Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1916-09-02
Postal Inspectors Who Nabbed
Him on Coast Say He Has
Confessed to Using $500
to Support Family !
MONEY ORDERS SENT TO
JAPAN WENT ASTRAY
Complaints From Maui Japan
ese Started Federal
SleuthS on Trail
tAssocistsd Prss. BY Federal Wireless,

SAN FRANCISCO, Cal, Sept.
2.-Postmaster Morris KeOhoka.
l0le of Paia, Maui, was arrested
here today, charged with embez-
zling funds in the postoffim OF
which he has charge. Postal in
spectors who have been working
on the case and who made the ar
rest and talked with the Maui
man afterwards, say that he has
confessed to using $1,000 to sup
port his family.
Although UP to O'Clock this after
noon no confirmation of the above
despatch relative to the arrest in San
Francisco today OF Postmaster Nor
ris X. Keoholzaloie of Paia, Maui, on
charges Of embezzlement had been re-
ceixsd by fostoffice inspector Thorn
as J. Flayin. the arrest was no sur
prize TO him or other postoffice Of
ficikls here who have kept in touch
with the situation.
About 10 days ago the Star Bulle-
fin received information from IA re-
liable source that Keohokalole was
net coming back from San Francisco,
ond that he was to be arrested by fed
eral officers of the San Francisco in
spector's office, San Francisco being
headquarters of the postoffice inspec-
ton division of which Hawaii is a
part The information was not used,
in order not to hamper the efforts Of
the authorities.
''Keohokalole was supposed to come
back on the Manoa next Tuesday"
said Inspector Flavin, 'but We had not
received definite word that he was
returning. will probably get a cable
this afternoon II the news OF the post
masters arrest is true" He added
that he has been working on the case
for the last three or four months, but
that as correspondence with the Japa-
nese on Maui whom Keohokalole had
defranded. was slow, the investigation
had not been fully completed.
star.BulIetin Gave First News
On August IL the Star-Bulletin pub.
lished the first story relative TO Keo-
hokalole's Irregularities concerning
money orders issued TO Japanese. The
day before, August 10, a petition from
Japanese of Paia was received by
Japanese Consul-General Rokuro Mo
roi Of this city, asking the consul to
take up the case with the postoffice
inspectors.
ceipts, and declared that the money
lad never been received in Japan. The
dates Of the missing orders run back
from q few months ago to as far back
as July, 1915. The total amount the
Paia postmaster is alleged to have
stolen Is close TO $500.
Keohokalole was one. of the Demo
cratic delegates to the national con-
sention Of the party in st. Louis this
summer. He failed to return to the
islands with the others. It is said that
his bond as postmaster was signed by
prominent Honolulu Democrats at the
time he was appointed to the position.
From a reliable source this after
noon, 1 twas learned that Kaohokalole
embezzled the money as follows:
A Japanese would come to the post
office with say $500, and asE<for
money-order for that amount she
postmaster would give him receipt
for 5000 but would later make out
the required duplicate copy of the
order for a smaller sum, and keep the
balance. This duplicate would be
forwarded the Honolulu postoffice, the
onlyo one authorized by Japan {
handle money-order exchange. The
exchange office here would forward
the sum called for in the. duplicate,
anywhere from 500 to 5000.
When the Paia japanese was noti-
fled by the party in japan to whom he
sent the order, that only a small sum
had reached Japan. he complained TO
the postmaster, who would tell him
he would write Japan to have. the loss
investigated. AS it would take two
months for the reply to return from
Japan saying the smaller sum was cor
rect, Keohokalole would stall him
Off by telling him a mistake had been
made and he would take it up further.
In this way he stood off the japanese
until he went to the mainland.