Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-06-09
LOCAL FUNDS CONE
James N, Watson, Jr,
Short in Accounts
IN AUDITORS OFFICE
Defalcation Amounts to About
$4,000.
WARRANT FOR ARREST
DEPOSITS OF CITIZENS FOR
SPECIAL PERMIT WORK.
Creates Sensation at the District
Building-Eforts to Obtain
Restitution
FOR ARREST
DEPOSITS OF CITIZENS FOR
SPECIAL PERMIT WORK.

The District Commissioners this morning
learned that James NJ. Watson, jr., who
has charge of the funds deposited in the
Office of the auditor by property owners for
assessment and permit work. is alleged to
be short in his accounts. The amount of
the alleged defalcation is said to be In the
neighborhood of $4,000. Young Mr. Wat
son is not bonded. the fund with which no
was trusted being under the District au-
ditor, Mr.. j. T. Petty, who is bonded in
the sum of $4,000 Watson will be arrest
ed soon as he can be found warrant
having been sworn out by tine Commits
sioners charging embeZzlement.
Young Watson has a number of rich
relatives, and 1t is understood that an
effort has been in progress to secure a re-
payment Of the money by them. He is
son-in-law of John II. Bryant of 2U20 Co.
lumbia road, retired railroad contractor,
having married some years ago Miss Keith
crime Bryant. The Commissioners met in
board session this afternoon to receive a
formal report from the auditor in regard
to the shortage Mr.. Petty was called upon
to submit a full explanation of the matter
including the office system by which such
a large sum could be abstracted without
quicker detection.
The discovery of the alleged shortage in
Watson's accounts was made several days
ago. A misaid check. 1t is said first called
about examination of his books and at
that time the supposed Irregularities were
discovered. Mr.. Petty, the auditor, took
no legal action at the time, but placed
Watson under surveillance, and made an
effort to obtain restitution from him or his
family.
Commissioner Henry L. West, who has
supervision of the auditors office. was not
made acquainted with the state of affairs
until this morning, when he sent for Mr..
Petty and asked him about the check Incl
dent. The auditor explained that he was
just on his way to the Commissioner to
put the whole subject before him.
The loss, If there should be any, through
failure of Mr.. Watsons family to make
the amount good, will probably have to be
shared by Mr.. Petty or his bondsmen. The
fund from which the money is said to have
been taken is purely a District one, not
checked or handled through the Treasury
Department, as are the general accounts.
The system of keeping the fund was gone
over some ten or twelve years ago by the
Commissioners. but no change was ordered.
Watson has been in the District employ
but little more than four years, and 1t is
supposed he must have divided his alleged
peculations over that period of time, taking
probably $4,000 year. He was first ap-
pointed as a temporary clerk in the audi
tors office December b. 1898. The date
may be considered an unlucky from
the District standpoint, If present appear
ances develop into undeniable facts. His
first salary was 81 900 a year. On July 1,
1901, Mr.. Watson had proved himself such
an efficient employe in the opinion of his
chief that he was placed on the permanent
role at 81 ,4OS.50, being paid on a per diem
basis from the assessment and permit fund.
The fund from which the money was alb
stracted is a distinct one, entirely separate
and apart from the regular District
1t is the only important fund that
is not handled by the District disbursing
officer Mr. c. c. Rogers. The latter han
dies the funds shared in by the District
and the United States. and renders his ac-
counts to the Treasury Department.
The Fund.
The assessment and permit fund is
created by deposits OF citizens who desire
improvements in front of their property.
If a resident on a certain street desires a
new sidewalk laid, curb set or sewer con-
structed, he deposits one-half of the esti-
mated cost of such work in the office of tho
District auditor. The other half neces-
sary to do the work is provided through
appropriation from Congress. BY this
scheme the property owners pay one-half
of the cost Of the Improvement, the Dis
trict one-quarter and the United States
one-quarter. The money alleged to have
been stolen is from the citizens deposits.
and it is said these people may have a
right to recover from the District through
a suit.
The assessment and permit fund was left
entirely in the hands Of the auditor. This
practice has been in vogue for many years.
Mr. Petty had complete charge of the
money, depositing it in a bank to his own
credit. Mr. Watson, 1t is stated, has been
in the habit of making the deposits and re-
turning the pass book in apparently proper
condition.
The Commissioners are very much
wrought up over the matter. They feel
somewhat indignant that such state or
affairs should have existed at the District
building without their knowledge. 1t ap-
pears that no one outside the auditors Of
fee was acquainted with the alleged short
age until today Mr.. Petty explained to
West that the man was un-
der his surveillance.
AS soon as the Commissioner learned OF
the serious nature of affairs, however. he
sent for Major Sylvester the
of police. and placed the
matter before him. Major Sylvester sec
onded Mr. Vests idea of immediate action
In the case. Mr. West next had a confer
ence with Commissioner Macfarland, call