Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-06-30
HOLD A CONFERENCE
Commissioners CONSIDERABLE
tor Petty's Report.
WATSON DEFALCATION
AUDITOR SUBMITS PLAN FOR
HANDLING FUNDS.
The Details Combined in Letter to Com
missioner West-An Explana-
ton Called For.
WATSON DEFALCATION

evening, after having been slightly injured
in the wreck of the special train near VIII
mington. presided over an important ses-
sion of the District board today Together
with Commissioner West and Engineer
Commissioner Bddle, Mr. Macfarland took
up the consideration of Auditor Petty's re-
port concerning the $4,000 defalcation by
James NJ A. Watson.
Mr. Macfarland saw Mr.. Petty's official
statement for the first time today. He
had become somewhat acquainted with the
general features of the document through
the newspaper reports. AS many other
matters required the attention of the board
during the session. however 1t was stated
that no conclusion had been reached and
no action taken upon the report.
The general impression at the District
building is that the Commissioners will
consider the matter several days before
acting
The report is a lengthy one and contains
many statements which will require the at
tention of the Commissioners. Collateral
reports have been called for from several
heads of departments.
Mr.. Petty today submitted to Commits
sioner West the outline of a plan for ham
ding the funds formerly placed in his
hands. but which are now to go through
the Treasury Department and the District
disburSing officer.
The auditor declares a statement should
be made as to the condition of this fund
no less infrequent than once month. 1t
is believed that had there been such a
close supervision of the accounts while in
Watsons hands he would have been unable
to manipulate the funds as he did
THE conclusion having been reached"
says Mr.. Petty, that all moneys hereafter
received from citizens for what is techni-
cally known as whole cost work. shall
ad nf 10 C.
trict of Columbia with the treasurer of
the United States. to the credit Of the dis
bursting officer, and the accounts audited
by the auditor for the State and other de-
partments. the next step will be to formu-
late regulations for receiving, disbursing
and accounting for the same.
Suggestions Made.
ITO this end have the honor to offer the
following suggestions:
The term 'whole-cost' has heretofore
meant only deposits for work the entire ex-
pense of which is borne by the depositor,
but 1t now becomes necessary to enlarge
the scope of the meaning so as to make 1t
include all receipts of every kind, outside of
District revenues, that do not belong to
appropriations or to funds established by
law. This will include deposits for crossing
sidewalks plumbers deposits, guarantees
for proposals or plans, pay of policemen at
street railway crossings, railroad construc-
ton and guaranty under charter, receipts
from wholesale producers market, and all
other miscellaneous funds of any kind and
every character.
"A book should be provided with leaves or
sheets consecutively numbered, that any
omission could at once be detected. Every
sheet should bear a stub, depoSitor's re-
ceipt and auditors duplicate thereof, sep
arated by perforation marks, so as to be
readily detached, and having the same
serial number The stub, receipt and au-
nrfa 1rrrNlf 70 oh hnrtl1 tnt, aa lntn
name of depositor, amount and purpose of
deposit, to be filled out concurrently with
the making of the deposit the receipt to be
delivered to the depositor as his voucher,
the duplicate to be sent to the auditor to
enable him to open an account with the de-
positor and the stub to be retained in the
office of issue, which, preferably should be
that of the assessor.
Letter of Advice.
THE letter OF advice to the depositor
should always accompany the duplicate re-
ceipt to the auditor, to insure proper entry,
the latter indorsing thereon the number,
date and amount of deposit. and promptly
transmitting the same to the chief clerk of
the engineer department
The auditor should make monthly state
ments of the total receipts, expenditures
and aggregate Of unexpended balances to
credit OF depositors and the operating ac-
count, which should equal the amount on
utpoSlt Win tN6 treasurer OF the United
States to the credit of the fund.
This statement, accompanied by the
vouchers for expenditures, should be ceru-
lied by the Commissioners and transmitted
to the auditor for the state and other de-
partments for audit.
The several offices of the engineer dc
partment should keep a separate ac count OF
all charges against the various deposits SO
that at the close of each month an assess
ment can be made TO cover the actual cos.
OF operations to date. plus the usual per-
centage for the repair of tools, salaries and
miscellaneous items now reckoned at nor
centum, to be debited to the depositor and
credited TO the fund. All charges for work
done should be made against the operating
account the debit to the depositor being
made by assessment.
Assessments together with all bills for
labor and material, should be entered by
the bookkeeper in the office Of the engi-
neer department In charge of the general
account Of this fund. before transmission
TO the auditor, thus securing a complete
check with the corresponding account In
the Office OF the latter
Rebate certificates for the unexpended
balances of deposits similar in form TO
those now in use by the engineer depart
ment. should be sent direct to the auditor
without entry In the operating account, as
the monthly balance sheet would demon
strate the correctness of the whole account
But One Voucher.
Care should be taken to see that bu.
one voucher is prepared. as a duplication
might open the door to fraud, and, for the
reason also that only one is necessary, as
under the arrangement now contemplated
the auditor for the State and other depart
ments, after completing his examination,
will return the accounts for filing perma-
nently in the Office of the auditor Of the
District OF Columbia
The superintendent of property while
he should issue all material for the fund
In accordance with the routine plan of his
office. should keep this account separate
from all others, 50 that 1t may be practi-
cable at any time to make statements
of all outstanding obligations In addition
he should arrange for the monthly payment
or all bills. leaving none unsettled at the
end or each thirty day period.
The plan herein outlined does not con-
template the use OF this fund for work un-
der appropriations. as 1t Is believed that
1t would be more to the interest of the
government to require that each appropria-