The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1905-10-13
CHARGE BETRAYAL OF TRUST
HEAD OF PEORIA CITY SCHOOLS
TWICE INDICTED.
Accused of Forgery and Embezzle-
ment in Large Sums-Is Leading
Banker and Capitalist.

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 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 investi-
cation resulted in the discovery that
there was a shortage of at least $780,
900. 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
it is believed that a much greater
shortage will be found. Prof. Dough-
erty was first arrested on a charge of
forgery, the specific charge being that
he had forged voucher for $164.50 for
coal. He promptly furnished $4,000
bail. The indictment and arrest on
the charge of embezzlement followed
in the afternoon, and on this charge
Prof Dougherty furnished $1,000 bail.
Mr.. Dougherty has been city superin-
tendent of schools for rs years. He is
immensely wealthy and is president of
the Peoria national bank, is a heavy
stakeholder in the Dime Savings and
Trust company, the Title and Trust
company, the Peoria Livery company
and other concerns. He is a trustee
of the fund of $I75,000 held by the
National Educational association and
Is a past president of the association.
He is a close friend of Nicholas Muir
versity, of New York, and has been,
for We: rs, regarded as one of the fore
most educational men in the country
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 mid
night that they had decided to dis
continue business and would call in
the comptroller of the currency to wind
up the affairs of the institution. The
meeting of the directors lasted all the
evening behind closed doors. It was
admitted that a disastrous run would
be inevitable here and the only re.
course was to liquidate at once The
loan of 100000 by the Peoria clearing
house was tied up in such wise that
1t could not be accepted. 1t 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 100000.
Peoria, ILL.,, Oct. 1O.-Newton G.
Dougherty, former superintendent of
schools and bank president, Monday
night occupied prison cell. He, did
not try to give bond on the "a indict-
ments which were returned by the
grand jury against him in the after
noon, but as soon as he learned that
the jury had made a report and that it
had indicted him he entered a carriage
and drove directly to the county Jail
Shortly before three o'clock the
grand jury reported "a indictments
against Dougherty, in addition to the
Ii already found. Forty-five of these
are for forgery, each containing eight
counts; 80 are for embezzlement, each
containing six counts. The amounts
involved are from $14.4O to $500. Bonds
for the indictments were fixed by Judge
Worthington at approximately $49, 700.