The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-10-06
10 INDICTMENTS.
Have Been Found Against Dougherty
and Hundreds Arc Expected.

Peoria, Ill. Oct. "a total of thir-
teen indictments have thus far been
returned against Newton c. Dougherty,
city superintendent of schools and
president of the Peoria National bank
Then of them are for embezzlement
and three for forgery. Forty more are
being drawn by the states attorney
Office. 1t was announced from that Of
flee today that the total would reach
more than two hundred. The bail re-
quired for those thus far returned is
s12,700.
Mr.. Dougherty is in receipt of mes
sages from al lover the country, eX-
pressing sympathy and belief in his
innocence.
According to a statement made by a
member of the grand jury today, hun
dreds of pieces of school scrip which,
it is alleged has been changed after
being signed by the president of the
school board, are missing. A COM
mittee appointed by the school board
to continue the investigation after the
grand jury gets through, announced
through its chairman, J. S. Stevens to-
day tht they would go back over the
books of the board for twenty years.
In some cases both stubs and vouch-
ers are missing, representing, accord
ing to the cash book. large amounts.
Edwin J. Schnebly, discount and ex-
change clerk at the Peoria National
bank, the man who first discovered the
irregularities in Mr.. Dougherty's meth
Cd of handling school funds, made a
statement today. He said:
How 1t Was Done.
Il took charge of the individual
books at the bank seven years ago ana
fshortlv thereafter ! 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 local firms and give
his personal check for smaller
I r Id "a OF nf
bank officials to this state of affairs
and was informed that it was none OF
my business. I was then transferred
to the discount and exchange depart
ment. Mr.. Dougherty's dealings We're
carried on as follows:
HE would bring in checks for large
amounts, payable in most instances TO
a school furniture firm in Chicago OF.
plumbing firm in St Louis Win
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 I found that IN many IN
stances they had been used IN ms
private business affairs. In some cases
/ he would endorse the names of local
firms on the draft without their knoWi-
edge, putting his own initials under the
Signature. I laid the matter DeIOre
! Mr.. Cook. the National bank examiner
/ for this district. Upon his advice
laid the matter before the attorney
4 general at Springfield. He advised me
+ to take 1t to the states attorney OF
/ Peoria county. which I did. I also
/ laid the matter before s c. Spring,
cashier of the bank. Transactions OF
that kind then ceased In explaining
! them Mr.. Dougherty said he kept three
sets of funds in New York. Chicago
and st. Louis.
sfWhen I was called before the grand
/ il1rv there were exhibited many
| changed checks. In one instance
check that wac charged to the school
fund had been raised from S24 &c
s2.450. The stub showed s24.
i Another was drawn for $3.50 The
stub which had originally read 81
two figures on the stub were in greer
! ink, the first two in black.