The San Francisco Call. Newspaper, September 24, 1902, Page 3

THE SAN FRANCISCO CALL, WEDNESDAY, SEPTEMBER 24 STATE BOARD OF EXAMINERS RAID THE SCHOOL FUND TO ENRICH CULATOR IN A VERY QUEER BOND TRANSACTION A MENDOCINO SPE Needless Payment of a Premium of Ten Thousand Dollars for the Securities. - Squandering This Sum Less Than WAR IS SOLDIER’S REAL SCHOOL SAYS GENERAL NELSON A.T1ILES He Pays High Compliment to West Point, However. Go:s South to Inspect Fortifications. Month After Original Sale of Bonds by County. : -~ -+ ‘ NCE more has the State school fund been mulcted out thousands of dollars by the peculiar financiering of { Jan Kevane, who manages the State Board of Ex- aminers for Governor Henry T. Gage. Within less than a month after their sale by the county of Mendocino, bonds were purchased of a private speculator at a premium of $10,231 50. Nec attempt was made to buy the securities | when they were originally offered by the county, and the entire transaction, including the method of procedure of ! the Mendocino Supervisors, was extraordinary, to say the | . i 1 | | | % = Supervisors Barnard, Smith and Sim- onson, who are a majority of the board, ted to accept the offer of H. B. Smith. The two Smiths are brothers. Supervisor R. H. Rawles alone voted “no.” his was on June 4, 1901. Twenty-eight days State school | later, on July 2, 1901, the State Board of Examiners, which is dominated by Dan Kevane, paid its premium of $10,23150 for these same bonds. AWARDED TO SMITH. le The following is the official account of the nner in which the Mendocino Su- re disposed of the entire block of , being copied entire from the min- book of the board: In the matter of sale of county bonds: H. they were first offered for sale. g Eif;‘l;’:_dhar;mg ““f‘g’“-“ apf;;eare.{: ;);am&:ol;"! 3 oard a nade a bid or offer o i or ey was put into the i the 190 bonds of Mendocino County, this day squandered er In issued by or- | ess than | pal by State, ared as a bidder for the securi- El B 8 -4 ordered issued, and having tendered with said bid & certified check for.§100), payable to the | order of the chalrman of the Board on account there ar the Mendocino County parallels the , by which the | ; thousands | nty Super- . in which to have the legality 5aid bonds and all proceedings uance and in connection there- passed upon by his attorneys and to pay 000; nd that said bonds be and the old to H. B. Smith or his assigns sald sum of $96,000, in United States a certified check as above stated, for $1000, having this day been Gelivered to and ¥ the chairman of this Board in be- { the county; and the remainder of said %00 to be paid to the County Treasurer of Mendocino County on or before the 26th of June, 1901; provided, however, that bonds and all proceedings prior to and in | connection with the issuance thereof be found legal and valid. The books of the Country Treasurer show that the money received by Mendo- > County amounted to just $96,000. The tate in less so far as s agency in ey was never never more u MATTERS OF RECORD. ceedings of s larg which the State Board of h ers was willing to pay and did a 1 nt into private pockets. SMITH IS INTERVIEWED. H. B. Smith to-day made a statement concerning the bond deal in an interview with The Call. He had the fact point: out that his iimited means forbade en- tertaining the supposition that he had $96,000 to invest on his own account. ThiS, he admitted to be true. At first he said the bonds for the State Yo ienced b . asked a little later why | | e could not have bought them on | | 0 wn account and so have saved the s s ater part of the premium, Smifta v ed and declared that he had not r consecu- | claimed to be acting for the State. i -Demo- | _In a somewhat remarkable conversation | | an K embers | Smith also said that he could have got | | 8 1ad am- | more for the bonds than the State gave pi - bonds | him for them. When he was asked why - ss to prepare to pui- | ke did not get all he could he again made € eous to the U?