The San Francisco call., 1909-09-03
False Entry in Report

to County Treasurer Kelly for the Cook
estate.
False Entry in Report
When the semiannual report for De-
cember, 1908, was made up by De Ian
cey the alleged false entry regarding
the Cook estate was made, and repeat
ed in June of this year.
The fact also came to light that there
was no inventory and appraisement
filed for this estate. though the law re-
quired this within 80 days of the issu
ance of letters of administration. That
this was overlooked appeared due to
the fact that disclosure would have fol-
lowed
The discovery of the Cook transac-
tions came when Donahue decided upon
a general roundup of banking institu-
tions about the bay to learn what bust
ness De Lancey had transacted with
them. Deputy District Attorney Leon
Clark went to various financial institu-
tfons and ran down accounts which ha d
been turned over to the public admin
istrator OF Alameda county. officials at
the San Francisco savings and loan
readily brought these certificates of de-
posit to light.
Floods Penitence Felt
At this point the penitence of A. ].
Flood, who followed his first confess
sion by assiduously attempting to
clarity the records of Gray's Office for
Donahue's benefit made itself felt.
Flood recalled having gone with Gray
TO secure the certificate of deposit
and afterward of seeing Gray turn
the certificate over to De Lancey and
subsequent desultory questioning of
De Lancey by Gray about the money.
Gray corroborated Flood fully and
inSnpPfiOn n ho
erasure to the naked eye, although Carl
Eisenschimel, handwriting expert,
showed the members of the grand jury
the absolute proof through lenses.
Seated outside the grand jury room
in the corridor De Lancey remained
throughout the day nervously watch
ing the crowds and appearing very pale
and uncomfortable.
De Lancey Asked to Testify
Late in the afternoon. Donahue came
out and quietly asked De Lancey if
he cared to testify, sparing him the
humiliation of making known his de-
cision when called inside. Donahue
held in his hand the original certii-
cate of deposit which De Lancey had
placed to his own credit and when the
attorneys eyes fell on the paper he
reeled in his chair.
Through Attorney John Mcvey, who
communicated with his counsel. NJ C.
Chapman, and Attorney A. l. Frick
came to his side. Preparations were
commenced TO secure bail bonds, but
the quadruple nature of the indict-
ment took them by surprise and De
Lancey was compelled to wait for sew
eral hours in Judge Browns courtroom.
Inquiry to Continue
The indictments of today and of last
week, when De Lancey and Flood were
Jointly indicted on the forgery charge
will not be the end of the investi cation.
Numerous estates have been found on
the records marked pending" even
though several years have elapsed
since they came into the hands of the
public administrator
A. ]. Flood testified at some length
and gave his information as freely to
the grand jury as he had done to Dona-
hue and Captain of Detectives Peter
sen. Although out on bail Flood,
though under surveillance. refuses to
discuss his affairs.
Evidence of Commission
Walter Leimert was called to ex-
plain his alleged acceptance of a s412
commission from the estate of Cath
crime F. Sypolt for finding a bidder for
her property in spite of the fact that
the bid was rejected. Leimert refused
to discuss his interview with the in
quisitors on being excused. Mrs. S. c.
Hoard, whom Leimert represented, was
also called.
J. A. Munro, the auctioneer, who ad
nlitted under pressure that he found
! favor in De Lancey's eyes by dividing
his fees with him, was questioned about
the rakeoffs given by him and said that
they extended over several years.
Bankers Explain Accounts
F. E. Wagner of the Germania bank
of San Francisco and Rolla Hough of
Oakland gave details of cash accounts
surrendered to Grays employees.
Mrs. Marion Stevenson, De Lancey's
stenographer; Attorney George w
Reed, who took over the handling of
duties given up by De Lancey on his
resignation of last week. and w. E.
Adams and w. NJ. Manning, deputy
county clerks, who testified to the filing
of records, were also examined.
Attorney John Mcvey, who was said
to have sent wireless messages to Flood
advising close mouth policy, was SUBJ
penaed, but was not called.
In conducting the investigation to-
day Donahue was assisted by Chief
Deputy District Attorney Carey and
Deputy Leon Clark. and they will be
associated with him when the grand
jury convenes again next week.
Another Account Questioned
A case which will receive attention
/ is that of the estate of Chew Chu a
| Chinese merchant who committed sui
eide January 16. 1908. leaving a small
stock of merchandise This was sold
for e7l5.S0. The costs of administra-
tion Were $352.11, which is considered
hsert Nd 1,Q ha Ia nf fc coi