The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1905-10-13
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School superintendent and Bank
President Arrested on Charges of
Forgery and Embezzlement.
Peoria, ILL.,. Oct. 6.-Professor New
ton c. Dougherty, superintendent of
city schools of Peoria for more than
twenty years, president Of the Peoria
National bank, and a capitalist, has
been arrested on two true bills re-
turned by the grand jury, charged
with forgery and embezzlement. The
arrest followed an investigation re-
sulting in the discovery that there is
shortage of ut least 100000 in the
school fund deposited in the bank. The
investigation covered only the period
from January, 1903. The grand jury
will now, it is stated, investigate the
entire record of Professor Dougherty
as superintendent of schools, and it is
believed that a much greater shortage
will be found.
Professor Dougherty was first ar
rested on a charge of forgery, the
specific charge being that he had
forged voucher for $164.5O for coal
He promptly furnished $4,000 bail. The
indictment and arrest on the charge
Of embeZZlement followed, and on
this charge Professor Dougherty fur
nished $1,000 bail. Following his ar
rest on the charge of forgery Profess
sOr Dougherty sent in his resigna-
rions as president and director of the
Peoria National bank and as superin-
tendent of schools.
AS direct result of the Indictment
Of Dougherty the directors of the Pc
Oria National bank, of which he was
president, announced shortly after
midnight this morning that they had
decided to discontinue business, and
would call in the comptroller of the
currency to wind up the affairs of the
institution. The meeting of directors
lasted all evening behind closed doors.
1t was admitted that a disastrous run
would be inevitable today and the only
recourse was to liquidate at once.
Peoria, Ill.,, Oct. 9.-The closing Of
the Peoria National bank, brought ON
by the indictments against Newton G.
DOugherty, resulted in runs on the
Dime Savings bank and the Central
National bank. Dougherty is large
stakeholder in the Dime Savings bank.
Hundreds of depositors, majority Of
them women and girls, crowded into
it's offices and demanded their money,
while others, unable to get in, were
massed on the sidewalk waiting for
their turn.
Dougherty declares that no one will
lose dollar by his operations, that
the putting up of securities by him is
not a confession of any guilt on his
part. Meantime the grand jury is find
ing indictments against him at an ex-
traordinary rate, and expects to find
$50, at least.
Peoria, ILL.,, Oct. 1O.-The grand jury
has reported eighty-four indictments
against Newton G. Dougherty in addi-
ton to the thirteen already found. For
ty-five Of these are for forgery, each
containing six counts. The amounts
involved are from $14.40 to 5000.
Bonds are fixed in the sum Of ST.
600 on each Indictment for forgery
and for $500 on each for embezzle-
ment, making a total of $64, 800. Jo-
seph Well Dougherty's attorney an
nounced that he would appear in court
Of his own accord.
Later in the day Dougherty gave
in the county jail. He was unable to
give the ball. and his attorneys said
that he would probably have to re-
main in jail until time for his trial.