The Detroit times., 1917-07-17

HeHfOu's court, NhcTe ne rtklsttANN
a. A prisoner, tho Detectives Rick
ana Coats. who remained with him
had not actually served the embez
element warr9nt.
Assistant Prosecutor Keidan re
NAMED closeted In the grand jury
room I'm Justice Heston's court un
M ll.20. When he announced thai
1e was ready, Kloka was called. he
promptly pleaded not guilty. and his
attorney demanded a police court
examination.
Keidan demanded that next Fri
day be set as the date. Mistersky
declared he could not be ready. a
heated argument followed.
81 left sick bed TO come here
said Mistcrsky.
you appear 10 be conyalescing'
said the court.
Mistersky demanded two weeks
time 20 prepare the case, but hnally
agreed 70 appear next Tuesday. no
he would not promise 10 be READY
az that time.
When the bail question came NJ,
Mistersky said he believed Se.ovo
would be enough. because he prs
oner already had furnished $4,000
IN cash as security 20 the county
auditors. Keidan sprang surprise
hy demanding that the bail be rais'
ed 10 $4,000 and that Two sureues
instead OF one be required
DEVELOPMENTS OF the last two
days convince me that the bail
should be increased" said keidan.
"It's prohibitive and exoroitant'
shouted Mistersky. u was given 20
understand last week that the post
ing OF the $4,000 bail would insure
no further action until We appeared
today. Instead, the moment | put
nv foot on the boat 10 90 10 bu-
falo. you got out a warrant for THIS
man. He's played square with the
court. We are entitled 10 considera-
ton"
"You seem 10 forget" interjected
Justice Heston, that | am sitting
as a grand jury in this csas and
that know something about H.
"That shouldn't influence you, as
serted Mistersky. I'VE are Before
you as police justice not as grand
Jury"
The bail was fixed as the prose
cutor demanded.
II can furnish that much" smiled
Kloka.
Mistersky Immediately left the
sourt room TO find hpndsmen. Hard
" had his figure disappeared thru
the door when Detective RICK sery-
ed the grand jury summons on
Kloka-
whats this? What's thisT
was Kloka's bewildered inquiry.
A moment later the grand jury
was in session and Kloka *as being
led before It.
Kioka was before the grand Jury
only about 10 minutes and was then
taken 10 the office OF the county jail
to await his attorneys effort TO Sc
cure bail.
The determination TO arraign
Kloka before Justice Heston instead
of before Justice Sellers came Al tho
suggestion of the prosecutor II was
reported that new bondsmen would
be required for the $4,000 bail
David Nederlander, a professional
bondsmen furnished the $4,000 Sc
curity.
Prosecutor Jasnowski attended
the meeting OF the circuit Judges.
All members OF the bench except
Judge Codd were present. Jasnow-
ski laid before the judges his plans
for an investigation that would be
OF scope broad enough TO include
public affairs and the affairs Of busi-
ness concerns that deal in the neces-
stiles OF life. Vice and gambling
districts in Detroit and in the dis
tricts outside the city are also OBJ
jectives.
"The time between now and Sep
TENDER, when the jury is called WI
be devoted 10 digging up evidence,
said Jasnowski Il want all the in
formation can get from any source
whatever"
Joseph wuellner, former assist
ant cashier in the treasurer s
ONCE; John F. w. Vergouw, for
mer treasurer. and William II.
Green, Jr., the present treasurer,
were witnesses before Justice Hes
ton, sitting as a grand jury, Mon
day afternoon. IL is said that Hes
tons inquiry has already progressed
TO a point where one or more ar
rests in connection with the Kloka
scandal are close at hand. Kloka' 8
manipulation Of the records has
been such. officials say, that he
must have had assistance In the
treasurer's Office.
The confirmed report that former
county treasurers have been retain.
ing money paid as interest on spe-
cial tax deposits, as well as the in
terest on money posted with them
for liquor licenses, is certain 70 be
considered by Heston. The state
law reads that the s. 900 salary paid
the treasurer shall be full payment
for services and shall be
In lieu OF all fees or commissions
collectable."
Former Treasures William +.
Moeller. now county auditor, and
Edward r. Stein, now sheriff, have
declared that they collected the in
terest because they knew IL had been
a custom for years and was regard
ed as one OF the perquisites OF the
ONCE. They expressed a willing
ness 10 pay back into the treasury
every penny of interest they accept
cd. Following their proposal, the
situation became further complicat.
ed when Treasurer Green said be
would not take the money from his
predecessors, because such action in
his opinion might relieve Stems and
Moeller's bondsmen OF responsible
lily. Green has asked Prosecutor
4