The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-06-10
GOVERNMEN
LOSES AGAIN
Clerk in District Auditors Office
an Embezzler.
AMOUNT TAKEN OVER 500, 900
YOUNG MAN WAS A REFORM
SCHOOL GRADUATE.
AMOUNT TAKEN OVER $50, 600

III ASHINGTON, June 9.-James NJ.
w Watson. jr. q clerk in the Office
of the auditor for the District Of
Columbia. and son-in-Iaw of a wealthy
retired contractor, was arrested today
on q charge of embezzlement of gov
eminent funds The amount is esti-
mated at from $4,000 TO $4,000. The
warrant makes a specific charge Of en-
bezzIement of s8,009. which represents
only a portion Of the alleged pecnia-
tons.
Was Not Bonded.
Watson was not bonded. and in case
he or his relatives. several of whom
are said TO be wealthy. fail to make
good the alleged losses, Auditor J. 7.
Petty viii be held responsible for the
/ amount. The auditors bond is for
$4,000. The money alleged to have been
I-embezzled was part of the funds de-
posted in the Office of the auditor by
property owners who are willing to
pay half of all costs Of improvements
abutting on their property, such as
paving sidewalks, alleys and streets.
I This fund is entirely separate from the
other accounts and is not subject to
review by the treasury department,
but is checked by the clerk in charge
of the corresponding account in the
district department. This cicrN TepOr--
co II correct as late do OF udLgB IJU-.
Stole From the Start.
The deDositors, it is said. have the
right to recover from the district
through suit The auditors Office IS TN
der the supervision of the board of
/ commissioners of the District of Col
umbia Auditor Petty has complete
charge of the assessment and permit
fund. depOsit1ng the money in a bank
to his own credit. Mr. Watson, it is
alleged. has been entrusted with max
ing the deposits and has returned the
pass book in apparently a proper con
dition in each instance He has been
an emplOye Of the district for four
years and the alleged defaIcations are
supposed to have taken place during
most of that period. The discovery of
the alleged shortage was made several
days ago, but was kept secret by the
auditor in the hope of securing resti-
tuition.
Report Demanded.
The commissioners of the district
were made acquainted with the Condi-
ton Of affairs this morning and at a
/ special session demanded from Auditor
Petty a formal report on the matter
and an explanation of the system by
which such a large sum Of money could
{ be distracted without earlier detection.
/ This is said to have been inquired into
ten or twelve years ago, but no changes
in methods resulted Auditor Petty
I said today that the accounts had been
manipulated in such a clever manner
that he was not certain of the exact
situation.
Watson was a joint publisher of a
I news bulletin issued in this city In ad-
dition to running the paper he owned a
/ barber shop which he had been trying
to sell recently. He also was the pro-
mOter of patent medicine concern and
| the treasurer of what IS known as the
/ District Cooperation association which
takes in money from employees on de-
I post and lends it .Out again.
Reform School Graduate.
Many of the officehoIders at the dis
/ trict building are depositOrs in the as
ISOLATION. turning the money over en-
tirely to Watson and getting his person
al receipt IN tiny books resembling
/ bank books Several months ago Ma
! jOr. Sylvester. the chief of police here.
/ investigated WatsOn's record and it is
| stated that he found Watson was sent
[ TO the, reform school while in his minor
/ itv on a charge Of forgery.
/ Watson's bail was fixed a $4,000, which
/ il was stated viii be furnished tomorrow
/ by several bonding companies The ar
| rested man spent the night IN a police
( station. In a long statement which he
made TO a reporter. Watson attributed the
! ALLEGED shortage to careless bookkeeping
| and denied that he had been guilty Of any
] embeZZlement-