The San Francisco call., 1909-07-09
NEGLIGENCE OF
S.P. OFFICIALS
BEING PROB[D
Shortages in Freight Office
Promise More Sensational
Developments
Peculations of the Three Dis
charged Employees Found
to Be S2,653.l5

Charges ofsnegligence will probably
be made against certain Southern Pa
cific officials because their subordi-
mates have been stealing the funds of
the company for some time past.
The thorough inquisition into the af-
fairs of the freight department. In the
local Offices of the company has brought
as much of sensation as did the dis
covery of the peculations Of Assistant
Cashier Russell Bedford Cameron and
Collectors j. H. Marshel and Gordon M.
lished exclusively in The Call yester-
day.
There was a shortage at the San
Francisco freight station of s2.653.l5,
Assistant Auditor W. F. Ingram ad
mitted yesterday, -but it has been made
good to the company and the three
men involved have been discharged"
Travelling Auditor Charles v. Shelford
and about 80 men began the work OF
checking up the local office May 2s.
The work is now practically completed.
Shelford will turn over his data to AS
sistaht Division superintendent Edwin
r. Anthony today or tomorrow, and
then a report will be made to General
Superintendent J. H. Young.
GUILTY OF NEGLIGENCE
I'VE have not completed our inves-
tigation,' said Anthony yesterday" but
we expect to in a day or two. / do
not think any one other than the three
men already discharged participated in
the thefts. The worst that can be said
I a bnuf herC &c haf fhQU Oni1fV
of negligence. I can not yet say just
what recommendation we shall make
TO the general superintendent regard
! ing negligence"
William j. Hardy, the local freight
agent, was in the east when the audit
ors discovered the shortages. Melville
C. Cleaves, his assistant. was in charge
/ of the Office at the time.
When seen at the freight Office yes
| terday Cleaves was f1ippant and seemed
eager to shield the discharged EN-
/ ployes and minimize their crime. He
! desired to learn what new develop.
ments there were in the scandal which
broke while he was in charge Of tn,
freight office. but sneering remark.
were made by him when further in
formation concerning the defaIcation,
was sought.
HARDY WAS IN EAST
Hardy went east on June to at
tend the convention of agents in Al
bany According to Anthony he wa
sent by the company for the purpos
of gaining information for the pos
sible Improvement of the service, bu
when the discrepancies were discovered
it was decided to withhold the repor
to the general superintendent unit
Hardy could be on the scene
The discharged men employed
novel system of using the company
money. Their peculations were covere,
up by taking their collections of on
day to cover the shortage in the col
lections of the day before. BY adoptin,
such an endless chain scheme the,
could operate successfully until thei
accounts were checked right up to date
It was due to the careful investiga
tion of the men under She1ford tha
the shortages in the accounts of th
three discharged employees were discov
cred.
The shortages have been met b,
friends and relatives of the three mei
and there will be no prosecution unless
the surety companies decided to tax,
action.