_ | £ 4 I said that I could have got as much— 7 ection t ce in accordance | Pot more—from another party,” was the he date f statement he finally wished to make. telegraph to th declared positively that he bought State that ds as a speculation on his own vl 4 ount; that he knew just what he was n wider circu. | £cing to do with them before he made 4 s bid; that while it was true the prem taken by the Board of Exami rom the fund for the public schools, were many thousands in that fund ninvested. jd the Board of Examiners get any | of the premium for itself? Did you d vide the winning with them?” w RUSHING BUSINESS. | to read the | s of the will dis- ceed answered Smith unhesitatin v did not get anything from me. i the Supervisors of M ) P L=V i . S RS, ety : 7 b AL & get anything for the d gain affirmed Smith. DEAL CAUSES TALK. The bond transaction has caused muc' rise in this county, where the f: DISTINGUISHED ARMY OFFICER WHO IS INSPECTING THE FORTIFICATIONS OF THE PACIFIC COAST AND LATER GO TO THE PHILIPPINES ON A TOUR OF INSPECTION. WHO WILL LAND YESTERDAY EN ROUTE TO LOS ANGELES. — HE PASSED THROUGH OAK- s own by those cognizant of public elating to the county funds. The | B. Smith, | 0id rot have $96,00 to invest, he being I Weaith, came in | an_abstractor of records by occupation, R e aame s therefore clear that he had a I p eitire %0 worth ion in view. This alone should outcome of the | b made the Supervisors seek further e tire lot awarded | before disposing of all of the bonds a lump, without making any inquiry ir the market as to what they would bring. | The Kevane Board of Examiners has now been shown to have pald large prem- vms for county bonds out of the school on three occasions, each time mak- m sed a question X could sell the | such payment unnecessarily. Many | < is for them. He | thousands of dollars thus placed in the - ervisors had | hands of bond speculators or others have a y could legally sell | come out of the pockets of the taxpayers of California. ¢ t question is asked: Why was IEUTENANT GENERAL NEL- . premium of $10,23150 that the State SON A. MILES, United States i patd not gained by the county, instead of Army, arrived at the Oakland | . that by culators, unofficial or otherwise? mole early yesterday morning in s dispose of | 1t was of common knowledge that Smith < % ] a private car attached to the Ore- gon express. In less than an hour his car was coupled to the Los Angeles train and he left the for Southern Califor- nia to inspect the coast fortifications. He will arrive in this city the early part of next week and will sail for the Phillip- pines on the transport Thomas on the fol- lowing Saturday. General Miles looked tired and travel- stained from his trip. He was not in uniform, but was dressed in a plain blue serge business suit and a black slouch hat of a fashionable shape. Upon his ar- rival at the mole a young lieutenant of infantry boarded his car and handed him his mail. After reading some of the let- ters, General Miles spent a few minutes sending telegrams. He then returned to his car and waited for the train to pull Little Gents’ Satin Lace, full round toe and tip, extension sole, low heel, in sizes $1.00 $1.30 9 to 13, at Sizes 1 to 2 i 3oys’ sizes, 2% to 5%. L lies’ Fine Glace Kid Lace, patent leather tip, exten- sion sole, mecdium heel, $2.50 grade, reduced to.$1.90 empting bargains in Men’s sample pairs, worth $3.50 to $5.50, in sizes 7and 7%, at...............$2.90 Hadl-dien Adéress Depariment B. 1] T The Ideal Shoe for Women.......é. Schcol Shoes for Boys’ Hardware . . . 738-740 Market §t. San Francisco L. " NEW ARMY UNIFORMS. In an interview with a Call reporter General Miles said: I am on a tour of inspection and have already visited the garrisons in Montana and I will sail on the transport Thomas next Sat- | urday week. I do not know how long I will be in the Philippines, but I shall remain there until T have made a thorough inspection. | The new uniforms for the army were origin- ally ordercd to be worn on the 1st of January, but their use has been postponed until the 1st | of next J All officers and enlisted men | must begin wearing this new uniform on that | | date. The campaign uniform Is of an olive | green color and is less conspicuous than khaki, | From a distance it is hard to detect an armed force, as the uniform is the color of the ground. | The officers will wear the tight-fitting leather leggings, or English puttee, and the enlisted | men will wear the same puttee; theirs, how- | ever, will be made of canvas instead of leath- er. ‘The officers mounted will wear close-fitting {an boots and for full dress " patent leather oots. RECENT MILITARY MANEUVERS ““What do you think of the recent army maneuvers in Germany?’ was asked of General Miles. “From the accounts I have read,” he replied, “they must have been most satis- | factory. But then there is no school for | war like real war. I saw the maneuvers in Germany four years ago. There were 125,000 men massed together for these movements.” “What European army do you think is the best equipped and which army is the e parisons,” was the reply. “Take the Ger- man army, for instance. The men are well equipped, and their discipline is very fine. The Russians are sturdy, strong sol- diers, and the officers are exceptionally well educated. I have seen the French soldiers in army maneuvers and they make a splendid showing. The English soldier is also good fighting material.” PRAISES WEST POINT. “There was a story recently published, General,” the interviewer said, ‘“stating that English army officers have drawn the attention of the British War Depart- ment to the thorough schooling cadets receive at West Point, and the fact that English junior officers do not remain long enough at Sandhurst. What do you think of that?” “I have only one answer to make to that question: West Point is a splendid military school. The General is accompanied by Mrs. Miles. Colonel Marion P. Maus, formerly stationed_at the Presidio, is acting as Géneral Miles’ alde-de-camp and is ac- companied on the trip by his wife. Frank Hall of Philadelphia, a personal friend of General Miles, completes the party. After a _visit to Los Angeles and San Diego the Lieutenant General will return to this Washington. I will inspect all the fortifica- | mOst formidable?” was asked. city on the coast lie and will spend a tions on the Pacific Coast before going to the | ‘‘Well, now, that is a hard question to | couple of days at Del Monte on the Philippines. answer and I do not care to draw com- ' way up. APPLES AND THE CORN WILL BE ABUNDANT Agricultural Bureau’s Report Shows Favorable Conditions in a Number of States. WASHINGTON, Sept. 23.—The Agricul- tural Department's weekly summary of crops says: “The temperature conditions were gen- erally favorable in all districts east of the Rocky Mountains. The middle and southern Rocky Mountain districts have recefved abundant and much-needed rains. The weck has becn generally cool or. the Pacific Coast, with rainfall slightly in excess of the average in portions of Oregon and Washington. Frosts occurred in the Rocky Mountain districts, Missouri and Upper Mississippi Valleys and Lake region, but were less damaging than those of the previous week. No_further material damage by frosts bas been sustained by corn. The reports indicate, however, that previous estimates of injury by the frosts of the 12th and 13th have been conservatively stated and that the damage to a large part of the late crop in the northern dis- tricts has been very ‘serious. Over the southern portion of the corn belt an exceptionally fine crop is now as- gured. In_Michigan, Wisconsin, Iowa, Missouri, Kansas and portions of Illinois ihe reports indicate a good yield of ap- ples of fine quality, but in the Ohio Val- ley, Middle Atlantic States and New Eng- land a generally light yield {s indicated. S IR FREBUES ot N CLSTODY Speclal Dispatch to The Call. SAN RAFAEL, Sept. 23.—San Rafael's notorious firebugs, against whom more’ than a score of fires are charged, and who for more than a year have baffled the efforts of the local authorities and San Francisco detectives to effect their capture, are prisoners. .Antone Morris and Eugene Case, two young boys, to- night confessed to Detective William Treanor and District Attorney Melsaac that they had started eight incendiary fires in the past year. T%ey began by admitting that they were responsible for the blaze that destroyed the stable at the Marin County Soda Works on Friday night of last week, and gradually added to their confession until they had nvzn I the officials a list of eight places therde- struction of which they had caused. The officials are confident that they need look no further and that the boys in custody will to-morrow admit having started the other fires that have occurred within a year. In one of these an aged woman met her death and the property losses in the many conflagrations aggre- gate a sum far Into the tnousands. “We started in with Grady's barn last December,” said young Case to-night. “I never set the fires. Tony did that, but I was always with him. I used to yell, ‘Fire,” and we would love to see the fire- men run. We did it just for fun. Besides Grady's, Tony set fire to Cassidy's barn, Chida’s stables, Mulcahy's, Scott's, Gies- ke’s, Loretta's and the soda works. We set only eight fires. No, sure we did not set others. Once we had a little cologne bottle full of coal oil. I used to watch and Tony would go into the barns and light the fires.” ugene Case is 14 years old, while An- tone Morris is only 9 years of age. Case has been under surveillance for some time. To-night he was seen near the narrow-gauge station, acting suspici- ously. Constable Trainor took him into custody. On the way to jail Case claimed that Morris had set fire to the Soda ‘Works barn on