The San Francisco call., 1905-05-01
TRACE SMITH
CROOKED DEALS
.
Jury Finds That Defaultel'
Had S2,OOO,OOO of City's
Money Under His Control
WILL ADVISE REFORMS
Grand Jury Is to Recommend
Some Sweeping Changes in
Various Municipal Offices

Edward ]. Smith, the defaulting Tax
Collector, at one time had $2,000.00O of
the ctiy's money deposited in banks.
Al. any time he could have drawn part
or all of it,
This startling fact was revealed Sat
urday at the meeting of the Grand
Jury, when representatives of the
banks In which the money was depos-
tied were questioned. The largest sums
were held by the Union Trust Com
pany.
That these vast sums were juggled
by James j. Smith for his own ends Is
known to the Grand Jury. The bank
men who testified Saturday gave all
the facts and dates concerning the
manipulations. Smith had co-conspira-
tors in the deals-the jury is certain of
/ this and will not rest until they are
.unmasked. The men who were with
the defaulting Tax Collector in these
criminal acts will be behind prison
bars when the Investigations are COM
plete.
An immediate result of the investiga-
tions will be the instituting of new
systems of work in the Tax Collector s
office, the Treasurer's Office and the
Auditors office. Immediate recommen-
datfons will be made for sweeping
changes Foreman Andrews said:
political office had 81 600 600 of the peoples s
money under his direct control. The wonder
is that the defaulting Tax Collector did not
take more. Under the system that still exists
he could have made away with the entire
81 600 600 The existing state of affairs in the
and t6e ofee % the s 0fnoe me-
mediately.
The laxity in the matter of bonds for
clerks who are handling the city's
money will be corrected. This was
pointed out by Expert Douglas Young.
1t is brought to the notice of the Grand
Jury that Louis A. Devote, who cashed
the defaulting Tax Collectors personal
check for SIS, ,290, is only under bonds
for $4,000. While 1t is certain that the
! money will be restored Foreman An
drews will insist that the city shall be
protected more thoroughly in future.
James McCabe, who has been ap-
pointed by Mayor Schmitz to succeed
! Tax Collector Edward ]. Smith, and all
| the employees of the office, will again
be called before the Grand Jury to-day.
Smiths stealings and crooked manip-
ulations of the city's money were SO
complicated that the matter of tracing
them is exceedingly difficult.
There are heads to fall In the Tax
Collectors office. the Treasurers Office
and the Auditors Office. In the opinion
of Foreman Andrews there are several
e1I1plOyGS Oh IQeSe departments VINO
! were criminally negligent of their du-
ties. In the Tax Collectors Office there
are several who have been drawing pay
| and doing no work. The Grand Jury
will insist that these be thrown out.
The recommendation made by Expert
Young that the books in all the city
offices be audited will no doubt be acted
upon shortly. The Finance Committee
will again ask that $4,000 or more be
devoted to the purpose. This demand
was made by the committee last De-
cember, but 1t was vetoed by Mayor
Schmitz. Only $4,000 was allowed for
the work.
The Grand Jury will meet again this
morning to resume its Investigations
A strenuous effort will be made to
! trace the conspiracy believed by the
jury to be behind the alleged shortage
of s165. 900.
John R. Smith and James B. Smith
will be called to answer. to battery
charges to-day for their assault on
Photographer George Haley.