Evening star., 1905-10-06
BAD FOR DOUGHERTY
l3 Indictments Returned
Against Him Thus Far
IN PEORIA SHORTAGE
10 CHARGES OF EMBEZZLEMENT
AND 8 OF FORGERY.
Expressions of Sympathy Received by
Accused-Statement Of Man Who
Discovered Irregularities.

PEORIA, ILL.,, October GA total of thr-
teen indictments have thus far been re-
turned against Newton c. Dougherty, city
superintendent of schools and president of
the Peoria National Bank. Ten of them
are for embezzlement and three for forg-
cry. Forty more are being drawn by the
states attorneys office. 1t was announced
from that office today that the total would
reach more than 200. The bail required
for those thus far returned is S12,7oo.
Mr. Dougherty is in receipt of messages
from all over the country, many of them
expressing sympathy and belief in his in
nocence. According to a statement made
by a member of the grand jury today hun
dreds of pieces of school scrip which, it is
alleged, were changed after being signed
by the president of the school board, are
missing.
committee appointed by the school
board to continue the investigation after
the grand jury gets through announced to-
day that the committee would go back over
the books of the board for twenty years.
In some cases both stubs and vouchers
are missing. representing, according to the
cash book large amounts.
Discovered Irregularities.
Erwin ]. Schnebly discount exchange
SIcih at Tie TcoIid INdtioldi bdilh, thT
man who first discovered irregularities in
Mr.. Dougherty's method Of handling
school funds, made statement today. He
said:
Il took charge of the individual books at
the bank seven years ago and shortly
thereafter I began to notice the queer
methods Mr.. Dougherty had of handling
the funds of the Peoria school board. He
would make checks payable to various To-
cal firms and give his personal check for
a smaller amount. 1 called the attention
of the bank officials to this state of affairs
and was informed that 1t was none of my
business ! was then transferred to the
discount and exchange department. Mr..
Dougherty,s dealings were carried on as
follows:
He would bring in checks for large
amounts, payable in most instances to q
school furniture firm In Chicago or q
plumbing firm in st. Louis. With these
checks he would purchase New York. Chi
cago or st. Louis exchange. made payable
to his own order. Upon examining the in
dorsements on the drafts / found that in
many Instances they had been used in pri-
Vate business affairs.
in some cases he would indorse the
names of local firms on the drafts without
their knowledge, putting his own initials
under the signature, l laid the matter be-
fore Mr.. Cook, the national bank examiner
for this district. Upon his advice l laid
the matter before the attorney general at
Springfield. He advised me to take it to
the states attorney of Peoria county. which
/ did. I also laid the matter before S. O..
Spring, cashier of the bank.
transactions of that kind then ceased.
In explaining them to me Mr.. Dougherty
said that he kept three sets of funds. in
New York. Chicago and st. Louis.
When l was called before the grand
fury there were exhibited many changed
checks. In one instance a check, charged
to the school fund, had been raised from
$24 to 81 450 The stug showed $24. An-
which had originally read $27, had been
raised to s2,750 The last two figures on the
stub were in green ink. the first two in
black. =
II was discharged from the bank only
last Saturday"
Will Not Affect Big Trust Fund.
CHICAGO, October 6.-The shortage of
Prof Newton C. Dougherty. who was ar
rested at Peoria, ILL.,, yesterday on charges
ot misappropriatng school funds and forg-
cry, will have no bearing on the $1S5, 900
fund of the National Educational Associa-
ton, of which he is trustee and past presi-
dent, according to Albert G. Lane, district
superintendent of schools and local member
of the association.
Mr. Dougherty was a trustee and mem
ber of the executive board" said Mr. Lane
last night, but had no voice In the dispo-
the First Trustees Savings Bank of this
city. / had no intimation of his trouble
urtil / learned 1t through a newspaper, but
any shortage on his part cannot affect the