Friday night. This was told to the District Attorney, whereupon Morris was arrested. When told what Case had sald Morris broke down and canfessed having com- mitted arson. He said he put a lighted cigarette between the crack in the barn, watched the hay ignite and then ran away. Later the boys admitted other in- cendlary acts, one by one, under the questioning of the District Attorney. IMMENSE SCHOOL FUND - LIES IDL E IN TREASURY Taxpayers Lose Interest on More Than a Million Dollars Through Blundering Policy of Officials. Special Dispatch to The Call. ACRAMENTO, Sept. public schools of the State| should be deriving the benefit | of the interest on a million dol- | lars in gold which is locked up | in the vaults of the State Treasury. That they are not recelving tnat benefit is due to the lack of | business sense of the Gage administra- tion, as chiefly personified at the capital | by Daniel Kevane, secretary of the State | Board of Examiners. The State school land fund, as is gen- erally ..nown, is made up from the sale of | lands deeded by the general Government | to the schools of the State. The condi-| tion of the grant was that the money real- | ized from the sale of these lands should | go into a separate fund and should be in- | vested in bonds of the United States Gov- ernment or in bonds of the counties of the State. The interest on these bonds, it was further stipulated, should be ap- plied to the support of the public schools of the State; but in no event could a dol- | lar of the principal be expended for any purpose other than the purchase of the bonds. The investment of this fund was placed in the discretion of the Board of Examiners, and the amount to be derived from this source toward the support of the schools depended upon the wisdom with which this discretion was exercised. As the sale of school lands practically closed long ago, nothing remained for the Board of Examiners but to see that the money was loaned out as soon as it should accumulate in the treasury and | that the schools received every dollar that | could possibly be earned by the immense | sum which the fund represented. IMMENSE SUM NOW IDLE. | Former administrations used excellent | judgment in the investment of this fund, | continuing to keep it out in interest bearing bonds and earning for the co mon schools thousands of dollars in rev- enue each year. But under the Gage regime it has been different. The bonds | bought by former administrations have | been coming due, and have been redeemed. But instead of Temaining at the capital | and placing out the moneys in wise in- vestments as'it came in, Gage and Ke- vane have been abroad throughout the State attending to their private inter ests. As a consequence the fund has accumu lated until on September 1 it reached | 22.—The true that Kevane did attempt the ine vestment of a portion of the fund, and since September 1 made a purchase of Riverside County bonds, paying in round figures $169,000, or about $12,000 more than they had been bought for a week before the State purchase. By an equally bad speculation in Kern County bonds the fund suffered the loss of about $17,000, and on Mendocino bonds $10,000 was wasted. It might be argued with much force that it were better to let the money remain in the treasury than to invest it In the bungling manner of Kevane, but the schools of the State have a con- cern in seeing to it that the fund shail not long continue to swell the vaults of the State treasury. If invested in the 4 per cent county bonis which private brokerage firms are able to secure without trouble, the fund in its present propertions would earn to the common schools of the State about $40,%0 per year. This revenue would ap- preciably reduce the amounts the coun- ties bave to raise by taxation for school purposes, since the more the State is able to pay toward the education of each pupil the less the counties have to pay. LOSS TO TAXPAYERS. In other words, through the misman- agement of this fund, controlled by a board over which Governor Gage presides and Kevane is the executive manager, the taxpayers of the State are out of pocket $40,000 each ye: r enough to pay the salaries of the Governur, the secre- tary of the Board of Examiners, the Sec- retary of State, the Attorney General, the State Treasurer, the State Controller, the Surveyor General, the Superintendent of Public Instruction, the State Printer, the Clerk of the Supreme Court, the State Librarian and the State Insurance Com- missioner and have a balance besides. When a loss to the taxpayers is thas occasioned through the mismanagement of the State finances it may readily be understood why the food and clothing suppliessat a penitentiary are cut down to effect the appearance of economy. When Gage took office four years ago there was in the fund about $160.000. The next year this had grown, by the redemp- tion of bonds by the cpunties, to $590,000, and the fund has constantiy grown until, as stated, it reached $1,143.09 4 on Sep- ember 1. In former administrations the und rarely at any time was permitted to reach more than $100,000, being put out at good interest again as soon as bonds fell due and were redeemed at the, treas- ury, and the interest going to thé sup- the enormous sum of $1,143,09645. It is!