The San Francisco call., 1905-04-27
GRAND JURY
IS STARTLED
BY THE NEWS
Calls Devote Before It
and Hears His
Statement.
Deputy Seems Almost
on the Verge Of
Collapse.

That Tax Collector Smith was a de-
faulter was startling news to Fore
man Andrews of the Grand Jury. That
body has had the Tax Collectors Of
flee under investigation for several
days, but had gained no inkling as to
what Smith had been doing
As soon as he heard that the short
age was discovered Foreman Andrews,
began an investigation and learned of
the shortages that are known.
Neither Foreman Andrews nor Ex-
pert Young could arrive at an accur-
ate estimate of the defalcations. The
rough estimate given out places the
amount at between $4,000 and $69,-
600, approximately.
Devote was in state bordering on
collapse when examined by Foreman
Andrews and it was difficult to get
anything like connected story from
him. He admitted that during the last
twelve months he had cashed for
Smith checks amounting to more than
a quarter of a million dollars. He
will be held personally responsible for
the money that the defaulting Tax
Collector got from the Treasurers Of
flee.
RAILROAD PAYS TAXES.
The Finance Committee of the
Board of Supervisors, consisting of
Supervisors dAncona, Brandenstein
and Payot and Secretary Charles Fay,
We're called into consultation. While
they were puzzling over the manipu-
lation of the money of the Southern
Pacific Company a hint of Smiths
dealings with the Treasurer's office
was found and Devote was called. He
at first declared that only $15,29O 0S
had been secured by Smith, but later
admitted that he believed that $14,-
1856 might also have been taken. De-
yoto was willing to tell all that he
knew, but was in such a nervous state
that it took some time to get a clear
statement from him. r
=. Black Ryan, tax attorney for the
Southern Pacific Company, declared
that the companys installment of
taxes had been paid in full and that
Smiths personal receipts had been re-
ceived for $39.113. The money was
paid to the Tax Collector in the fol-
s6694 Sc, and on April Is, $9424 412
and $3.50 "a. These checks were
cashed by Smith and form the largest
items of his defalcations.
Ryan declared that he knew of moth
Ing wrong until he received a tele-
phone message from James McCabe
in the Tax Collectors office asking
taxes.
Why, the taxes have been paid to
Mr.. Smith" he replied I'VE have the
receipts, end the checks we gave him
have been cashed."
A. A. Simpson of the license office
told Foreman Andrews that Smith had
been in the habit of cashing checks for
sums amounting to $500 and $500 in
his department 1t cannot be esti-
mated how much the defaulting cashier
secured in this manner. 1t is not
thought, however, that the total will
aggregate more than $4,000.
COVERED BY BOND.
Members Of the Finance Committee
of the Supervisors declared that they
did not know anything of any shady
transactions in the Tax Collectors of
flee until they were informed that a
big shortage had been discovered The
fact that Tax Collector Smith had been
short $165,0o0 about a year ago and
that the deficit had been made good by
his brother had not been reported to
them.
AS all Smiths defalcations are COW
cred by a 100000 bond furnished by the
National Surety Company of New
York, the Grand Jury, according to
Foreman Andrews, will take no i'm
mediate action in the affair other than
to investigate fully the amount of the
loss. Devote will be held responsible
for the money he gave Smith on the
repudiated check. Devote is backed
by bond of $4,000
The affair is startling" said Fore
man Andrews. 1T is an eye-opener on
the lax methods employed in municipal
offices. Why, If this sort of system
is employed by other departments the
money of the people is at the mercy of
any CRATER.
IF I had known of the previous
shortages in the Tax Collectors Office
the Grand Jury would have accom-
plished the removal of the man from
office ar the time. But I did not have
even an inkling that anything was
wrong. The jury can do nothing now.
OF course, the city will not lose any
thing by the defalcation, but this ought
to open the eyes of the people of San
Francisco. The methods of the Treas
urer's Office will be thoroughly in
vestigated."