The San Francisco call., 1903-12-17
SECRETARY McKOWEN'S REGULATIONS
OF UNIVERSITY FUNDS EXTEND OVER
FIVE YEARS BEFORE EXPOSE COMES

his hands for university use in pay
ment of a private obligation. 1 imme-
diately communicated with all the
members of the finance committee that
1 could reach and requested them to
meet me at my Office at o'clock this
morning 1 was unable to reach
McKowen by telephone, but he came to
my house at o'clock this morning
with w H. Smyth and there confessed
to me that he was defaulter.
Il suspended McKowen from Of
| fee Immediately pending an investiga-
| ton and the action of Governor Par
dee and placed his office temporarily
| in the hands Of Victor Henderson.
then telegraphed to the Governor, who
was supposed to be on his way to Lodi,
to come to Berkeley to meet with the
other members Of the finance commit
tee Of the Board of Regents.
"As yet we have 10 precise idea as to
the amount Of the peculations, but from
what ] have thus far learned it appears
that McKowen, at different times since
1898, has used sums of money that came
into his hands, whether as fees or do
nations and, instead'of depositng them
with the treasurer, has applied them to
his own use. He has been able TO cover
up these thefts by taking corresponding
amounts from the university funds and
charging them as expenditures under
the head of one or the other of the
! funds. He says he has not in any other
way falsifled his bookkeeping by max
ing false entries.
THE loss seems to be divided over
five or six years. So far as we know, or
he knows, III this fiscal year it amounts
TO $4,000. The total amount we do not
know, though when he confessed to me
this morning he said he thought it
would ebe $4,000 or more. He says he
got the money in this way only, and
that he spent it on the race track
ANTIQUE BOOKKEEPING
I'VE are shocked beyond ali measure
at this occurrence. McKowen is a very
likable man. Such an ending could not
have been imagined. Nobody with a
heart could see him now and not be
moved. This is complete ruin.
"One of the troubles that has brought
on this disgrace is the fact that the
system of bookkeeping is completely
out of date. There is an abundant sys-
tenn of checks, but they don't check
Money comes into the hands of both
the secretary and treasurer, one being
in one place and the other some other
place Checks are made out to the sec
retary when they should be made out
to the treasurer Thus the secretary
incidentally comes to have money. He
has been tempted in this case and has
used it, covering up his pecuations by
charging the amount against this fund
or that. This expose 1 hope, will mean
a complete reorganization of this de-
partment, bringing its financial system
into simpler and more stable form
and making it entirely modern
REGENT HELLMAN'S OPINIONS,
1t is the impression of I. w. He'll
man of the finance committee of the
Board of Regents that the funds used
by the secretary on the racetrack were
taken from the amaunts deposited by
students and donations for scholar
ships. Speaking of the reported defal-
cation, Regent Hellman yesterday said
The accounts Of the secretary are
examined every quarter by the auditor,
and I cannot understand why the
shortage was not discovered. No. the
secretary does not collect the rents of
property belonging to the university.
That is done by q rent collector, who
pays the money into the treasury. The
State appropriations do not pass
through the hands of the secretary.
Cash derived from the sale of lands is
paid into the treasury.
Secretary McKowen has been in the
service of the university many years.
He was there as a clerk under Secre-
tary Bonte and served in a similar ca
pacity under Secretary Davis. He was
REQUIRED to give bond when he was
appointed to succeed Secretary Davis.
but it is possible that the bond was
not renewed The affair is most de-
plorable."
The treasurer of the university is I.
w. Hellman Jr. of the Union Trust
Company. He is in New York and will
not be home for several days.
McKowen. completely crushed and
weeping, sat all day in the office with
which he has been connected for seven
teen years assisting the efforts being
made to discover the evidences of his
wrong-doing. He was disinclined to
discuss his affairs at first, but after
ward talked freely about the cause of
his downfall.
THE DEFAULTER'S PLEA.
'I owe all my degradation to the
racetrack," he said, "and let it be les
son to others who may think they may
win fortunes in the betting ring. The
races are not run honestly, and no man
may ever expect to be successful with
them. When the bookmakers lose they
find a way to square themselves. They
have left me without a cent of all the
money took.
81 never intended to take the univer-
sity's or anybody's money. But the
strange fascination for gambling that is
in some men drew me on. A man wins
cents and then he wants to win 10,
and when he loses ne tries to recover
it. If he has taken his employers
money his road to ruin has begun to
run down hill pretty fast. There is
nothing at the bottom but wreckage.
LAS to the future, / have not even