The Minneapolis journal., 1905-10-06
5 SCHOOL
SCANDAL GROWING
Two Hundred Indictments Prob
able Against Dougherty, the
Prominent Educator.

Peoria, ILL.,, Oct. GA total of thir-
teen indictments have thus far been re-
turned against Newton G. Dougherty,
city superintendent Of schools and pres.
ident of the Peoria National bank.
Three of them are for rembezzlement
being drawn by the state IS attorneys
office. It was announced from that Of
fee today that the total would reach
more than two hundred. The bail re-
quired for those thus far returned is
Mr.. Dougherty is in receipt Of mes
sages from all over the country. many
Of them expressing sympathy and be-
lief i'll his innocence.
member of the grand Jury today, hum
dreds Of pieces Of school scrip, which
are alleged to have been changed after
being signed by the president of the
school board, are missing.
A committee appointed by the school
board to continue the investigation af-
ter the grand jury gets thru, announced
today that it would 60 back over the
books of the board 70: twenty years.
are missing, representing, according TO
the cash books, large amounts.
How Steals Were Found.
Edwin J. Schnedy, discount and ex-
change clerk at the Peoria National
bank. the man who discovered irregu-
larities in Mr.. Dougherty's g methods of
handling school funds, made state
ment today:
= took charge of the individual
shortly thereafter began to notice the
queer methods Mr.. Dougherty had OF
handling the funds Of the Peoria school
board. He would make checks paya-
bic to various local firms and give his
personal check for a smaller amount, !
called the attention of the bank Off
cials to this state of affairs and was
informed that it was none of my busi-
ness. I was then transferred to the
discount and exchange department.
"Mr. aDougherty~ would bring IN
checks for large amounts, payable III
most instances to a school furniture
firm in Chicago or a plumbing firm IN
ST. Louis. With these checks he would
purchase New York, Chicago or St
| Louis exchange, made payable to his
own order. Upon examination of the
Endorsements on the drafts | fould thai
in many instances they had been usec
in his private business affairs. In some
cases he would indorse the names Of
local firms on the drafts, without thel1
huUW1tuSO,l puGCIhS LILO oTA AAAoAesAS 49,
der the signature. ~ . S.. ~. e..
Saw Laws Officers.
| ttI laid the matter before Mr.. Cook
the national bank examiner, for this dis
trict Upon his advice I laid the mat
ter before the attorney general a
Springfield. He advised me to taxi
lit to the states attorney of Peori;
county, which did. I. also laid tn
matter before s. O. Spring, cashier O.
the bank. -
transactions Of that kind the1
ceased. In explaining them to me, MI
Dougherty said that he kept three set
Of funds, in New York, Chicago and st
/ Louis. ......-~. 5, .'.... "
i, "When I was called before the gram
jury there were exhibited many change
l checks. In one instance a check
charged to the school fund, had bee
raised from $24 to $2,540.- The stu
showed $24. In another was draw
for $2,760.t The Stub. which had orig
inally read $27, had been raised t
$2,750. The last two figures on tn
stub were in green ink, the first tw
in black. .:< .s. :.
. 81 was discharged from the ban
only last, Saturday."