The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1909-01-20
VIOLATES LAW
IN DFPOSITING
COUNTY FUNDS
N8teO's Treasurer Faces
Suit for Recovery of In
terest on S25O,OO0
Grand Jury investigates Case
And VIII Recommend That
Action Be Started
InquisitOrs Viii Also Advise
Removal of Four County
Officials
Especial Dispatch 10 The cal1

Especial Dispatch 10 The Cali
REDWOOD CITY, Jan. 1s-Strong
evidence of stifening baclzbones in the
san Mateo county grand Jury room to-
day was followed by a remarkable
epidemic Of knee palsy among county
officials. The evidence of the former
anatomical condition and the cause
OF the latter are contained in the assur-
ance that the final report Of the inQuis-
itors viii contain the following recon-
mendations:
That suit be brought against County
Treasurer p. p. Chamberlain, his bonds
men, and the First national bank of
Redwood City 40 recover for the cOun-
ty interest claimed TO be due on county
funds in the amount of about $3.50, 600,
deposited in the bank, Of which Cham
berIain is vice president and a director.
That accusations be filed against the
following county officers, with the view
OF fBauEurating proceedings TO secure
their removal:
District Attorney J. j. Bullock, Sher-
IN Robert f. Chatharh, Supervisor D..
z. Blackburn of PescaderO and super
visor John VI. Coleman of San MateO.
That action viii be taken against
Chamberlain can scarcely be gainsaid
1t can not be stated so positively that
accusations viii be brought against
District Attorney Bullock. Sheriff
Chatham and the two supervisors,
Blackburn and Coleman. but they viii
be severely censured in the report of
the jury. Ex-Supervisors Joseph De-
benedict of Half Moon bay and Julius
Caesar Eikerenkotter of South san
Francisco VIII be strongly condemned.
Bullock and the supervisors are in
VOWED in the specific scandal con-
corning the award to the J. J. O'Brien
construction company of a contract for
s2.991 for additional steel work on the
new courthouse.
The developments involving the coun-
" treasurer were the real sensations
Of today's session of the grand jury.
CHAMBERLAIN RUNS STORE
Chamberlain is one of the eminently
respectable citizens Of San Mateo coun-
~ and the First national bank has, in
the popular mind, all the pre-eminence
and respectability that its name i'm
plies. Chamberlain has been treasurer
OF San MateO county since 1882 and
conducts a general store and the ex-
press company agency. No charge is to
be made that Chamberlain misapprO-
priated the funds of the county But
he admits that he deposited $780, 600,
approximately. Of the county funds in
the bank OF which he is vice president
and director. This money was de-
posted without complying with the
law, according TO the report of E. J.
White. the expert accountant of San
Francisco, who has been been exporting
the county books for the grand jury
Whites report viii be read before the
grand jury tomorrow morning.
Prior TO March. 1907, public funds
could not be deposited in a bank un-
der the law In March, 1907, new
law became operative. under which
funds could be deposited in bank TO
the extent Of a tenth Of the banks
capital stock, upon the bank offering
as security certain desi gnated collat-
erals Of the type Of United States,
state. county. municipal or similar
bonds. The First national bank has
not deigned TO comply with either law.
No PLACE TO PUT MONEY
When questioned today regarding the
disposition made of the county funds.
Chamberlain said The county usually
has a balance of about $36O,OO0 on
hand. We have no place to put the
money, so 1 had to deposit it in q bank
I put about s250,O00 in the First ma
tional, of which 1 am vice president
and director. and the balance In the
South City bank Now. the bank didn't
want the money bad enough to take it
on the conditions imposed by law. but
] had 10 put IL somewhere could not
keep ii here in my store. Yes, the
bank secured interest on the money.
but my profits from that source, as a
stock holder in the bank. would not be
more than $50 year." he added in
genuously-
Expert White viii report that the
First national bank secured about
$4,000 year interest on the Investment
Of county funds, getting 2 per cent in
terest The suit viii be brought to
recover this money for the county.
What makes the position Of the First
national bank the more interesting is
the fact that George c. Ross. political
boss OF San Mateo county and a presf-
Dental elector on the republican ticket
at the recent election, is attorney for
the bank, and that J. l. Ross. his
brother, is president Chamberlain is
vice president and the other officers
are: Secretary and cashier, L. p. Beh-
rens; assistant cashier, r. X Towne:
directors /. Ross, @. II. Rice p p.
Chamberlain, Charles Holbrook. James
Grove, c. r. Splivalo. c. Josselyn and
l. p. Behrens
no CRIMINAL PROCEEDINGS
The investigation into the Chamber
lain case was conducted entirely
through the work of Expert White
Neither Chamberlain nor any other
banker was called as a witness. White
said last evening that Chamberlain and
the bank had violated the law, but that
criminal proceedings would not be
brought against the county treasurer
Superior Judge George H Buck OF
san Mateo county was in frequent con-
ference with the grand jury today. adj
Vising that body regarding proceedings
that might be brought against county
officials. Among the sections OF the
penal code under consideration were
the following:
Section 335. which declares that any
district attorney. sheriff or other po-
lice or peace officers who refuses OF
neglects TO inform against or prose
cute a person whom they have reason
T-o1f - h. of "a