The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1917-07-24


Justice Heston first suggested thai
the examination on the FIRST charge
be given precedence. Wnen Kloka''
counsel realized that this would give
the prosecution an opportunity 70
arraign him late in the day. when
there would be slight opportunity
10 get bail. they demanded an i'm
mediate arraigument in the second
case. Kloka pleaded not guilty, ana
Justice Heston then accedcd 10 As
slsiant Prosecutor Keidan's demand
that $4,000 bail be required
Murtha, after objecting 10 ms
amount. entered on the records m
objection against the entire proceed
ing
This is not for personal reasons
said Murtha 90 Justice Heston, pui
everyone knows that YOU are acting
as grand jury inquirlns into Ger
tain matters-Or mistakes--in the
county treasurers office. and YOU
might be influenced by some test
mony taken before you as a grand
jury"
His objection was oyorruled.
Joseph Wuellner. former assistant
cashier in the county treasurers Oh
Nee. was the first witness summon
ed. He testified that he had cut out
pages a.. as. 80 and 20 OF the mort
cage tax records on the order OF
Kloka. These pages bore entries OF
about 100 land contracts LETT TOT re-
cording by the Roney Land com
pany.
"Kloka told me that the land COM
pany didn't have the money ana
that they wanted us 10 hold on Tor
few DAYS" said the witness ! hau
recorded the contracts on the pre-
yious night, as Mas the custom.
asked Kloka why he didn't let ne
records ride. and simply mark can
celed over the pages instead OF cut
ting them out and substituting oth-
ers. Kioka insisted on taking oul
the pages. and | did | didnt think
there was anything wrong about H.
The check which Herman Schme
man. OF the Roney Land company
had paid 10 Kloka when he left the
contracts was then admitted IN evil
dence with the mutiiated records.
II never saw the check. said !
Wuellner.
The check was for 81 .6S6.
Schmeman was then called 10 the /
stand. He said he gave the check I
and the contracts 10 kloka IN the !
treasurer's office, Oct. IS. 1918. kio. !
ka advised him TO let the check. re- I
main in the office for a while, said |
Schmeman.
..,r-x = $500. ~ cave nOutfnuad !
the witness, was that a supreme /
court decision was expected IN 1
few DAYS which would determine 1
whether taxes should be paid on the
face value OF the land contracts or /
on the amount of the balance due on /
them.
81 called 10 see Kloka from time l
to time. and when didn't meet him 4
personally. he would telephone me 4
that he was still waiting for the /
decision. Dec. 80. 1916, the check \
| had paid him came back from the /
bank. cancelled. II had been paid 4
That's when became suspicious
l asked Kloka for the receipt and I
the certificates for my land contract I
taxes.
"He finally came up 10 my Office |
and said he had put the check thru |
In the regular way and had credited |
the amount TO his personal account !
He said he had always been my I
friend and wanted me 10 do him q |
favor. He showed me a note on /
which he had collected 5000 from
John Smedley, the present chief clerk
In the treasurer's otfice. lie said
Smedley knew about the Roney land
company check and was trying to
make trouble for him. because he
had forced him TO pay the 5000.
"He asked me II ! wouldn't go TO
the treasurers office and pay The
S1,6S6 in taxes again. explaining that
had withdrawn the first check.
told him | couldn't do that without
the consent of the other officials OF
the land company. We held oon-
ference, and when il was suggested
we would have TO pay personal
tax because OF the delinquency
caused by bis failure 10 pay the
taxes, he said he would not only
give us the amount of the check,
but would give us security four or
Ave times as great as the personal
tax. We didn't pay the tax again.
and SO far as know those l20 land
contracts are still in the treasurer s
office, unpaid"
James G.. Pinson, cashier OF the
treasurer's offlce. testified that Kloka
had charge Of receiving the moneys
for land contracts, mortgages and
bonds, and that he turned in his
cash with the deposit slips each
night. He admitted that others
might have received money besides
Kloka. A record was introduced 10
show that Kloka had not recorded
the Rooney check until along in De
cember, tho be had received il in
October, and that he recorded II as
payment on other accounts. so that
he could cover up cash shortages.
Under cross-exam ination by Muir
tina. Joseph Wuellner testified that
almost everyone in the treasurer
Office had access TO the books and
to the cash before the big change
was made six months ago. immedi-
ateiy following discovery OF kloka's
shortage.
The high-powered touring car
which Kloka is supposed 10 have
sold to his sweetheart, Marie OILS
cewski, was seized on the writ Mon
day afternoon by Deputy Sheriff
Otto Klanowsky. despite the fact
that the young woman pr6cnted a
bill OF sale stating Kloka had sold
her the machine for 81 and other
considerations.
Miss Olscewske and her father.
Peter Olscewske, a saloChkeerer.
wero Sur,nrnoped before Justice He's