The San Francisco call., 1905-02-03
sen NATORS PROBE
MCKOWEN STEAL
President Wheeler and j. J.
Herr Tell About the For
mer Secretary's Lootings
EXPERT rs CRITICIZED
Committees Questions Show
That Members Object
to Lax Way of Auditing
EXPERT rs CRITICIZED
Berkeley Office San Francisco Call,

Ntfc SCiilCi otiOCe, - 49, -
The ghost of the McKowen scandal
at the University of California walked
this afternoon, when a committee of
State Senators. appointed to investi-
gate the affairs of the university. de-
voted two hours to bringing forth as
much of the McKowen story as two
witnesses could relate. President Ben
Jamin Ide Wheeler and former Auditor
of the Regents j. j. Herr were the
witnesses examined.
"A report that McKowen, now in
San Quentin, would he hailed before
the committee and told to tell just
how he stole more than $4,000 of uni
versity money was declared by Senator
Carter, chairman of the investigating
committee. to be an Interesting but
not valuable piece of information
The committeeman say they have
never had any intention Of using Nc
McKowen as witness.
Senators Carter, Lukens, Selvage,
Iseake and Sanford compose the COM
mittee. Senator Sanford alone of the
members was absent.
First of the party to arrive was the
Regents former auditor. j. j. Herr,
who was relieved of his office soon
after McKowen's stealings were found
out. Herr has sought to prove that he
should not be blamed for Mckowen's
defalcation, as McKowen's books could
not possibly be used as the source of
information of his peculations. Herr
says the finance committee of the re-
gents should have known that Nc
Kowen's books were not kept posted
and that auditing them was, In con-
sequence, impossible fer many months
IN succession.
EXPERT QUESTIONED.
sDIlrfuo tho r.o11rCa of Earr,S
ton questions were asked which ap-
peared to show that some Of the Sena-
tors apparently believe that the very
books which Herr audited and pro-
nounced "all right were used by Re-
gent Britain to find out the exact
amount of McKowen's stealings. This
Herr says could not be-
President Wheeler was the first wit
ness. He told of having been informed,
the day before McKowen made his con-
fession, that the secretary of the re-
gents had given check signed by Mrs.
Phoebe Hearst to a race track book
maker, to settle an obligation. He sent
for McKowen, and urged him to con-
fess his wrongdoing, if he was guilty.
The president said:
l asked him finally whether he had taken
university funds, and he said: II have"
Then followed his complete confession. Re-
gent Britain was sent for, with other re-
Telegraph of the affair. lie authorized Nc, ~
Kowen's suspension, and Mr.. Henderson was
given charge of McKowens books. That is
all, except that Mckowen's conviction in
court followed his confession, and that sub
sequent examination of his books revealed
that he had stolen more than $4,000
President Wheeler knew nothing of
the bookkeeping methods used by
McKowen. He saidehe was not an ac-
countant. That branch of the uniyer-
sity was not under his supervision.
Couldn't You run both ends of the
university?"- asked Senator SeIvage.
and President Wheeler merely smiled
in answer.
Former Auditor Herr, seated in the
rear, alone, followed President Wheeler.
lie was asked a few preliminary ques-
tions by Senator Selvage regarding his
connection with the universitys work.
and replied that he had been auditor
for fifteen years.
LUKENS PROBES.
Herr was then taken in hind by Sem
ator Lukens and questioned regarding
McKowen's style of keeping books and
Herr's method of auditing them. Lux
ems asked questions apparently intend
ed to show that Herr's work had con-
sisted merely in certifying to the aritb
metlcaI correctness of McKowens
DOCKS and papers, without going into
an adequate audit of the bookkeepers
RECORDS. Inc examination ran thus.
How often did you audit these books?'
asked Senator Lukens
whenever McKowen notified me they were
posted up and ready for auditing replied
Sometimes it was three months batuaar
your auditing Neutrality-suspicious. six or
sometimes nine. or sometimes more?'' ouered
Lukens. 41eieu
Yes
Dent you call that sort of touch-and
go system OF auditing to use in checking tha
Lukens. me 'iis sad
that former Regent Halliday. who before -ds his
death In 1000 was chairman of the ananca
committee Of the regents. had authorized him
TO conduct the auditing In this manner
Did you ever inform the regents that NJ
Kowen's books were not posted nm 90 .S
shouid nave been, to permit regular auditing.
No. sir"
why did you not?''
ployeS dia not consider it my duty They en-
posed to have knowledge of his work. "
Senator Lukens, in asking pointed
questions of Herr became a bit en,-
phat1c at times, and finally Senator
sewage, evidently restive, interrupted
to suggest that Herr be allowed to ey-
plain the bookkeeping and auditing
system IN force when McKowen was
secretary, without cross-examination
by Senator Lukens
The cross examination seems to he
hostile, said Selvage, "and it is not
In order The witness hasn't been di-
rectly examined yet. Let him tell his
story, give us his account and then he
cross-examined.''
Senator Lukens disclaimed any hos
tility. said there were no charges
against any one, that Herr was NOT
under investigation. and that the rules
of court could not be used.
STEALS NOT ENTERED.
Chairman Carter sustained Selvapa,s
point and Herr then told with much
technical detail why McKowen's books