The San Francisco call., 1903-12-19
'KOWEN CASE
SLOWLY DRACS
University Officials Await the
Findings of Experts Now at
Work on SecretaFy's Books
AUDITOR HERR ARRIVES
He Believes That Amount of
Defalcations Is Much Less
Than Has Been Estimated

Auditor J. J. Herr's arrival from Los
Angeles was one Of yesterdays inter
esting developments in the investiga-
tion- OF Secretary william A. McKow-
ems wholesale embezzlement Of State
University funds. For many years Mr..
Herr has audited the secretary's ac-
counts and reported his findings to the
finance committee of the Board Of Re
gents. and it was confidently expected
that his presence at the university
would serve to bring 80 light the exact
amount Of McKowen's peculations and
his method Of pilfering. But from those
two very important points there has
been no lifting Of the haze by Mr.. Herr.
Accompanied by President Wheeler
and Chairman Of the Finance Commit
tee Foster, the auditor spent about
two hours inspecting the books at
which Norman McLaren and his assist
ant are so industriously probing, but
at the conclusion Of the inspection Mr..
Herr's report was a repetition Of the
old story;
we must wait for the findings Of the
experts"
From his cursory examination, how
ever. the auditor was inclined to be-
Iieve that McKowen's total shortage
will not turn out TO be as much as $40,-
600. the estimate Of Regent Britton.
McKowen's own estimate of $4,000 is.
according to Mr.. Herr's opinion, nearer
the actual figure.
WORK OF THE AUDITOR.
The auditors last report was submit
ted TO the finance committee on jan
uary %, 1903. and il approved all the
books and vouchers examined by him.
But il has been ascertained that Nc
Kowen presented no account Of the
scholarship or fellowship funds or the
medical college fees, so that the audi
tor had no opportunity TO ascertain
whether those items Of income had
been honestly handled.
II has. beer. discovered, also, that the
auditor repeatedly expressed desire
10 examine the university accounts
every three months instead Of once a
wear. and that he had been prevented
doing so by McKowen pleading inabil-
it-- 10 have his books ready for inspec-
ton.
Yet the auditor never suspected that
ATcKovVen was dishonest, but attrib-
uted his delay in getting ready for in
epection 10 the fact that he kept all the
books himself instead of intrusting the
task or any share Of it to a subordi-
nate.
Nor did AIr. Herr believe that the
financial system Of the university was
either antiouated or defective. No sys-
TEN could be perfect. he Opined, unless
II is operated by an honest man under
the supervision Of honest men.
In the fixing Of blame for McKOwen's s
defaIcation the auditor does not spare
the scholarship donors who made their
checks payable to him personally, in
stead Of following the usual course Of
sending the money 10 the treasurer and
obtaining his receipt for it,. AS the gen
eral fund IS thus placed in the hands
Of the treasurer. and is thoroughly
safeguarded. Mr.. Herr does not believe
that McKOwen pilfered any Of that
fund. but confined his stealings exclu-
sively to the scholarship and fellow
ship moneys and medical school fees.
But that theory. does not explain how
McKowen managed TO pay in the
scholarship ana fellowship funds as
they became due and stiH contrived- 70
embezzle at least $4,000.
AN OFT-HEARD ANSWER.
Where did he get the money to make
good the scholarship and fellowship
funds as they became due? That ques-
ton stumps every one connected with