Omaha daily bee., 1905-10-06
AUUUOLU UT TUNGLNI l
Superintendent DougAsrty OfPeOriA Schools
Indicted BY erAAd Jury.
sixty THOUSAND DOLLARS SHORT
Examination Shows that Pssulations eOvsr
Many Years
MAY RUN INTO HUNDREDS or THOUSANDS
Order for the Arrest Causes Great sensa-
tion in nlinoiA
NAY RUN INTO HUNDREDS OF THOUSAND
PROMINENT IN EDUCATIONAL woRu
Mr. DOugherty .is Former President Of
National Educational AssOciatiOn
and n Close Personal Friend
of Nicholas VI. Butler.

PEORIA. ILL.,. Oct 5.-Prof. Newton c.
Dougherty Superintendent Of city schools
of Peoria for more than twenty years, pres
ident of the Peoria National bank and a
capitalist, was today arrested on two true
bills returned by the grand jury, charged
with forgery and embezzlement. The arrest
followed 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 manipu-
lated The Investigation resulted in the
discovery that there was a shortage OF
at least $4,000 The investigation covered
only the period from January 1901. The
grand jury, It is stated. will investigate
the entire record of Prof. Dougherty as
superintendent of schools, and II is be
lieved much greater shortage will follow.
First Arrest for Forgery.
Prof. Dougherty was first arrested on a
charge of forgery. the specific charge be-
ing that he had forged voucher for $l64.5O
for coal. He promptly furnished 5000 bail
The indictment and arrest on the charge
Of embezzlement followed this afternoon,
and on this charge Prof. Dougherty fur
nished $500 bail
Following his arrest on the charge of
forgery, Prof. Dougherty sent i'm his resig-
ple's National bank. He also sent in his
resignation as superintendent of schools.
Prof. Doughcrtys arrest created SEN
sation. He has been reputed a wealthy
man, owning much real estate and consid-
erable western land. and is connected with
a number of financial institutions besides
the Peoria National bank.
Twenty-Five Years in once.
Mr.. Dougherty has been city superin-
tendent of schools for twenty-five years.
He is immensely wealthy and is president
OF the Peoria National bank, is a heavy
stocSholder in the Dime Savings and Trust
company the Title and Trust company, the
Peoria Livery company and other concerns.
He Is trustee of the fund of 1880 held
by the National Educational association and
is a past president OF the association. He
is close friend of Nicholas Murray Butler
president of Columbia university of New
York, and has been for years regarded as
one of the foremost educational men in
the country. The news OF his arrest
created the greatest excitement. Although
rumors of the gravest character have been
heard for some time, friends of the
tnancier were loyal to him.
DouEherty Promises Restitution.
Shortly before his arrest and before II
was known that ne would De apprenended
Prof, Dougherty stated that IL the investl
cation showed a shortage that he would
make 1t good He said that he would stay
right In Peoria; that II was here that h'
had been honored, and here he woulc
stand trial. He was seen Immediately
after his arrest, but declined to make any
further statement for publication.
At 129e o'clock he sent In his resignation
as president and director of the Peoria
National bank. The letter was directed I,
S. o. Spring cashier of the bank, anC
stated that owing to rumors on the stree
that he desired to tender his resignation.
The crime for which he was arrested wa
forging a voucher for S1645O for coal al
legged TO have been delivered for schoo
purposes, but which was not delivered
The date of the voucher was March Z, 1905
Immediately following their partial re
port the grand jury Immediately reconvene,
and continued their investigation of tn
school funds.
states Attorney Scholes was out of tn
city but A. NJ. otman first assistant II
the office, and who arranged the detail
OF giving bail, declined to make an,
statement. save that the indictment wa
for forgery and that the case would b
treated just like any other similar Il
character.