The San Francisco call., 1908-05-28
FIND NO TRACE OF
MISSING $37,5H
investigators Discover Laxity of
Methods in Office of City
Treasurer

The mystery surrounding the disap-
pearance of sS7,572.7s from ths-city
treasury remains unsolved. and the
deeper the probe of the investigators
goes the more complicated becomes the
situation. But one fact is established
the money has vanished. Through
whose agency is a question the finance
committee of the supervisors would
like answered
The investigation yesterday showed
that the affairs of the treasurer's Of
fee are conducted in a lax and unbusi-
nesslike manner and it is not improb-
able that Treasurer McDougald will be
called to task by Mayor Taylor Nc
Dougald and John J. Greif, one of the
chief deputies in his office, and whose
testimony is badly needed by the su-
pervisors, are with the grand parlor of
the Native Sons in the Yosemite val
ley, while c. b. Perkins. the cashier
is attending a convention in Philadel-
phia- Perkins is also wanted q a wit
ness. as he was cashier at the time
the missing money is said to have been
paid into the treasury.
That McDougaId. Greif and Perkins
have absented themselves from the city
at this time and left the office and
$4,000. GOO of the tax payers money in
the custody and control of petty clerks
has provoked unfavorable criticism
The finance committee of the board
feels that municipal funds are not
properly guarded and they will de-
mand that more care be given to the
conduct of the office The dereliction
is considered particularly fragrant. as
both McDougald and Greif were aware
that the office was being investigated
when they left for the Yosemite.
MANY WITNESSES HEARD
W. ". Douglass, former deputy state
controller; William Brobeck, former
assistant city attorney; Louis Devote,
who was chief deputy, and !. Vert
heimer, book keeper of the treasury in
1908: former Treasurer Bantel; B.
Wentworth, book keeper in the audi
tors office, and J. G. Saulman were the
witnesses examined yesterday by the
finance committee The testimony
given by them tended to prove that the
check for s364.572.79 given by the
United Railroads to pay the taxes of
the corporation had been deposited in
the city treasury by Greif November
80. 1908.
Despite this fact, the daily report
made to the auditor showing the treas
ury receipts accounts for but $685.
S52.S6 on that day. Douglass said that
he received s133,o00, the states share
of the taxes, from Tax Collector Smith,
who gave him personal check for the
amount Douglass Immediately had the
check certified by the Union trust COM
pany on which it was drawn, and
turned it over to the Bank of Califor-
mia. The money was collected and paid
into the state controllers office De-
cember 3.
A strange feature OF this transac-
tion is that Douglass says he received
the check from Smith November 80,
while a copy OF the receipt given by
him bears date of December 1. Vert
heimer recalled the transaction con-
neoted with the depositing of the
United Railroads check In the treasury
and said he was positive that he cred
tied the several funds interested with
their shares of the money, but could
not recall the amounts.
SOME SUSPECT SMITH
Despite this testimony there is evil
dence to show that Tax Collector
Smith did not deposit the city's por-
tion of the taxes until February z
1904, while copy of a. receipt given
to Smith for this money bears date oi
December 1, 1903. Instead of placing
his collections in the treasury eecl
day Smith was in the habit OF deposit
ing the money in his own name in q
private bank and continued to do sc
until exposed by a newspaper
The publication OF this irregular
method of conducting the city's bust
ness caused an Investigation and Smith
on February Z. 1904, was compelled tc
deposit sis4 900 in the treasury. This
newspaper article, which Is in tn,
possession of Soulmsnn, contains copies
of the receipts given to Smith and
Douglas and they are dated Decem
ber 1, 1903, one day later than Wer
! theimer says the original check wa
deposited in the treasury.
The auditors books showing th'
daily receipts acknowledged by tn,
/ treasurer in 1904 escaped the fire
They show that in November. 1903
! there was $368,526S7 to the credit o
the county clerks special fund
SIS, S,334.21 in December; 0,000.47 ii
January. 1904, and S5,132.15 in Febru
ary. The same books show that OF
November 30, the day on which th'
railroads check for s364,572.79 Is sal.
to have been deposited, the report t,
| the auditor showed the receipt of blu
s339,S52.S6. 1t is believed that un
missing sS7,572.79 the money never
| reached the treasury.
/ AWAIT CITY TREASURER
Until McDougald and Greif return Il
| the city the investigators will be un
able to proceed. Greif is said to hav,
deposited the original check for tn,
| county clerk, and there is the testi
mony of 4. ]. Casey, who was a dep
uty in the county clerks Office at tn,
time, that Greif told him OF the trans
/ action.
Casey said that he and Greif wer,
engaged by the indemnity compan n,
4 that had given bonds for A. B. Ma
| honey. the county clerk. to look after
| the finances of the office and to Sc,
that the money transactions were KEEP
straight. 1t was under this arrange
ment that Greif told him of depositins
| the check. The committee now need
Griefs testimony relative to what dis
position he made of the check afte
it had been turned over to him b,
Judge Seawell.
The fact that Tax Collector Smitl
! die not pay the city's money into tn,
treasury until February Z, 1904, not
withstanding that he is credited witt
having paid it on December /, 1909
gives rise to a suspicion that Smith
who is in the penitentiary at FOLSOM
L. l.