The San Francisco call., 1908-10-27
MYSTERY STILL
SHROUDS CITY
TREASURY THEFT
Identity of Men Who Stole Big
Sum Battles Searching
Investigation
T0malty Arraigned and Is Re-
manded to Jail Unable to
Secure Bail
State Will Begin Suit Against
Bantel to Recover Lost
Tax Money

Convinced that they have fixed the
culpability for the loss of the states
portion of the $4,000 taxes which
with other funds is alleged to have
been stolen from the city treasury, the
state authorities have practically
withdrawn from the present investi-
CATION and will this morning COM
mence civil suit against former Treas
urer Bantel to recover the money.
The criminal prosecution against ].
c. Ton1alty now devolves on the dis
trict attorneys Office. Up to late
hour last night no light had been
| thrown on the identity OF the man or
men who, the prosecutors say. must
have conspired with Tomalty to loot
the treasury.
Tomaity was taken into court yes
terday morning and instructed regard
ing his rights. He was then taken
back to the city jail. as his attorneys
failed TO secure a reduction in the
amount Of his bond, and he was unable
to furnish $4,000.
Raymond Benjamin. assistant attor-
/ ney general: Jesse Steinhart assistant
city attorney, and A. b. Nye, state con-
I troller. held a conference yesterday
afternoon lasting for several hours
! Later they. held consultation with
Judge Seawell of the superior court
1t was reported that preliminary steps
! in civil suit to recover the states
j portion of the $4,000 taxes paid BY
the United Railroads had been taken
Later it was learned that 1t had been
| decided to let the matter SO over until
/ this morning. when BENJAMIN and
Stefnflart viii ask the court to issue an
make a dernand on the treasurer for
/ the amounts due to the state and city
7 out of the $4,000 taxes paid by the
United Railroads.
so far as the state is concerned. we
are now finished with this investiga-
I tion. said BENJAMIN at the conclusion
of the conference we have fixed
beyond doubt the responsibility for the
states loss and intend to commence
civil suit to recover the money.
Within the last couple OF days we
/ have secured additional evidence that
confirms US in our opinion that we
have taken the proper course in the
matter. Our aim has been to narrow
| the matter down to one administra-
whom to bring suit We are satisfied
with the result of our efforts and will
act.
| FIRST REAL INVESTIGATION
This has been practically the first
thorough investigation of the city's
! financial condition in years. former in
vestigations having been rather per-
/ functory in character. Experts have
now been working on the books day
and night for more than a month.
The state has no interest in the
who stole the money, and is now fin
ished, with the investigation.
| Assistant City Attorney Steinhart
! was reticent in. regard to the matter,
but intimated that he was not fully
satisfied with the results of the in
/ vestigation.
+, Attorney General u. s. Webb re-
turned to the city from Sacramento
/ yesterday, but refused to discuss the
matter any farther than to say that
/ there was absolutely no doubt that
Tomalty had changed figures in the
| books.
/ When Tomalty was taken from the
j city Jail to Judge Cabaniss court. At
i torney Frank Costello of the firm of
Costello & Costello addressed the court
saying that his own firm and Attorney
+
defendant.
Costello Immediately began an argu-
| ment for a reduction in the bail bond of
| $4,000 on the ground that it was Gus
tomary to fix the bail at not more than
double the amount alleged to be in
volved. In reply to this the court re-
fused to reduce the BAIL saying that
Isreliable information which had come to
| him to the effect that more than the
s5605 mentioned in the complaint was
| involved in the case.
| Assistant District Attorney Duke,
who represented the prosecution, resist
| ed any reduction in the amount of bond
on the ground that he had not had time
i to confer with the, district attorney
regarding the matter.
TO ARR tIGN ToMALTY
! The court said that Tomalty would be
/ formally arraigned this morning, at
| which time arguments will be heard in
regard to a reduction of bail.
In explanation of his inability TO fur
nish bonds last night, Tomalty said:
MY relatives have not been able to
arrange for the 100000 bond asked by
the court, although one friend has sig
niged his Willingness to qualify for
| $4,000 have numerous friends who
would come to my assistance If asked
them / think, although they have not
got very much wealth. but do not like
to ask them. / hope, however, to get
the matter fixed tomorrow, as this is
| the first time 1 have ever been in Jail
in my life and / am not fond OF the
place"
Toma1ty was asked if he had any
thing further TO add TO his former
statements since he has been in jail.
j II am ready to face this charge at
any time he replied "and want to go
i to trial right away. I have done MOTH
i ing wrong and. am willing to leave the
matter to IL honest men to decide If I
i am innocent or guilty. I have no fear
i of the outcome of a fair trial."
i In Mrex1Iv to nllesfionS TnmaIfv cor