New-York tribune., 1921-01-04
City Bond Clerk
Seized: Another
Named inTheft
Comptroller Craig Asserts
Fugitive Is James T. Har.
ris; Charles Kloos, Also
Veteran Employee, Held
Doubts $4,000 Total
Prisoner Says Missing Man
Waited Outside at Time
of His Own Detention

James T. Harris, of 467 St. Johns
Place, Brooklyn, for twenty three years
an employee of the city Department of
Finance, was named yesterday by
Comptroller Craig as the clerk who alb
seconded on Friday with thousands of
dollars in city funds. The exact
amount of the alleged theft is not
known.
Another clerk, Charles Kloos, thirty
five, who worked in the same bureau
and who was in custody Of detectives
all day yesterday as a confederate of
Harris's, was locked up in Police Head
quarters last night charged with grand
larceny. Kloos has been in the Finance
Department for eight years.
Harris is a fugitive, and his indict-
ment, along with that of his alleged con-
federate, will be sought before the grand
jury to-day. Koos is alleged to have
told Assistant District Attorney Pecora
and Detective Cuniffe last night that he
was unwttingly the accomplice of Har-
ris in hypothecating or pawning Liberty
bonds left with Harris by contractors
to be put up as surety on bids. He
said he did not know that he was doing
anything wrong, but thought he simply
was doing favor for his fellow clerk.
Difficult to Check Up
Comptroller Craig admitted yester-
day it will be difficult to check up the
exact amount of the alleged defalca-
tions of Harris and Kloos. He said he
did not believe they would amount to
$4,000 or 100000, as has been sug-
gested. 1t is probable that they will be
found to exceed both figures, in view
of a statement Kloos is alleged to have
made last night that he hypothecated
$4,000 worth Of Liberty bonds at one
time with the Morris Plan Company for
about 80 per cent of their face value.
1t is understood that the uncovering
of the thefts in the Audit Bureau of
the finance department may lead to
the exposure of irregularities in other
departments. Many employees were
questioned yesterday and it is under
stood that several audts were begun.
Comptroller Craig said a further re-
suit Of the scandal may be that civil
service control Of city employees han
ding money Will receive a serious blow
He said he believes the Supreme Court
would not uphold the Civil Service
Commission in refusing to exempt con-
fidential employees of the Finance De-
partment if a test were made.
Specific Offense Charged
Harris, a $3,000-a-year clerk, and
Kloos, earning $2,100, are both spe-
cifcal'y accused Of stealing $500 worth
Of Liberty bonds on December 81. The
bonds belonged to Charles Schacfer e.
Sons. feed dealers, of Brooklyn. 1t is
alleged they were given to Harris to
deposit as surety for the company in
bidding on e forage contract.
Harris's alleged manipulations were
discovered through information fur
nished by Michael Del Balso, a Bronx
contractor, who some time ago went to
the Comptroller's Office with $9,750 in
cash and bonds. 1t is admitted that cash
or Liberty bonds are often left with
clerks TO deposit as surety by the con-
tractor to save him doing it personally
or in an effort to curry friendship with
Continued on pago four)