The San Francisco call., 1909-12-09
County Funds in Banks

been deposited by Chamberlain in the
First national bank of Redwood City,
OF which he himself is an officer, IN
the Bank of South San Francisco and
IN the Bank of Burlingame, but no
interest is paid by any Of these insti-
tutions The effect of the resolution
adopted yesterday by the grand jury
is to instruct Chamberlain to withdraw
these funds at once and have all the
cash belonging to the county in his
cwn possession in Redwood City to be
counted by the grand jury's expert.
Chamberlain was called as the first
witness before the grand jury yester-
day morning and was asked concerning
the status and amounts of the various
deposits. His attention also was di-
rected to All agreement which he signed
with other county officials last Febru-
ary, setting the minimum interest rate
on county funds at 2 per cent, and was
asked why he had not collected this
interest from the banks
Chamberlain defended his own posi-
tfon by declaring that the county had
made no provision by which he. could
keep the money in his own custody,
that none of the county banks con-
tained adequate safe deposit vaults for
a special deposit, and that none of them
was willing to pay interest on the
deposits He asserted that he had
taken the only course open to him in
putting the funds on regular deposit
without interest He limited, also, that
he would retaliate for the present in
vestigation by demanding that the
county furnish hini with proper vaults
for the safekeeping of the money un-
der his personal custody.
Scrutinize the Bond
The matter of chanrberlainis bond
of 5nnf1irx hU q
grand jury. The bond itself was pro-
duced and critically examined for the
PRESENCE Of any jokers that might pos
sibly save his bondsmen in the event
that they should be called upon at any
time. Chamberlain himself said that
he knew nothing about the legal virtue
OF the document, but that it had been
drawn by competent attorney, and he
presumed that it was perfectly good in
every respect.
District Attorney Bullock was called
before the grand jury at the morning
session as a witness, but was later
asked to remain in his capacity as dis
trict attorney and legal advisor of the
body. He was questioned concerning
the county funds. but later in the day
directed the Interrogation of witnesses
in other matters. Bullock said that in
his opinion Chamberlain had acted en-
tirely within the law in making the de-
posits as they now stand and that his
construction of the municipal deposit
act was that county treasurer was
forced TO make a deposit with any bank
upon demand when the provisions of
the act were complied with by the
bank.
Bullock asked the grand jury that
Attorney General Webb, who has been
advising with Foreman Kerte1, be in
vited to appear before the body and
that he be privileged to discuss the
matter of deposits with him in the
presence of the grand jury
Discussion Is Heated
During the Interrogation of Cham
berlain there was considerable heated
discussion between him and members
of the grand jury, which threatened at
times TO break out into acrimonious
charges.
The only other witness called YES
terday aszJustice of the Peace Arthur
Mccormick of Pescadero. who was