The Worthington advance. [volume] (Worthington, Minn.) 1874-1908, 1905-10-13
JURY Jun I I | D ! 4
PROMINENT. MAN
BETRAYAL OF TRUST CHARGED
h AGAINST PROF. DoUGHERTY,
OF PEORIA, ILL.
Indicted for Forgery and Embezzle-
5,, ment Of School Funds-Accused Is
Leading Banker and Capitalist, as
Well as Famous Educator.

Leading Banker and Capitalist, as
Well as Famous Educator.
( Peoria, ILL.,, Oct. 6.-Prof. Newton c.,
,Dougherty, superintendent of city
schools Of Peoria for more than 20
years, president of the Peoria national
bank and a capitalist, was arrested
Thursday on two true bills returned by
the grand jury, charged with forgery
and embezzlement. The arrest follow
ed an investigation by the grand jury
Of charges brought against Prof.
Dougherty that the accounts OF. the
school funds, which were deposited IN
the bank of which he was president,
were being manipulated. The inves-
tigation resulted in the discovery that
there was shortage of at least $780,
1000. The investigation covered only
the; period from January, 1903. The
grand jury will now, it is stated, inves-
tigate the entire record of Prof. Dough
erty as superintendent of schools. and
1t Ia believed that q much greater
shortage will be found. Prof. Dough
erty was first arrested on charge OF
forgery, the specific charge being that
he had forged voucher for $164.5O for
coah He promptly furnished $4,000
bail. The indictment and arrest on the
charge of embezzlement followed In
i, the afternoon, and on this charge Prof.
Dougherty furnished $1,000 bail.
T . Community Shocked.
The Indictment came as a shock to
the community. Dougherty has been
looked upon as a man of sterling prin-
ciples and the soul of honor. and his
name is household word among Peo-
rians, who have returned him so long
as school superintendent. He has been
reputed wealthy man. He owns ex-
tensive real estate and considerable
western land, and is interested In sew
eral factories and financial institu-
lions. After the indictment Thursday
he resigned as president Of the Peoria
national bank, upon which a small run
had commenced as q result of his in
dictment, and also resigned as city su-
perintendent of schools.
~ Man Of RICH Standing.
Mr.. Dougherty has been city SUPER
intendent Of schools for rs years. He
lis Immensely wealthy and is president
of the Peoria national bank, is q heavy
stakeholder in the Dime Savings and
Trust company, the Title and Trust
company, the Peoria Livery company
fbov Yo 10 q frlvcfao
Of the fund OF $175,00o held by the
| National Educational association and
is past president of the association.
He is a close friend of Nicholas Muir
ray Butler, president of Columbia uni
versity, of New York, and has been
for years regarded as one Of the fore
most educational men in the country.
Bank Closes It's Doors,
Peoria, ILL.,, Oct. 7.-As a direct re-
suit of the indictment of N. c. Dough
erty for forgery, the directors of the
Peoria national bank, of which he was
president, announced shortly after
midnight that they had decided to dis
continue business and would call in
the controller of the currency to wind
up the affairs Of the institution. The
meeting Of directors lasted all eve
ming behind closed doors. It was adj
mitted that disastrous run would be
inevitable to-day, and the only re-
course was to liquidate at once. The
loan Of 100000 by the Peoria clear
ing house was tied up in such wise
that it could not be accepted. It was
learned that quiet Withdrawals from
the bank had been going on all DAY,
most of the calls coming from banks
in neighboring towns. The bank was
capitalized at $2O0,o0o. The bank will
not be open for business to-day, and a
representative of the controller is ex-
pected from Chicago before noon.
g., Defalcation Growing.
Peoria, ILL.,, Oct. .9.-The most start
- II. ~ Sv4I3 n%x a