| port of the common schools. o 20 20 2 O M 20 0 2 2 o ) CLIENT Migats- HER THOUSANDS Boston Lawyer Disap- pears and Woman'’s Coin Goesg, Too. Special Dispatch to The Call. BOSTON. Mass., Sept. 23.—M. R. Moore, a well known Boston attorney, who, with Hugh Duffy, was the prime mover in the organization of the American Baseball League, and for a time its counsel, has been missing from Boston since last Fri- day, in possession, probably, of $439.60, money of his client, Miss Ellen Hurley. Involved in the affair besides Miss Hurley is her brother-in-law, C. A. Buckley, of San Francisco. Moore has not been heard from for nearly a week, and an investigation of his affairs is being made by John P. Leahy, who is looking after the interests of Mrs. Moore and the members of his family. In speaking of the case Leahy admitted that Moore had gone away, leaving his affairs very seriously complicated, but, according to Leahy, thus far his investi- gation had shgwn nothing of a cgminal character. | The present publicity given to the case was brought out through a civil suit in- stituted against Moore early last week. A large portion of Moore's business has been in connection with transfers of prop- erty, In many cases in which he acted the purchase money was paid to him in- stead of directly to his client. The pro- ceeds of sale he has in_some cases, {t is said, neglected to pay. In other instances amounts given him by clients to close deals have not been so used, but the at- torney is supposed to have misapplied the funds. Moore is well known about town, having been admitted to Suffolk bar in 1388. He was a member of the Legislature in 1399 and again in 18%, having been elected as MEKIGO DENIES CHURCH CLAIM Republic’'s Case Pres- ented to The Hague Tribunal. THE HAGUE, Sept. 28.—Attorney Ral- ston of San Francisco occupied the morn- ing session of the International Court of Arbitration, which is hearing the argu- ments in the case of the Plus fund. He contended that Mexico was bound by the judgment of the previous arbitration court, which counsel anticipated the present court would confirm, thus in- creasing the general confidence in arbi- tration as a means of settling disputes. When the session was resumed in the afternoon the court refused an applica- tion from the American counsel that Lawyer Descamps should be heard Mon- day. It was explained that Descamps was prevented from attending this week. Attorney de la Croix opened Mexico's case. He maintained that there was no question of a conflict of nations involved in the present dispute, which was merety u case of diplomatic Intervention by the United States in favor of a private claim of the Archbishop of California ‘against the Government of Mexico. Hence only the actual law of Mexico was applicable and not the vague principles of equity invoked by the United States. The fund in dispute, counsel continued, was established with the object of politi- cal conguest and the right of disposin of the ?und belonged to the King o Spain and subsequently to, Mexico, but pever to the church. Dies of Thirst on the Desert. SAN BERNARDINO, Sept. 2.—Word has reached here from Valley Wells, a small mining camp, that Herman Rene, a well-known miner and brother of Dr. an Independent Democrat. He has made Rene of this city, had been found dead unsuccessful efforts to be elected to the on the desert near there. He is supposed to have dled of thirst. Hete' e a swell hose to wear with Ox- ford ties. Asa rule you have to pay about soc a pair for fancy hose suitable for wear with low cut shoes. For 25¢ a pair we are selling embroidered hose in black, gray, tan or car- dinal with small figures or horizontal stripes in harmonious colors; black, tan, gray and cardinal. See the hose on display in our windows. also lace effects in plain Exceptional values—large size Japanette silk handkerchiefs, with initials—2 for 25e. Out-of-town orders filled--write us. SNWooD's (- 718 Market Street