Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-11-16
HEAUD|TOR'S REPORT
Statement Of District Fl
nances for Past Year.
TREASURY ACCOUNTS
INDEBTEDNESS ON ACCOUNT OF
ADVANCES MADE.
Reference to Shortage Due to Alleged
Defalcation of James M.
A. Watson.
TREASURY ACCOUNTS

The report of the operations oL tho
auditors office of the District for the hscai
year ending June 80, 1908, has been SUD-
mitted to the Commissioners by Auoltor
John R. Garrison. Mr. Garrison entereo
the office August II last, and the report
embraces the transactions Of the once
prior to that date. Among other Things
| the auditor presents a statement OF the
account of the District with the treasury
of the United States and statement rela-
tive to the shortage in certain accounts
under the administration Of the late au-
ditor. Mr. Garrison also makes a num-
Der of recommendations to the Commits
sioners regarding proposed changes in the
method of handling certain moneys anu
other matters connected with the affairs
of the District.
An unusual proceeding was adopted In
the giving out of the auditors report this
wear The report was sent to the residence
of Commissioner West late Saturday after
noon and upon the Commissioner return
from Harpers Ferry yesterday the report
was given out for publication from Mr..
The report shows that the revenues from
| all sources deposited in the treasury of the
| United States during the fiscal year enueo
| June So 1903, amount to S4,54O22S. Inc
| proportionate part of repaymentS TO appro-
| priations during said fiscal year properly
| credited to the District of Columbia aggre-
gate pa, 1928 The amount of advances
| by the United States during the fiscal year
| ended June 3d. 19O3 chargeable to the
/ revenues of the District is $4,643, 435.34
| leaving a surplus of revenues over ad-
| vances for the fiscal year ended June 80
| 1903 of $1,000 80. From this must be
! deducted the interest at the rate of per
| cent for the fiscal year 1903, computed on
! 81, 759, 23S34, the actual Indebtedness of the
! District to the United States on account of
| excess of advances to June 30, 1907, 500
| Nl,o 1~y,1tt nf
| advances for and during the fiscal year
| ended June 80, 1903, is $1O5, 12OS3.
Districts Actual Indebtedness.
The actual Indebtedness of the District
to the United States on June 30, 1902, on
account of excess of advances over reve
nues was 81, 759, 1854. Deducting the net
! surplus of revenues for the fiscal year
ended June so, 1908, $1O5, 720. 49, the actual
| Indebtedness of the District of June 80
| 1893 on account of excess of advances over
revenues to that date is shown to be 81, $685.,
| 51751. .
The obligated indebtedness or liability of
| the District of Columbia, under appropri-
atoms to June 30, 1903 is stated at $780,
S61.14. This amount is exclusive of two
amounts of s1J0OOO each, due, respectively,
| July /, 1901, and July /, 1902, payable from
the revenues of the District of Columbia,
under the provisions of section 8 of the
| act of Congress approved February r. 1901,
certain grade crossings of railroads in the
District CT Columbia, to require and
authorize the construction of new terminals
and tracks for the Baltimore and Ohio
| Railroad Company in the city of Washing
| ton, and for other purposes" Oh stats. 1IS),
| which section requires that one-half of the
| appropriation of 1880, 900 made by said act
| to be paid to the Baltimore and Ohio Rail-
| read Company at the time and under the
| conditions therein specified shall be paid
| fl ON the revenues of the District of Column
ba to the treasurer of the United States,
to be by him invested in interest
or the District of Columbia, the
payments to the treasurer to be at
the rate of $4,000, commencing July L.
1901, and annually thereafter at said rate,
until the full amount of s75OOoO shall have
been paid. There being no surplus rev.
Ell ues of the District on July 1, 1901, and
| July l, 1902, no payments to the treasurer
| were made under the provisions of the
| aforesaid act
| If the two payments of $4,000 each due
| and payable July l. 1901, and July 1, 1902
| be treated as an obligation of the District
| on June 80, 1903, under the said appropria-
| ton, the Indebtedness of the District under
| all appropriations will be increased to So
| 566, S67. "a
| Balance in the Treasury.
| The report shows that the balance In the
| treasury of the United States June 80, 1903,
subject to requisition on account Of appro-
| priations for the District for the fiscal year
| 1903 and prior years. was 50, 1914, 624.O7 This
| balance exceeds that shown by the books of
the Treasury Department in the sum Of
81 .991. II, which sum was expended by the
| Commissioners from the appropriation for
| improvements and repairs. D. c., 19O3,' for
| the repair of certain streets, to be charged
| to the amount retained from the contract
| with the Barber Asphalt Paving Company,
and deposited with the treasurer of the
| tod fafo cfa to he
| the above-named appropriation has not
| been effected, because Of restraining order
| issued by the Supreme Court Of the District
of Columbia. and the matter is held in sus-
| pense by the treasurer Of the United States
| pending the final decision of the case in said
| court.
The above balance Of g, 1914, 624 OF, includes
no part of the appropriations of $1,5OO,OOO
| (one-half payable from the revenues of the
| District of Columbia), made by section 8 of
the act of February II, 1901, for terminal
| improvements. Baltimore and Ohio railroad,
District Of Columbia" digest Of appropria-
tons 1902, page 134), from which appropria-
| ton no advances have been made.
| watson's Alleged Defalcation.
In regard to the alleged defalcations in
the auditors Office. Mr. Garrison submits
a statement, designated as statement IL, :"
which, he says, is explanatory Of the as
certained shortage in certain accounts in
| the office, which occurred prior to the time
| he assumed the duties Of auditor, arising
from the alleged defalcation Of James M.
| A. Watson. The report says:
| 1.-THE gross amount of this deficiency, as
ascertained upon the examination made
! Immediately after the discovery Of the ir-
| regularities in the accounts involved, and
as subsequently verified by the report dated
| July II, 1903, of the special examiners APP
| pointed by the controller of the treasury
| and the auditor for the State and other
| departments, to investigate the Office OF
the auditor of the District of Columbia, is
| ST. ,34747.
LAS the said report explains in detail
how this shortage occurred, and the meth
DDS which prevailed In relation to certain
funds which were formerly disbursed by
the auditor of the District, a copy of the
same is submitted as an appendix to this
| report.
The above gross deficiency of $77,347. Al
| consists of: Total ascertained shortage in
the various deposit accounts, now known
as the whole cost deposit fund, the checks
drawn to reimburse said deposit accounts
having been paid, but the proceeds thereof
not credited to said deposit accounts and
not accounted for S54, 339.9S.
Checks drawn by the disbursing officer
of the District of Columbia on the treas
~