 For thus violating the law governing the manner in which corporations may invest their money the bank is liable to prosecution under section S03 of the Code of Civil Procedure, which pro- vides for the involuntary dissolution of corporations as follows:
 An action may be brought by the At torney-General in the name of the people of this State upon his own information or upon the complaint of private party against any person who usurps intrudes into or unlawfully holds or exercises any public office civil or military, or any franchise within the State. And the At torney-General must bring the action whenever he has reason to believe that any such office or franchise has been usurped, intruded into or unlawfully held or exercised by any person, or when he is directed to do so by the Governor.
 J. H. Braly represents the aris- tocratic Fifth Ward in the Board of Education. He is about 62 years of age, and his family moves in the creme de la creme of society here. He is a prominent church member. He is a native of Missouri, and came to Cali fornia in the spring of 1S49 and has re- sided here ever since. He was educated at the University Of the Pacific, in Santa Clara County. He taught school in this State for twenty years, and vas for eleven years vice-principal of