The Montgomery advertiser., 1908-05-08
A Misappropriation of S29,9OO Charged. HE IS FORMER CITY
 CLERK OF MOBILE Accountants Show How Pecula- tions Were Concealed. Council Meets and Directs City AttOr- ney to Begin Civil and Criminal Action Against Accused--To
 Probe Further.

Mobile May 7.-(Special)--A short age of $29.900 in the accounts of R.. B. Owen. former City Clerk. was reported to Mayor Lyons this afternoon by the auditors who have been at work on the books of the clerks office.
 The Mayor at once called a meeting of the City Council for 6:30 o'clock to- night.
 Later in the evening a warrant charging owen with embezzlement was sworn out.
 When the Council was called to or der this evening by Chairman A. Lyons. there were present Messrs. Craft. Carrell, Hughes. Cashin. Kaver, Stiles. Faith. Norville.. Ward. Tacon and Hale.
 The Chairman announced a message from the Mayor and the message was read. It was short and confined to the submission of the following report of the auditors employed by the City and the Good Government Club to examine the City Clerks books:
 Mobile. Ala, May '. 1908. Hon. P. J. Lyons, Mayor:
 Dear Sir-We beg leave to report that upon examination of the books of R. B. Owen. Jr, former City Cierk, for the period from January 2, 1905. to March 19 1906, both inclusive. we have discovered the following fraudulent en- try was made in his cash book. viz: April 2t, 1905. charge was made on the cash book to loan account Bank of Mobile for $10.000. On February 2s, 1905, a demand loan was made of the Bank of Mobile for s10.ooO and this check was drawn ostensibly to pay that loan, but instead of paying that loan this check was deposited to the credit of the General Council, City Of Mobile In tho Central Trust Company Ca simple transfer of funds for which fr frra lr q v change.) The effect of this entry was tn cover a previous shortage which then existed in his cash. ! Tn addition to the shortage above mentioned there Is a further shortage of siS900 which occurred as follows: September. 1905. charged to interest account paving sB,' $2.500. In March, 1908. charged to interest account paw ing B. March, 1906. $2,15o; March. i9o6. s1 700: March. 1906, $1.0o0; March 1906, Sl, 500; March, 1908, $250. March, l9O6, $500: March. 1906, $9,so0-sl7,4oo To- tai. s1s.9o0.
 eve have examined the coupon book and find that all coupons which have been paid have been pasted in the book.
 "The above charges which appear on the cash book are fraudulent and no such amounts are shown to have been paid out for the accounts to which they were charged. The effect Of these charges, which aggregate $l9.9OO, was to cover an existing shortage.
 we call your attention to the fact that S17, 400 of this amount was charg- ed as having been paid out within the twenty days just prior to his surren-, dering the office to his successor
 "The item of $10.000 above mentioned ed Is the irregularity referred to in the auditors report, which was made to you on April IS.
 "In view of the fact that the neces- sury data for final proof was not then accessible it would not have been prop CT to make a specific charge This makes a total shortage of $29,9OO dis covered so far. If there Is any fur ther shortage in his accounts 1t will he discovered in our subsequent exam ination.
 George T. Rosson.
 ''Wyndham Lyon,
 "J. H. Bruce,
 "J. R. Vidmer."
 Councilman Hale enquired if owens books were checked when he retired from office and a reference to the mln- utes showed that they were audited in 1905 by George B. Cleveland and checked at the close of the term by Accountant Mendenhall.
 Alderman Faith reported resolution instructing the City Attorney to at once institute criminal proceedings against R. B. Owen and civil proceed ings against Owen and the surety on his bond the Fidelity and Guarantee Trust Company of Maryland.
 Councilman Hale moved to amend by instructing the Mayor to employ for inc city George Rosson to assist and participate with the other accountants in checking the books. Mir. Hale ex- nIained that he had full confidence in inc other accountants but that Mir. Rosson had been employed by citizens who had the fullest confidence in him. and he should be continued until 1t was known how much the city has lost. He wanted nothing concealed.
 The resolution as amended was pass ed bv a unanimous vote. The Council then adjourned.
 "A warrant was issued by Recorder Clarke at 7:30 o'clock for the arrest ofR R owen, Jr.. charging him with inc embezzlement of $19,900 belonging to the city of Mobile. The complain ant is police officer T. J. Boltz. % If will be noticed that the embezzle- ment charged in the warrant is for Si0 900 less than the amount of the shortage AS reported by the account ants The s10 900 difference is the amount referred to in the second par aeraph of the report. The check drawn on April 24 1905, was not appropri- ated by owen to his personal use. but was deposited to the credit Of the city. .,..-..,.o. .-.,,, not he developed until the audit has