Omaha daily bee., 1903-06-10
MORE ARRESTS EXPECTED
Postal Investigation Likely to Breed
Another Crop of Sensations.
AUDITORS CLERK HELD FOR tMsEzzLlNG
District of COIumbia OmciaI Accused
Of MisaPprsprIatinE Monies
Given Him to Deposit
I'm bank.

Given Him to Deposit
I'm Bank.
WASHINGTON, June s.-First Assistant
General Wynne was acting postmaster gem
eral today in the absence of Mr.. Payne.
Mr. Bristow spent a large portion of the
day la conference with General superin-
tendent Fosnes of the free delivery system
and a number OF postoffice inspectors re-
garding the investigation, but no complete
developments were made public There are
many rumors of impending dismissals and
arrests but officials refuse TO discuss them.
The records of a number of the officials
and employees are being thoroughly over
hauled. The proposed rural free delivery
routes inspected and recommended for es-
tablishment under the Machen administra-
ton are held up following the discovery
of the large deficit in the appropriation
| for free delivery service, and will be re-
inspect-d before final action Is taken. There
are many of these routes.
A number of southern representatives In
congress are making inquiries regarding
| the plans for the rural free delivery SER
vice and protesting against delay In the
| establishment Of routes already recon-
| mended and against any possible curtail
ment of existing service
The payment of fee of 800 to General
1 william w. Dudley, member Of local law
| firm. in connection with the location Of a
postal substssion in the drug store Of John
w. Stone has been investigated by the In
| spectors.
General Dudley Acknowledges having been
| paid for his services, but says it was le-
climate transaction.
| ''Mr stone" said General Dudley today,
| twas a married man who came TO me and
said he believed could help him In getting
the substation, which he desired. 1 con-
suited Postmaster Merritt, pleaded for Mr..
| stone as best / could and succeeded Four
or five years ago helped Mr.. Prentis to
secure a substation in that vicinity, but
did not charge him for the work. Mr..
stone came to me as a stranger. 1 am
aware that It is not high class Of legal
business, but we have to take up little mat
ters of that kind as occasion offers to meet
our ofice expenses"
DrfgRist stone complained that after
nearly three months the station that cost
him 500 was summarily removed across the
street.
CoIumbia Clerk Arrested.
| James NJ Watson, jr., clerk In the
ONCE of the auditor for the District OF
Columbia and son-in-law Of a wealthy re-
tired contractor, was arrested today
charged with embezzling government funds
, The amount is estimated at from $4,000 tc
$4,000.
The warrant makes the specific charge
of embezzIement of 5000, which represents
: only a. portion OF the alleged peculations.
: watson was not bonded and In case hs
or his relatives fail to make good the al
legged losses, Auditor j. T. Petty will b'
, held responsible for the amount. The
auditors bond is for $4,000.
a The money alleged to have been embez
: sled was part Of the funds deposited IN th'
d once of the auditor by property owners
al who are willing to pay half or all costs o
= improvements abutting on their property
ol such as paving sidewalks, alleys anC
streets. This fund is entirely separate from
{ the other accounts and is not subject tC
I review by the Treasury department, but Il
b checked by the clerk In charge OF tn'
corresponding account in the District oe
partment This clerk reported 1t correc
as late as February, 1902.
auditor Petty has complete charge OF tn
, assessment and permit fund, depositing tn
money in a bank to his own credit. Mr.
Watson. It is alleged. has been entruste'
with making the deposits and has returne
the pass book in apparently proper condi
! tion In each instance. He has been al
e employe of the District for four years an
r the alleged defalcations are supposed Z
: have been spread over most OF that period
& The discovery Of the alleged shortage wa
made several days ago, ,sbut was kept secre
n by the auditor in the hope of securing resu
tuition. The commissioners OF the Distric
were made acquainted with the conditio
az affairs this morning and at specis
| - tn
r matter and an explanation of the syster
Iby which such large SUM Of money coul
lhe abstracted without earlier detection. Tn
svstem ts said to have been inquired int
ten or twelve years ago, but no change
In methods resulted.
p Auditor Petty said today that the &C
r counts had been manipulated In such
clever manner that he was not certain Q
r. the exact situation.
watson was q Joint publisher of new
+ bulletin issued in this city. In addition
It running the paper he owned barber shoI
which he had been trying to sen recentl!
J He was also the promoter Of patent med
cine concern and the treasurer of what
1t known as the District Cooperative assc
ID citation, which takes in money from en-
ployes on deposit and lends It out again
IN Many OF the ONCE holders at the DistriC
building are depositors in the association
y turning the money over entirely to Watso
and getting his personal receipt In tin
s. books resembling bank books. Sewers
motnhs ago Major sylvester, chief of pC
IN lice. Investigated Watson's record and
or is stated he found he was once sent
ID the reform school for forgery.
Canal Negotiations Must End.
,, Important conferences have been in proI
n. ress lately between Secretary Hay and pc
n sons connected with the Panama canal Ell
% terprise, the outcome of which is a determ
% nation to promptly terminate the negoti'
90 tions with Colombia one way or the othe
Sc The presidents patience Is well nigh e.
a. hausted over the conflicting reports In r
1n gard TO the treaty that come from Colon
!, bia, and that government is to be mat
a. aware of that fact. On the Goth inst. Il
81 Colombian congress will convene and
les proceedings will be watched with the grea
ch est interest here.
es II It shows an earnest purpose to CO.
slider the treaty a due allowance OF tin
- - will be made by our government.
II there is an evident purpose TO dell
- ratification beyond a reasonable time, tn
y tha treaty negotiations will be abrupt