The San Francisco call., 1905-04-27
Continued from Page 1. Column 8.
learn the exact amount for which it

learn the exact amount for which it
would be liable.
From all appearances Edward Smith
planned TO make a cleanup before
leaving the city. Last Thursday morn
ing he presented to Chief Deputy
Treasurer Louis A. Devote a personal
check on the Crocker- WoolWorth Bank
for $l5.o90 OS and received bills and
coin for the amount. Smith told De-
Voto that when the United Railroads
sent UP silver to redeem the check in
payment of its taxes, then the check
was to be given to it. Devote thought
the transaction a regular one and did
not hesitate to give Smith the amount
OF the check. When the check was
presented at the bank Devote was
thunderstruck to hear that there were
no funds to Smiths credit Devoto's
part In the transaction was made the
subject of an inquiry by the Grand
jury yesterday afternoon. Devote said
he was perfectly honest in the
isfactorily explain why he had
cashed personal check Of Smiths. He
has come to the conclusion that he was
deceived by a man whom he considered
one of mis- best friends. This transac-
tion would appear to increase the
shortage to $54,703 sc, and may in
volve the Treasurer's office in the
meshes of the case. 1t would seem to
snow that laXity was shown in the sys-
tenn of collecting taxes by check, OF
which Smith took advantage.
DEVOTE CAsHES CHECK.
Devote said that Smith came to him
last Thursday morning and told him
he wanted him to take $50, $50 0s in sill
yer from the United Railroads in pay
ment Of it's taxes, at the same time
q
amount. I'evoto told Smith that he
could not take so much silver, as he
had already taken S3o, 900 from the
company at Smiths request. At that
time Smith telephoned to Treasurer
Starr of the United Railroads in De-
Voto's presence, telling Starr just what
denominations of coin to send to the
Treasurer's office. When Devote re-
fused to take the s30,590 08 in silver.
Smith took the check back and gave
him the check for $I5,5 $50 eS which De-
voto foolishly cashed. Whether Smith |
cashed the check for $50, $50 0S will not
be known until further investigation
but If he did the money will swell the
shortage to that extent The apparent !
shortage on the Tax Collectors books
is $39,113 2S, but the Juggling of big !
checks Dy Smith has complicated mat
ters.
Treasurer Starr of the United Rail-
roads informed Deputy Treasurer Per-
kins that he held receipted bills for all
the taxes of the corporation. A sus-
picious circumstance noted by Starr |
was that when the first $4,000 was paid |
to Tax Collector Smith in silver he
handed Starr the check, saving: Don't
put this in for couple of days. Starr, |
however, put the check through at
once.
FORMER BIG SHORTAGE.
Regarding Smiths shortage Of
10000 last year Deputy McCabe told
the Mayor that the Supervisors, Fin
ance Committee was aware of the
shortage at the time. The Mayor ex-
pressed surprise that the facts had not
been brought to his notice at the time,
as he could have suspended Smith and
averted this second defalcation. Su-
pervisor. Brandenstein, chairman of
the Finance Committee, when inter
viewed said that the committe had no
knowledge of the shortage.
All we knew" said Brandenstein,
was that there was a check for $685.
600 on deposit in the City Treasurer's
office which represented the taxes of
the United Railroads. The check was
drawn on the American National
Bank. We wanted the check cashed
at once and as we could not find
Smith City Treasurer McDougald and
demand for the coin. At first the pres
ident of the bank told us that it was
private check of Smiths and as
sured us that everything was all right
In day or two the money was paid
into the city treasury and the incident !
was closed so far as we were con-
cerned.''
The fact that the check instead of
the money was on deposit in the city
treasury would indicate that Smith
had allowed the bank to utilize the
coin, the check being merely memo
randum that the taxes of the corpo-
ration had been paid, thus preventing
the company from being charged with
delinquency.
SMITH TO BE INDICTED.
1t is said that the Grand Jury was
preparing to indict Tax Collector
Smith last week for irregularities, but
the case was postponed pending the |
fixing of the actual amount of the de- |
in the payment Of taxes. The
indictment will probably be returned |
to-day, which will obviate the neces- |
sity of swearing to complaint. Mayor |
Schmitz notified the Police Depart |
ment to put detectives on the case |
with the view of apprehending Smith, |
but it is thought that he is beyond the |
border by this time.
DColoCo IdhlLS Tic CITY Iu0QS, |
Smith is said to have obtained more |
than $1,000 from 1. Franklin, a money
broker, and also large amount from |
one Mcdonald, broker at Eddy |
street. 1t is said that the Grand Jury |
has been investigating the alleged |
putting through of dummy demands
in the tax Office for salaries last Oc- |
tober and November, whereby some |
$4,000 was mulcted from the city.
Smiths downfall is attributed large
ly to his passion for gambling on horse |
races. 1t Is said that Eddy Conroy, |
who handled combination book at |
the races, visited Smith every morn |
ing for the purpose of placing his bets |
for the day. 1t is said that much of !
the money stolen by Smith went into
the pockets of the bookmakers. Smith !
lived with his wife and little daugh-
Ter at 339 Fair Oaks street. The prop |
Ety belongs to him, but is heavily |
u<ertgaged. He also owns a drug
store at the corner of Eddy and Tay-
l0f&streets. What possessed him to |
IN appropriate public moneys in
trusttd to his care is mystery, in |
view q the fact that his legitimate in |