Rogue River courier. (Grants Pass, Or.) 19??-1918, 1916-10-03
Of
P.0..TAKES
FUNDS
Deputy in Local Posto6ce IS
Arrested On Complaint OF
Inspector, Charged With
Embezzlement Of Money

To get the funds to meet expenses
caused by the sickness and death OF
n son. w. A. Newell. for IL years de-
putty postmaster OF Grants Pass. took
money from the money order fund
and today is under arrest charged
by q post oiIice inspector with en-
beEzlement.
For several days =. J. Gallagher.
an inspector from Spokane. has been
here investigating the condition Of
certain OF the post ONCE funds. A.
a result OF the investigation Mr.. CAL
lagher last night made complaint be-
fore United States Commissioner Her
bert Smith. charging Newell with en-
bezzlement. The complaint alleges
that the taking OF cash from the
money order fund by Mr.. Newell has
covered q period between June 30.
1913. and September 80. 1916. Tho
complaint does not set out the amount
OF the embezzlement. but the amount
lis understood to be about $3.50.
Arrested upon a warrant issued by
Commissioner Smith. Mr.. Newell was
arraIgned before the commissioner
this forenoon. He waived prelir,in-
ary examination, and bonds were
placed at $4,000. Because of dim
Guilty In obtaining bondsmen. the
amount was later reduced to 1880.
and Mr., Newell is now attempting to
raise this.
Mr.. Newell makes no denial OF the
serious charge that has been placed
against him. He admits that he first
took cash from the fund more than
three years ago at the time Of the
last illness OF his son. At that time,
he says, he took 5000. expecting to
replace II later through the sale Of
his home, He at later dates took
amounts from s25 to $50 at a time.
but occasionally replaced small
amounts of the stolen cash. The
$500, he says. is all the shortage
there is In the ONCE. Inspector Gal
lagher Is still working upon the ac-
counts OF the ONCE. and declined to
state the amount Of the shortage.
How he kept the amount OF his
shortage covered for more than three
years was explained to the Courier
by Mr.. Newell this afternoon. He
said that he at all times made cor
rect report Of the tnnds to the de-
partment. A ialsified report was kept
In the ofice, however, and this bal
anced with the cash In the money
order fund, For more than three
years the inspectors have been fooled
by this false report. the uncoverlng
coming at last. II II said. when ON
cials wired to the department to fnd
how much Of q balance the report Of
the local office showed In the money
order fund upon q certain date. When
a discrepancy was found in the re-
port at Washington and the report
made here, inspectors at once started
the investigation. which resulted in
the unearthing Of the true condition.
During all Of these three and one
half years Mr.. Newell has kept ac-
count Of the amount he owed Uncle
Sam, and confidently expected. he
says. to make repayment. Each
monthly and quarterly report has
been made to jibe with his juggled
figures, and only recently had the fin-
ger Of suspicion turned toward him.
He tells story Of worry over finances
that must turn sympathy to him. He
had mortgaged his home and had
even borrowed every possible dollar
upon his life insurance pokcies to
send his stricken SON to Colorado In
the hope Of finding health and
strength for him. Then came the
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