The San Francisco call., 1905-02-24
WOULD HAVE
THE REGENTS
REPAY LOSS
Senate Committee
Scores College
Board.
Special Dispatch to The Call.

SACRAMENTO, Feb. 23.-Condem-
nation of the financial methods that
nave obtained in the past and still
obtain in a measure at the University
o1 California is contained in a report
hied to-day by the Senate committee
that recently investigated that insti-
tuition. The Regents come in for un-
sparing criticism and the committee
recommends that, notwithstanding the
TACT that they serve the State without
pay, their carelessnesS that enabled
fCrmer Secretary w. A. McKowen to
embezzle more than $50,U00 was so
giaring that they should be held liable
Tor the entire loss and that proper
proceedings be taken to obtain re-
endorsement.
The committee further brings to
Light the startling fact that the univer-
stty is about to lose between $4,000
ana 100000 on a mortgage through
The carelessness of a former attorney
OF the institution, not named, though
1T cannot be told at this time whether
or not the loss will prove q total one.
The committee was composed of
Senators Carter tchairman), Lukens,
lieeke, Selvage and Sanford. After set
ting forth the details of the financial
system that prevailed at the univer-
sity at : the time of McKowen's de-
falcation, it goes on to say.
LOOSE METHODS FOUND.
Secretary w. A. McKowen kept the books
OF the Board OF Regents and so far as the
evidence discioses there was no supervision
exercised over him by the Regents or the
president of the university with reference TO
keeping the accounts and the receipts of money
Board of Regents employed John j. Herr to
make an occasional examination of the books.
The testimony of Mr. Herr on this subject was
10 me he
asked to by the secretary himself and that
he was often delayed and put off in the ex-
animation by the secretary on his excuse that
the books were not posted up and ready to
be audited.
After each examination of the books made
by the auditor he gave TO the Regents GER
tificate of his examination, naming therein
the books that he had examined. which, in all
cases. he reported he had found to be correct.
Auditor Herr made no report of shortage or
defalcation by the secretary.
one year, extending from December 1902, to
the time of the defalcation in December, 1908.
The testimony shows that items appeared in
ceived by the secretary that were not entered
in the cash book in which entry should have
been made. In one particular instance. an
item of $780, donation to the university by
the Emanu-El Fellowship in Semitic Ian
guages was given to President Wheeler and
by him reported to the Beard Of Regents at
their following regular meeting. The item
appeared in the minutes of the board hav
ing been received by President Wheeler and
payment of the same to the secretary. A
Pre- per auditing of the books would have dis
closed the omission and put the auditor and
finance committee OF the Regents upon in
vestigaton of the accounts.
Another instance in which the Irregularities
of the secretary could easily have been dis
covered Is found in the statement received
from the treasurer of the Regents oretliting
donation by Claus SpreceKls to the univer-
sity. amounting to $11,675 50. The item was
erased by pen mark through IL and changed
to read: Medical department fees.t The
changed words were in different handwriting
and different colored INK and. by the testi-
mony of Mr.. Herr proved to be in McKowens S
handwriting. This change had the effect Of
placing S11, 675 SO to the credit of the medical
department. funds. from which the secretary
had been stealing for several months past.
In relation to this fund tlte seeretary's books
showe4 that there charged up TO 1t
sum approximate ting Sill 0G0 between the months
of January and March. 1903, while there was
no money whatever credited to the fund until
the Claus Spreckels warrant diverted to
meet the payment of that fund.